PLEASE EXPLAIN YOUR ANSWERS

QUESTION35 In the AS-AD framework, SRAS represents ______________________________. 1. none of the above 2. inflation in the long run 3. C + I + G + X - M 4. the steady-state productive capacity of the economy based on the current production function and the supply of the factors of production 5. the short-run output of the economy at different price levels

QUESTION36 The "independence of the central bank" refers to _____________________________. 1. independence from political influence and the fiscal authority 2. none of the above 3. independence from other central banks around the world 4. independence from the monetary authority

QUESTION37 Poorly timed discretionary macroeconomic policy can do more harm than good. Timing is usually a larger concern with _______ policy than it is with _______ policy. 1. none of these answers. It is similarly difficult to get the timing right for both fiscal and monetary policy. 2. monetary; fiscal 3. expansionary; contractionary 4. fiscal; monetary 5. contractionary; expansionary

QUESTION38 Please read the WSJ news alert from April 28, 2021. This must be a __________ rate because otherwise it would not account for __________ and it would be misleading. 1. nominal; the level of interest rates 2. real; the level of interest rates 3. real; inflation 4. nominal; inflation

QUESTION39 From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply, then the Federal Reserve would most likely: 1. decrease income tax rates. 2. increase target interest rates. 3. increase income tax rates. 4. decrease target interest rates.