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1、EconomicsofMoney,Banking,andFin.Markets,10e(Mishkin)Chapter23MonetaryPolicyTheory23.1ResponseofMonetaryPolicytoShocks1)PolicymakerscannotachievebothpricestabilityandeconomicactivitystabilitywhenfacingA)temporarysupplyshocks.B)permanentsupplyshocks.C)demandshocks.D)alloftheab
2、ove.Answer:AQuesStatus:NewAACSB:Analyticskills2)ThedisruptiontofinancialmarketsstartinginAugust2007thatcausedbothconsumerandbusinessspendingtofallA)shiftedtheaggregatedemandcurvetotheright.B)shiftedtheaggregatedemandcurvetotheleft.C)shiftedtheaggregatesupplycurvetotheright.D
3、)shiftedtheaggregatesupplycurvetotheleft.Answer:BQuesStatus:NewAACSB:Reflectivethinkingskills3)Whentheeconomyishitbyanegativedemandshockandthecentralbankdoesnotrespondbychangingtheautonomouscomponentofmonetarypolicy,thenA)inflationwillbelower.B)outputwillbeatitspotential.C)o
4、utputwillbelower.D)inflationwillnotchange.E)bothAandB.Answer:EQuesStatus:NewAACSB:Analyticskills4)Whentheeconomyishitbyanegativedemandshockandthecentralbankpursuespoliciestoincreaseaggregatedemandtoitsinitiallevel,thenA)inflationwillbelower.B)outputwillbeatitspotential.C)out
5、putwillbelower.D)inflationwillbeunchanged.E)bothBandD.Answer:EQuesStatus:NewAACSB:Analyticskills12Copyright?2013PearsonEducation,Inc.5)Iftheeconomysuffersapermanentnegativesupplyshockbecausethereisanincreaseinregulationsthatpermanentlyreducethelevelofpotentialoutput,thenA)po
6、tentialoutputfalls.B)thelong-runaggregatesupplycurveshiftsleftward.C)theshort-runaggregatesupplycurveshiftsupward.D)alloftheabove.Answer:DQuesStatus:NewAACSB:Analyticskills6)Whentheeconomysuffersapermanentnegativesupplyshockandthecentralbankdoesnotrespondbychangingtheautonom
7、ouscomponentofmonetarypolicy,thenA)inflationwillbelower.B)outputwillbeatitspotential.C)outputwillbelower.D)inflationwillnotchange.E)bothAandB.Answer:CQuesStatus:NewAACSB:Analyticskills7)Whentheeconomysuffersapermanentnegativesupplyshockandthecentralbankdoesnotrespondbychangi
8、ngtheautonomouscomponentofmonetarypolicy,thenA)inflationwillbelower.B)outpu
