In the Stylized DSGE Model with Sticky Prices, How Does $F F R \downarrow \rightarrow A D \uparrow \rightarrow \pi \uparrow \rightarrow \left( \frac { W } { P } \right) \uparrow$

question 87

Multiple Choice

In the stylized DSGE model with sticky prices, how does contractionary monetary policy shock affect the labor market?

• A) \(F F R \downarrow \rightarrow A D \uparrow \rightarrow \pi \uparrow \rightarrow \left( \frac { W } { P } \right) \uparrow\)
• B) \(G \downarrow \rightarrow A D \downarrow \rightarrow \pi \downarrow \rightarrow L ^ { s } \downarrow\)
• C) \(F F R \uparrow \rightarrow A D \downarrow \rightarrow Y \downarrow \rightarrow L ^ { d } \downarrow\)
• D) \(F F R \downarrow \rightarrow A D \uparrow \rightarrow Y \uparrow \rightarrow L ^ { s } \uparrow\)
• E) \(\tau \uparrow \rightarrow A D \uparrow \rightarrow Y \uparrow L ^ { D } \uparrow\)

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Definitions:

Display Rules

A social or cultural group’s informal conventions regarding whether, how, and under what circumstances emotions should be expressed.

Personal Sphere

The aspect of an individual's life that involves personal beliefs, values, and desires, distinguishing one's private self from the social or public self.

Moral Imperatives

Consist of principles or commands that are seen as universally binding and crucial for ethical behavior, often differentiated from moral suggestions by their obligatory nature.

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Refers to the ability to regulate one's emotions, thoughts, and behaviors in accordance with long-term goals.