Econometric Models of the U.S.economy Generally Agree

question 4

Multiple Choice

Econometric models of the U.S.economy generally agree

• A)on the quantitative impact of monetary policy over a horizon of several years.
• B)that an increase in money growth will increase output in the short run.
• C)that an increase in money growth will decrease output in the short run.
• D)that an increase in money growth will decrease output in the long run.
• E) that "rational expectations" is the best way to generate policy forecasts.

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Definitions:

Supply

The total amount of a product or service available for purchase at any given price level in a given market.

Market

A system where buyers and sellers interact to trade goods, services, and resources.

Productivity

The efficiency with which inputs, like labor and capital, are converted into outputs, typically measured as a ratio of output to input.

Percent

A part per hundred, a unit of measure used to express the fraction of a quantity relative to one hundred parts of the total.