inflation and monetary policy Flashcards
The table shows the annual inflation rate (the GDP deflator) of Japan, the UK, China and South Sudan in the period 1996-2015 (source: World Bank). You can click on the table to enlarge it.
Based on this information, which of the following statements is correct?
south sudan price level is higher in 2015 then 1996
The table shows the nominal interest rate and the annual inflation rate (the GDP deflator) of Japan in the period 1996-2015 (source: World Bank). You can click on the table to enlarge it.
Based on this information, which of the following statements are correct?
japans real interest rate has turned from being positive to negative during the period
the real interst rate has been falling faster then the nominal interest rate
The figure shows the diagrams of the labour market model, the Phillips curve and the multiplier model of aggregate demand. The unemployment rates and the bargaining gaps at different states of the economy are shown. You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
in the boom shown the upward shift in AD curve reduces unemployment rate which in tun creates a bargaining gap of 1%
The figure shows a scatter plot of the inflation rate and the unemployment rate for the US for each year between 1960 and 2014 (source: Federal Reserve Bank of St. Louis (FRED)). You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
the phillips curve suggests a trade of between 2% fall in unemployment rate and 2-3% rise in inflation rate in the 1960’s
The figure depicts the diagrams of the labour market model and the Phillips curve that incorporates inflation expectations. You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
upwards shift of the phillips curve represent an inflation rate of a given unemployment rate
Which of the following statements is correct regarding monetary policy?
when interest rate goes down, asset prices go up
The figure depicts the Phillips curve and the indifference curves of an economy. This economy has an independent central bank with an inflation target of 2%. You can click on the figure to enlarge it.
Based on this information, which of the following statements is correct?
consider an AD shock that increases unemployment. without fiscal or monetary policy to counter the negative bargaining gap, the phillips curve would shift down
