Questions from Managerial Economics


Q: Describe the five time lags involved in implementing stabilization policy.

Describe the five time lags involved in implementing stabilization policy.

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Q: How does the Taylor rule relate to the monetary policy curve?

How does the Taylor rule relate to the monetary policy curve?

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Q: Would it be a good idea for monetary policy makers to set

Would it be a good idea for monetary policy makers to set the federal funds rate solely using the Taylor rule?

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Q: How can the monetary authorities target any inflation rate they want?

How can the monetary authorities target any inflation rate they want?

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Q: Explain the processes of cost-push and demand-pull inflation

Explain the processes of cost-push and demand-pull inflation. How do macroeconomists distinguish between the two?

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Q: How does the policy rate hitting a floor of zero lead to

How does the policy rate hitting a floor of zero lead to an upward-sloping aggregate demand curve?

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Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on real GDP (GDPC1), real private domestic investment (GPDI), corporate profits (CP), a measure of the price level (PCECTPI), a measure...

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Q: Why does the self-correcting mechanism stop working when the policy

Why does the self-correcting mechanism stop working when the policy rate hits the zero lower bound?

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Q: What nonconventional monetary policies shift the aggregate demand curve, and how

What nonconventional monetary policies shift the aggregate demand curve, and how do they work?

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Q: What role does the financial system play in promoting economic growth?

What role does the financial system play in promoting economic growth?

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