布兰查德宏观经济学第七版第7版英文版chapter21.docx

布兰查德宏观经济学第七版第7版英文版chapter21.docx

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布兰查德宏观经济学第七版第7版英文版chapter21

Macroeconomics,7e（Blanchard）

Chapter21:

ShouldPolicyMakersbeRestrained?

21.1UncertaintyandPolicy

1）In1994,Republicansintroducedtheir"ContractwithAmerica."Thisplan

A）includedaPAYGOrule.

B）wouldrestricttheabilityofmonetarypolicytoaffecttheeconomyintheshortrun.

C）includedalineitemveto.

D）wouldmaketheFederalReserveevenmoreindependentthanitalreadyis.

E）alloftheabove

Answer:

C

Diff:

1

2）EconometricmodelsoftheU.S.economygenerallyagree

A）onthequantitativeimpactofmonetarypolicyoverahorizonofseveralyears.

B）thatanincreaseinmoneygrowthwillincreaseoutputintheshortrun.

C）thatanincreaseinmoneygrowthwilldecreaseoutputintheshortrun.

D）thatanincreaseinmoneygrowthwilldecreaseoutputinthelongrun.

E）that"rationalexpectations"isthebestwaytogeneratepolicyforecasts.

Answer:

B

Diff:

1

3）Allofthemacroeconometricmodelscurrentlyinuse

A）originateintheUnitedStates.

B）incorporaterationalexpectationsintotheirpredictions.

C）originatewithgovernmentorinternationalagencies.

D）originatewithcommercialfirmswhoselltheirforecaststootherfirmsandgovernments.

E）noneoftheabove

Answer:

E

Diff:

1

4）Forthisquestion,assumethatthethereexistsuncertaintyabouttheimpactofmonetarypolicyonthemacroeconomy.Giventhisinformation,itwouldbemostappropriateforthecentralbanktoincreasemoneygrowth

A）atthemidpointofarecession.

B）bymorethantheincreasethatwillyieldthedesiredresponse.

C）bylessthantheincreasethatwillyieldthedesiredresponse.

D）byanamountequaltotheincreasethatwillyieldthedesiredresponse.

E）onlyafteritiscertainthattheeconomyhasenteredarecession.

Answer:

C

Diff:

2

5）Giventheuncertaintyabouttheeffectsofmacropolicy,economistsgenerallyproposethat

A）macropoliciesshouldbemoreactive,thelowerthelevelofunemploymentorinflation.

B）changesinmoneygrowthshouldonlybeusedforfinetuningtheeconomy,notforcorrectinglargeimbalances（suchashighinflation）.

C）moneygrowthshouldbesetatzerobyconstitutionalamendment.

D）electedofficialsshouldhavemoreinputinthedeterminationofmonetarypolicy.

E）noneoftheabove

Answer:

E

Diff:

2

6）Asuncertaintyabouttheeffectsofpolicyonoutputdecreases,wewouldexpectthat

A）policymakerswouldbemorefrequentlyimplementfinetuningpolicies.

B）policymakerswouldimplementmoreactivepolicies.

C）policymakerswouldimplementlessactivepolicies.

D）bothAandB

E）bothAandC

Answer:

D

Diff:

1

7）Whoisbestknownforarguingaboutthefinetuningofmonetarypolicy?

A）Friedman

B）Keynes

C）Modigliani

D）Greenspan

E）Bernanke

Answer:

C

Diff:

1

8）Explainwhetheruncertaintyshouldcausepolicymakerstodomoreordolesstostabilizetheeconomy.

Answer:

Asuncertaintyincreases,policymakersshoulddoless.Alternatively,moreactivepolicieswouldactuallyleadtomoreuncertainty.Thisisbasedon,asBlanchardnotes,multiplicativeuncertainty.

Diff:

1

9）WhatweresomeofthekeyfeaturesintermsoffiscalpolicyoftheStabilityandGrowthPactsignedin1997bywould-bemembersoftheEuro?

Answer:

TheStabilityandGrowthpact:

（1）committedcountriestobalancetheirbudgetsinthemediumrun;

（2）countriesavoidexcessivedeficits;and（3）imposedsanctionsoncountriesthatranexcessivedeficits.

Diff:

2

10）WhatarethenewrulesoftheEuroPlusPactadoptedin2011?

Answer:

ItrequiresmembercountriestotranslatetheSGPrulesintonationallegislation,eitherthroughaconstitutionalamendmentoraframeworklaw.

Diff:

2

11）WhatarethemainrulesoftheBudgetEnforcementActof1990?

Answer:

Thetwomainrulesare:

1）itimposedconstraintsonspending;2）itrequiresthatanewtransferprogramcouldonlybeadoptedifitcouldbeshownnottoincreasedeficitsinthefuture.

Diff:

2

12）ExplainspendingcapssetbytheBudgetEnforcementAct.

Answer:

TheBudgetEnforcementActimposedconstrainsonspending.Theseconstraints,calledspendingcaps,weresetondiscretionaryspendingforthefollowingfiveyears.Thesecapsweresetinsuchawayastorequiresmallbutsteadydecreaseindiscretionaryspending（inrealterms）.Explicitprovisionsweremadeforemergencies.

Diff:

2

21.2ExpectationsandPolicy

1）Theideathattheeconomyoperateslikeacomplicated,predictablemachineisanimportantaspectof

A）gametheory.

B）attritiontheory.

C）thetheoryofstrategicinteraction.

D）timeinconsistencytheory.

E）optimalcontroltheory.

Answer:

E

Diff:

1

2）Inmacroeconomics,gametheoryfocusesonthestrategicinteractionsbetweenwhichofthefollowinggroupsofagents?

A）individuals;firms

B）individualsandfirms;policymakers

C）policymakers;economicforecasters

D）individualsandfirms;economicforecasters

Answer:

B

Diff:

1

3）Whichofthefollowingbestdefinestimeinconsistency?

A）theincreasinginaccuracyofeconometricmodelsasthetimehorizonbecomeslonger

B）thetendencyfortheriseinoutputtobegreaterintheearlyyearsofapresident'sterm,andsmallerinthelateryears

C）theeffectsofpoliticalelectoralcyclesonthebusinesscycle

D）thetendencyforpolicymakerstodeviatefromapre-announcedoptimalpolicyonceagentsintheeconomyhaveadjustedtheirbehaviorandexpectationsbasedonthepre-announcedpolicy

E）theeffectofeconomicuncertaintyonshort-runstabilizationpolicy

Answer:

D

Diff:

1

4）Theexistenceofthetimeinconsistencyprobleminmacropolicysuggestswhichofthefollowing?

A）Usefiscalandmonetarypolicytofinetunetheeconomy.

B）Reducetheindependenceofthecentralbank.

C）Appointsomeonewhoismoreconservative（economically）thantherestofthegovernmenttoheadthecentralbank.

D）Intervenefrequentlyintheforeignexchangemarket.

E）Eliminaterationalexpectationsfromeconometricmodelsusedforforecasting.

Answer:

C

Diff:

1

5）OncepeoplebelievetheFed'scommitmenttokeepunemploymentatthenaturalrate,theFedcanreduceunemploymentbelowthenaturalrate

A）inboththeshortrunandthelongrun.

B）inboththeshortrunandthelongrun,butonlyafterchangingpeoples'expectations.

C）inthelongrun,butnottheshortrun.

D）intheshortrun,butnotinthelongrun.

E）noneoftheabove

Answer:

D

Diff:

1

6）Tosolvethe"timeinconsistency"probleminmacropolicy,anationmaywellhaveto

A）restrictitselfinthepresentfromtakingcertainpolicymovesinthefuture.

B）liftallrestrictionsonfuturepolicymoves.

C）presentpolicymovestothepublic,forexample,inareferendum.

D）usethecourtstosettlepolicydisputes.

E）makethecentralbankmoreresponsivetothepopularwill.

Answer:

A

Diff:

1

7）Researchindicatesthatthemoreindependentthecentralbank,

A）thesmallerthebudgetdeficit.

B）thehigherthenominalinterestrate.

C）thelowertherateofinflation.

D）thelargerthetimeinconsistencyprobleminmakingpolicy.

E）thegreaterthelikelihoodofa"warofattrition"overpolicy.

Answer:

C

Diff:

1

8）Onesurprisinginsightfromviewingpolicyasa"game"isthat

A）centralbankersshouldprojectanimageofbeingconservativeoneconomicpolicymatters,regardlessoftheirpersonalviews.

B）itismoredifficulttocontrolinflationwhenthecentralbankishighlyindependent.

C）uncertaintyovertheimpactofpolicymakeslittledifferenceindesigninganoptimalpolicy.

D）moneygrowthhaslittleornoimpactoninflationinthelongrun.

E）decreasingmoneygrowthmaysubstantiallyincreasetherateofinflationinthelongrun.

Answer:

A

Diff:

1

9）Whichofthefollowingisthemostpowerfulargumentforputtingrestraintsonpolicymakers（asopposedtoself-restraintbypolicymakersthemselves）?

A）timeinconsistency

B）uncertaintyaboutOkun'scoefficient

C）uncertaintyaboutthenaturalrateofunemployment

D）uncertaintyaboutthetimingofpolicyimpacts

E）disagreementsabouttheproperstructureofaneconometricmodel

Answer:

A

Diff:

1

10）Todealwiththetimeinconsistencyproblemassociatedwithmonetarypolicy,somehavesuggestedthat

A）theheadofthecentralbankbechosenbyelection.

B）thecentralbankimplementexpansionarymonetarypolicypriortoelectionyears.

C）electedofficialsshouldhaveadirectinfluenceontheimplementationofmonetarypolicy.

D）alloftheabove

E）noneoftheabove

Answer:

E

Diff:

1

11）ResearchforanumberofOECDcountriessuggeststhatinflationwillbelower

A）themoreindependentthecentralbank.

B）thelessindependentthecentralbank.

C）iftheheadsofcentralbanksarechosenbyelection.

D）whenthetermsoftheheadsofcentralbankscoincidewiththetermsofelectedofficials.

Answer:

A

Diff:

1

12）Gametheoryanalysisofmacropolicysuggeststhatasvotersbecomemoreshort-sighted

A）policymakerswillbetemptedtoraisetaxes.

B）policymakerswillbeforcedtobalancethebudget.

C）policymakerswilladoptpoliciestodaytoachievebalancedbudgetsinthefuture.

D）alloftheabove

E）noneoftheabove

Answer:

E

Diff:

1

13）Whichofthetheoryisbettertothinkaboutpolicy?

A）gametheory

B）optimalcontroltheory

C）expectationstheory

D）noneoftheabove

Answer:

A

Diff:

1

14）Thehostagetakingexamplewasdevelopedby

A）JohnNash.

B）KydlandandPrescott.

C）JohnHarsanyi.

D）ReinhardSelten.

Answer:

B

Diff:

1

15）Whichofthefollowingisnotanexampleoftheissueoftimeinconsistency?

A）acentralbankannouncedtomaintainlowinflationandatthesametimeincreasedmoneysupply

B）agovernmentstatedthattheywillnotnegotiatewithhostageta