Reading 28: Monetary Policy - LOS c ～ Q1-3

答案和详解如下：

1.Which of the following statements is most accurate? In response to a cost-push inflation shock, a feedback-rule policy:

A)   would call for a decrease in money supply growth.

B)   would call for an increase in money supply growth.

C)   could call for a decrease or an increase in money supply growth.

D)   would not be affected by a cost-push inflation shock.

The correct answer was C)    

In response to a cost-push inflation shock, a feedback-rule policy could call for either a decrease or an increase in money supply growth. Which is called for would depend upon the focal point of the policy. If the focal point is GDP, the policy would call for an increase. If the focal point is price level, the policy would call for a decrease.

2.Which of the following statements is most accurate? A cost-push inflation shock:

A)   often occurs because of an increase in short-run aggregate supply.

B)   results from excess short-run aggregate demand.

C)   often occurs because of an increase in the long-run aggregate supply.

D)   typically results from a significant price increase in a production input.

The correct answer was D)    

Cost-push inflation typically results from a significant price increase in a production input that causes a decrease in short-run aggregate supply.

3.Which of the following statements is most accurate? In response to a productivity shock that decreases potential real GDP growth and increases the price level, a feedback-rule policy:

A)   would call for a decrease in money supply growth.

B)   would call for an increase in money supply growth.

C)   would not call for any change in money supply growth.

D)   could call for a decrease or an increase in money supply growth.

The correct answer was D)

In response to a productivity shock, a feedback-rule policy could call for either a decrease or an increase in money supply growth. Which is called for would depend upon the focal point of the policy. If the focal point is GDP, the policy would call for an increase. If the focal point is price level, the policy would call for a decrease.