1. In the RBC model-- if we start at a point of long-run equilibrium and the Fed undertakes quantitative easing what is the predicted result?a) Inflation and real growth to decreaseb) Inflation and real growth in increasec) Inflation to increase and real growth to remain unchangedd) Inflation to decrease and real growth to remain unchangede) Inflation and real growth to remain unchanged.  2. An increase in the money supply will increase real GDP growth in the short run inA) the Real Business Cycle model.B) the New Keynesian model.C) Neither the Real Business Cycle model nor the New Keynesian model.D) Both the Real Business Cycle model and the New Keynesian model.

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Asked Jun 13, 2019
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1. In the RBC model-- if we start at a point of long-run equilibrium and the Fed undertakes quantitative easing what is the predicted result?

a) Inflation and real growth to decrease

b) Inflation and real growth in increase

c) Inflation to increase and real growth to remain unchanged

d) Inflation to decrease and real growth to remain unchanged

e) Inflation and real growth to remain unchanged.

 

 

2. An increase in the money supply will increase real GDP growth in the short run in

A) the Real Business Cycle model.

B) the New Keynesian model.

C) Neither the Real Business Cycle model nor the New Keynesian model.

D) Both the Real Business Cycle model and the New Keynesian model.

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