ECO320 Money & Banking Money & Banking Quiz 8


The Fed uses ____ monetary policy to cause the economy to grow faster in the short run; ____ in the money supply is an example of such a policy.
The idea that policymakers may not immediately get up-to-date statistics on economic variables is known as the ____ lag.
Under contractionary monetary policy, the unemployment rate is ____ in the short run and inflation is ____ in the long run.
The Fed’s loss function is another name for the Fed’s
Under contractionary monetary policy, the money supply would ____ and the federal funds rate would ____ in the short run.
According to the CBO, the current natural rate of unemployment is about
The time it takes for the FOMC to choose a course of action is known as the ____ lag.
Another name for the ideal inflation rate is the
Which of the following is not a cost of anticipated inflation but arises only if inflation is unanticipated?
Okun’s Law relates
The sum over time of the squared output gap plus a weight times the squared inflation gap represents the
Under expansionary monetary policy, the unemployment rate is ____ in the short run and inflation is ____ in the long run.
The idea that policymakers may not immediately understand the state of the economy is known as the ____ lag.
Data on potential output come from
The actual inflation rate minus the ideal inflation rate is known as

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ECO320 Money & Banking Money & Banking Quiz 8