UC Berkeley Econ 100B UGBA 101B Final Exam 2023/20-24 verified to pass

UC Berkeley Econ 100B UGBA 101B Final ExamRising inflation has no additional effect on an economy's well-being if: - correct answer Relative prices are unaffected, It is universally and accurately anticipated, The nominal rate of interest for both savers and borrowers rises by an amount just equal to the rate of inflation. Unanticipated increases in inflation will hurt ________ and help ________. - correct answer pensioners; borrowers "Shoe-leather costs" refer to: - correct answer The inconvenience imposed by higher interest rates. The classic loser from an unanticipated increase in inflation is: - correct answer The saver who earns less real interest than expected. Real income is redistributed from ________ in the case of an ________ increase in inflation. - correct answer creditors to debtors, unanticipated Real income is redistributed from ________ in the case of ________ deflation. - correct answer debtors to creditors, unanticipated Which of the following would NOT reduce the natural rate of unemployment? - correct answer A tax cut, Imposing wage or price controls, An increase in government expenditures. Many extended periods of high actual unemployment above the natural rate have been the result of: - correct answer Deliberate government anti-inflationary policy. "Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing: - correct answer Frictional unemployment The elimination of hourly rate assembly line jobs for unskilled workers by robots is an example of: - correct answer Mismatch unemployment. The layoff of workers in virtually all industries during the 1982 recession is an example of the classification of workers as: - correct answer Cyclically unemployed. If other things are constant, the longer the average unemployed worker searches before accepting a job: - correct answer The higher will be the measured unemployment rate. When mismatch unemployment characterizes an economy: - correct answer Monetary and fiscal policies to raise AD are not the appropriate government action. A major difference between the costs of unemployment and the costs of inflation is that: - correct answer Unemployment costs are concentrated among a few people while inflation costs are distributed more broadly across the entire population. Suppose that the central bank conducts a massive open market sale of government securities but the money supply does not change. This could be due to: - correct answer Commercial banks decreasing their excess reserves. Suppose that the central bank sets the required reserve ratio at 100% and banks hold no excess reserves. It then sells $100 million of government securities in the open market. As a result of this open market operation: - correct answer The money supply declines by $100 million. Nonconventional monetary policy attempts to reduce financial frictions by: - correct answer Reducing the expected future short-term interest rate, Purchasing long-term assets which raises their price and reduces the credit spread, Correcting the shortage of liquidity that has made it costly for businesses to invest. The key difference between "quantitative easing" and "credit easing" is that: - correct answer The latter refers to a substantial change in the composition of the central bank's balance sheet. In the absence of changes in financial frictions: - correct answer Interest rates for different borrowers move closely together.