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Assume adaptive expectations. To end an inflation, a central bank should [Check all that apply]

If the European Central bank cuts long-term interest rates in the Eurozone, then the United States will be better off.

Answer 4 out of the 5 next short answer questions (Worth 12pts each)

Assume purchasing power parity (PPP) holds. If a Big Mac costs $4 in the United States and 10 Mexican pesos trade for $1 US dollar, then a Big Mac in Mexico should cost

Standard measures of unemployment understate true unemployment.

Biden’s stimulus will raise employment in the EU.  (Hint: Does it matter if the Fed has offsetting or accommodating monetary policy?)

GDP growth overstates the change in well-being in a nation when [check all that apply]

The multiplier on exogenous increases in investment is larger if government increases spending automatically in recessions.

Real interest rates are high when

The error shown is a/an: