ECS4861
Assignment 2 QUIZ 2025
Detailed Solutions, References & Explanations
Unique number: 390432
Due Date: 1 July 2025, 11:00 PM
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, ECS4861-25-Y Welcome Message Assessment 2
QUIZ
Started on Thursday, 19 June 2025, 8:56 PM
State Finished
Completed on Thursday, 19 June 2025, 9:57 PM
Time taken 1 hour
Marks 46.00/50.00
Grade 92.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following propositions is compatible with new Keynesian economics?
Rational expectations.
The weak version of Say's Law.
Monopolistic competition.
Correct. New Keynesians emphasise the role played by various market imperfections contributing to wage and price
rigidities and the effect this may have on the economy's adjustment to changes in aggregate demand and supply..
Question 2
Correct
Mark 1.00 out of 1.00
How do new classical models differ from orthodox monetarism?
New classical models assume rational rather than adaptive expectations.
New classical models do not permit 'money illusion', even in the short run.
In new classical models, systematic changes in monetary policy have no effect on real output.
All the statements are correct.
, Question 3
Incorrect
Mark 0.00 out of 1.00
Involuntary unemployment increases:
due to nominal wage rigidity at w0.
because the lower real wage increases the supply of labour.
because the decrease in output lowers the demand for labour.
All the statements are correct.
Question 4
Correct
Mark 1.00 out of 1.00
The strong version of the rational expectations hypothesis implies that workers, consumers and firms:
make choices based on perfect information.
do not make forecast errors based on publicly available information.
have perfect foresight.
form expectations that coincide with the outcomes predicted by the relevant model of the economy.
Question 5
Correct
Mark 1.00 out of 1.00
What do new classical models have in common with the old classical model?
The classical dichotomy.
Workers choose to be unemployed.
Perfectly flexible wages and prices.
All the above.
Assignment 2 QUIZ 2025
Detailed Solutions, References & Explanations
Unique number: 390432
Due Date: 1 July 2025, 11:00 PM
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, ECS4861-25-Y Welcome Message Assessment 2
QUIZ
Started on Thursday, 19 June 2025, 8:56 PM
State Finished
Completed on Thursday, 19 June 2025, 9:57 PM
Time taken 1 hour
Marks 46.00/50.00
Grade 92.00 out of 100.00
Question 1
Correct
Mark 1.00 out of 1.00
Which of the following propositions is compatible with new Keynesian economics?
Rational expectations.
The weak version of Say's Law.
Monopolistic competition.
Correct. New Keynesians emphasise the role played by various market imperfections contributing to wage and price
rigidities and the effect this may have on the economy's adjustment to changes in aggregate demand and supply..
Question 2
Correct
Mark 1.00 out of 1.00
How do new classical models differ from orthodox monetarism?
New classical models assume rational rather than adaptive expectations.
New classical models do not permit 'money illusion', even in the short run.
In new classical models, systematic changes in monetary policy have no effect on real output.
All the statements are correct.
, Question 3
Incorrect
Mark 0.00 out of 1.00
Involuntary unemployment increases:
due to nominal wage rigidity at w0.
because the lower real wage increases the supply of labour.
because the decrease in output lowers the demand for labour.
All the statements are correct.
Question 4
Correct
Mark 1.00 out of 1.00
The strong version of the rational expectations hypothesis implies that workers, consumers and firms:
make choices based on perfect information.
do not make forecast errors based on publicly available information.
have perfect foresight.
form expectations that coincide with the outcomes predicted by the relevant model of the economy.
Question 5
Correct
Mark 1.00 out of 1.00
What do new classical models have in common with the old classical model?
The classical dichotomy.
Workers choose to be unemployed.
Perfectly flexible wages and prices.
All the above.
