1081 Question + Answers of the CFA exam

Apr 30th, 2015
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Hi there, CFA fellow, here you are. You see, it doesn't need to be an expensive prep coure to get first class preparation for the CFA exams.

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www.cfa-aficionado.cjb.netwww.marbella.to/cfa-aficionado1081 Questions +Answersof theCFA EXAMLevel 1Study Session :Macroeconomics(Part B)Introduction by the Author :Hi there, CFA fellows, here you are . You see , it doesnt need to be anexpensive prep course to get first class preparation for the CFA exams.The following questions are original CFA AIMR questions and not justcomposed by prep course providers. They all come with a clear answer.In order to understand why the questions are commented by answer iscorrect / incorrect it is important to know that all questions haveautomatically been responded with the first (and only the first ) answer.Your CFA-Aficionadocfa-aficionado@softhome.netcfa-aficionado@flashmail.comAnd now here we go :An economy is currently operating at full employment, with an inflation rate of 6%. The Central Bankadopts an inflationary measure consistent with an inflation rate of 8% but people anticipate an inflationof 7%. Then, the unemployment in the short run will be ________ the natural rate, as predicted by theRational Expectations Model.* could be above or below.* same as* below* aboveThat answer is incorrect.Correct answer:belowThe short-run equilibrium is affected by the accuracy of the predictions made by decision-makers.Since workers under-estimate the future inflation resulting from the changed policy, they will settle forlower wages than those consistent with the actual inflation. Consequently

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