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Department of Economics, University of Toronto
... A has both a higher inflation rate and a higher nominal interest rate A has a lower inflation rate and a higher nominal interest rate A has a higher inflation rate and a lower nominal interest rate A has both a lower inflation rate and a lower nominal interest rate ...
... A has both a higher inflation rate and a higher nominal interest rate A has a lower inflation rate and a higher nominal interest rate A has a higher inflation rate and a lower nominal interest rate A has both a lower inflation rate and a lower nominal interest rate ...
Answer Key
... The purpose for holding money is that it is a useful and convenient tool for conducting transactions. An increase in the nominal interest rate will increase the opportunity cost of holding wealth in the form of money rather than bonds. A higher interest rate will provide incentives to households to ...
... The purpose for holding money is that it is a useful and convenient tool for conducting transactions. An increase in the nominal interest rate will increase the opportunity cost of holding wealth in the form of money rather than bonds. A higher interest rate will provide incentives to households to ...
Economics 215
... 7. Nominal GDP in year 2000 was HK$1.288 Trillion; nominal GDP in 2001 was HK$1.278 trillion. Real GDP in 2001 was HK$1.297 Trillion (measured in year 2000 dollars). If we measure nominal prices with the GDP deflator, we can say that: a. The inflation rate in year 2001 is positive and the ex post r ...
... 7. Nominal GDP in year 2000 was HK$1.288 Trillion; nominal GDP in 2001 was HK$1.278 trillion. Real GDP in 2001 was HK$1.297 Trillion (measured in year 2000 dollars). If we measure nominal prices with the GDP deflator, we can say that: a. The inflation rate in year 2001 is positive and the ex post r ...
2004 2005 Price Quantity Price Quantity Oranges DVD players Unit
... 0. Mark ‘d’ as the answer to question 27 on your answer sheet. Otherwise your exam will be graded according to the key that gives the minimum score for your answers. 1. If marginal cost is greater than average total cost then a. profits are increasing. b. economies of scale are becoming greater. c. ...
... 0. Mark ‘d’ as the answer to question 27 on your answer sheet. Otherwise your exam will be graded according to the key that gives the minimum score for your answers. 1. If marginal cost is greater than average total cost then a. profits are increasing. b. economies of scale are becoming greater. c. ...
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 24
... maintenance crew at a wage rate of Rs.60/- per hour for a 40-hour week. Overtime work is always available at an hourly rate of 1.5 times the regular wage rate. For the coming summer, he has been offered the pizza stand at the college canteen building, which would have to be open 10 hours per day, si ...
... maintenance crew at a wage rate of Rs.60/- per hour for a 40-hour week. Overtime work is always available at an hourly rate of 1.5 times the regular wage rate. For the coming summer, he has been offered the pizza stand at the college canteen building, which would have to be open 10 hours per day, si ...
Open Economy
... Aggregate Demand – Aggregate Supply and Inflation • Aggregate Demand – Shows different combinations of the price level and real output at which the money and commodity markets are both in equilibrium – Summarizes the effects of changing prices on the level of real income. – Is derived from the IS-L ...
... Aggregate Demand – Aggregate Supply and Inflation • Aggregate Demand – Shows different combinations of the price level and real output at which the money and commodity markets are both in equilibrium – Summarizes the effects of changing prices on the level of real income. – Is derived from the IS-L ...
Review of aggregate production function
... - constant returns to scale - two factors (K, L) - single output used for both C and I: Y = C + I - no technological change to begin with - in next model, labor-augmenting technological change 5. Change of variable to transform to one-equation model: k = K/L = capital-labor ratio Y = F(K, L) = LF(K/ ...
... - constant returns to scale - two factors (K, L) - single output used for both C and I: Y = C + I - no technological change to begin with - in next model, labor-augmenting technological change 5. Change of variable to transform to one-equation model: k = K/L = capital-labor ratio Y = F(K, L) = LF(K/ ...
14.02 Principles of Macroeconomics Spring 03 Quiz 2 Thursday, April 10, 2003
... b) the aggregate demand equation and inflation expectations set equal to previous period inflation c) the aggregate supply equation and inflation expectations set equal to previous period inflation d) the aggregate demand equation and inflation expectations set to zero 8. The modified Phillips curve ...
... b) the aggregate demand equation and inflation expectations set equal to previous period inflation c) the aggregate supply equation and inflation expectations set equal to previous period inflation d) the aggregate demand equation and inflation expectations set to zero 8. The modified Phillips curve ...
business
... making economic decisions. Price elasticity of demand and the law of demand dictate how we adjust prices in order to maximize revenue for example Slide 8 The science of economics is divided into two fields; microeconomics and macroeconomics. Microeconomics emphasizes decision-making by individuals a ...
... making economic decisions. Price elasticity of demand and the law of demand dictate how we adjust prices in order to maximize revenue for example Slide 8 The science of economics is divided into two fields; microeconomics and macroeconomics. Microeconomics emphasizes decision-making by individuals a ...
Mandel_-_growth
... Finally, there is, as several authors point out, also a necessary relationship between capitals stocks and the economic growth induced by productive investments. If the turnover of fixed capital remains constant, the fraction of total investment which just maintains the stock of total social capital ...
... Finally, there is, as several authors point out, also a necessary relationship between capitals stocks and the economic growth induced by productive investments. If the turnover of fixed capital remains constant, the fraction of total investment which just maintains the stock of total social capital ...
Economics 259 Final Exam Spring 2016 Name: Before beginning
... 11. Starting from long-run equilibrium, if the velocity of money increases (due to, for example, the invention of automatic teller machines), the Fed might be able to stabilize output by: a. decreasing the money supply. b. increasing the money supply. c. decreasing the price level. d. increasing th ...
... 11. Starting from long-run equilibrium, if the velocity of money increases (due to, for example, the invention of automatic teller machines), the Fed might be able to stabilize output by: a. decreasing the money supply. b. increasing the money supply. c. decreasing the price level. d. increasing th ...
Introduction to Macroeconomics · Final exam · 22 June 2015 1
... determined in the currency market. (c) The liquidity market model is not useful to determine the value of the unemployment rate but it is to represent the effect of open market operations. (d) Taylor’s rule is an equation stating how a central bank would set the interest rate. 7. An aggregate demand ...
... determined in the currency market. (c) The liquidity market model is not useful to determine the value of the unemployment rate but it is to represent the effect of open market operations. (d) Taylor’s rule is an equation stating how a central bank would set the interest rate. 7. An aggregate demand ...
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 16
... Q. 26) Busch Gardens recently announced that it will increase the entrance fees at its theme parks in order to increase park revenues. Busch Gardens must believe that... A. the demand for theme park attractions is elastic B. theme park goers are very responsive to price changes C. demand is unitary ...
... Q. 26) Busch Gardens recently announced that it will increase the entrance fees at its theme parks in order to increase park revenues. Busch Gardens must believe that... A. the demand for theme park attractions is elastic B. theme park goers are very responsive to price changes C. demand is unitary ...
Exchange rates under sticky prices: The Dornbusch (1976
... - real exchange rate appreciation (the exchange rate falls from s to s ′ ) - exports are reduced by the amount of the rise in government expenditure The nominal exchange rate s jumps to the new saddle path (reducing exports), and continues to appreciate; there is no overshooting. The rise in demand ...
... - real exchange rate appreciation (the exchange rate falls from s to s ′ ) - exports are reduced by the amount of the rise in government expenditure The nominal exchange rate s jumps to the new saddle path (reducing exports), and continues to appreciate; there is no overshooting. The rise in demand ...
Macroeconomics Lecture 2 National Income: Its Production
... • Marginal propensity to consume (MPC): is the amount consumption changes when disposable income increases by one dollar. 0
... • Marginal propensity to consume (MPC): is the amount consumption changes when disposable income increases by one dollar. 0