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macyellow3spring2013
macyellow3spring2013

... 3. Politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections. 4. Despite good intentions, various timing lags will cause fiscal policy to reinforce the business cycle. 6. Assume the government purposely incurs a budget deficit that is financed b ...
Nominal versus Real
Nominal versus Real

macyellow3fall2011
macyellow3fall2011

... 3. Politicians will use fiscal policy to cause output, real incomes, and employment to be rising prior to elections. 4. Despite good intentions, various timing lags will cause fiscal policy to reinforce the business cycle. 6. Assume the government purposely incurs a budget deficit that is financed b ...
Economics 302
Economics 302

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of monetary policy

... cash (the transfer of funds from the Fed to the bank). These funds are held by banks that can then extend more loans and this increases the money supply by a multiple of the original amount. The money supply is also expanded when a commercial bank purchases securities from the public because the fun ...
Chapter 1 Economic Principles and Cycles
Chapter 1 Economic Principles and Cycles

... to be passed on to lower economic groups ...
EC 102.07-08-09 Exercises for Chapter 34 SPRING 2006 For the
EC 102.07-08-09 Exercises for Chapter 34 SPRING 2006 For the

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... paying with a VISA credit card. VISA uses a checking account in France to make payments. ...
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Financial Education for College Access and Success

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System of National Accounts

... not just wages) and capital (produced capital and environment (land, subsoil assets, forests, etc.) plus taxes on production less subsidies. Returns to ownership of property (such as financial assets (interest, dividends) and environment (rent) included with returns to capital (these returns capture ...
Examination Aids allowed
Examination Aids allowed

... 1. (10%)Suppose that initially the economy is located at the long-run equilibrium and the national income is at the full employment level: the AD, SAS and LAS curves intersect all at one point. Now suppose that there occurs a negative supply shock such as ‘oil shocks’. What will happen to the price ...
question 1 - Institute of Bankers in Malawi
question 1 - Institute of Bankers in Malawi

... people to seek wage demands that give them a 'real' increase, i.e. is above inflation. Since inflation has risen, people could reasonably be expected to build an anticipated inflation rate into their wage demands. If these wage demands were granted (and in the days of powerful trade unions and witho ...
Business cycle Macro activity
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... Instructions: Have students draw a BIG business cycle on poster paper, on the sidewalk, on banner paper in the hallway, etc. In partners have them place these cards (cut them out!) where they belong on the business cycle. They will have to think about the concepts (DOK2-3 here) in order to place th ...
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Slide 1

Inflation - ThaparNotes
Inflation - ThaparNotes

... Inflation • Inflation is the percentage change in the value of the Price Index (PI) on a year-on year basis. • Various indices to measure inflation are: a) WPI (Wholesale Price Index) b) CPI (Consumer Price Index) • The basic cause of inflation is that the circulation of money in the market is more ...
GENERAL ECONOMICS­II    UNIVERSITY OF CALICUT  SCHOOL OF DISTANCE EDUCATION 
GENERAL ECONOMICS­II    UNIVERSITY OF CALICUT  SCHOOL OF DISTANCE EDUCATION 

... 15. In all balance of payment accounts, there are a fictitious head of account called:  a) Invisibles  c) Reserves  b) Deficits  d) Errors and omissions  ...
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Problem Session I

... or service, which is an item that is produced by one rm, bought by another rm, and used as a component of a nal good or service. In this case, paper is an intermediate good, which is used to "produce" your economics textbook. Therefore, the purchase of paper by the company that printed your book ...
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The Simplest Model of Financial Crisis

... economy, perturbed by noise. This is the simplest way to integrate chaos theory to model financial crises, causing business cycles to emerge. Unlike standard models, the proposed theory proves that monetary policy can destabilize financial markets by raising interest rates too high, when preventing ...
28.1 money and the interest rate
28.1 money and the interest rate

... The opportunity cost of holding money is the interest forgone on an alternative asset. Opportunity Cost: Nominal Interest is a Real Cost The opportunity cost of holding money is the nominal interest because it is the sum of the real interest rate on an alternative asset plus the expected inflation r ...
The IS Schedule
The IS Schedule

Prof. Ashenmiller:  Economics 101: Exam 3 Sample Questions
Prof. Ashenmiller: Economics 101: Exam 3 Sample Questions

Loanable Funds Market
Loanable Funds Market

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... typically gold, on demand. • In modern economies, paper money is generally issued by a central bank run by the government. • The Federal Reserve is the central bank of the United States. However, money issued by the Federal Reserve is no longer exchangeable for gold; nor is any current world currenc ...
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Preparing for the AP Macroeconomics Test Exam Content The AP

... Rule: Bond prices are inversely related to interest rates Adds depth to the reasons that interest rates change Expansionary fiscal policy (G up, AD up) leads to deficit spending, which causes the government to sell bonds (increasing the supply in this graph), causing the price of bonds to drop and t ...
Monetary Policy Instruments for Developing
Monetary Policy Instruments for Developing

... ycaru ago. While other policy and technological changes have also played a part in developing money markets, it can be said that the more flexible techniques of monetary management have required and encouraged these developments. ...
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Real bills doctrine

The real bills doctrine asserts that money should be issued in exchange for short-term real bills of adequate value. This theory is in opposition to the quantity theory of money which states that money supply has a direct, positive relationship with the price level.
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