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multiple choice
multiple choice

... 35. Initially the nominal interest rate is 8 percent and the inflation rate is 5 percent. People know that the inflation rate increases to 10 percent. What is the new nominal interest rate? (A) 13 percent (B) 8 percent (C) 3 percent (D) 11 percent 36. Moving along a short-run Phillips curve, ______ ...
multiple choice
multiple choice

... 35. Initially the nominal interest rate is 8 percent and the inflation rate is 5 percent. People know that the inflation rate increases to 10 percent. What is the new nominal interest rate? (A) 13 percent (B) 8 percent (C) 3 percent (D) 11 percent 36. Moving along a short-run Phillips curve, ______ ...
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... 2. Read and follow all instructions/directions carefully. An inability to follow instructions/directions will result in points being deducted. 3. All problems sets submitted must be stapled, handwritten, and include the cover page. 4. Only problem sets submitted in person and/or in class will be acc ...
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... situations that might lead to this “passive” supply response. The first is when the economy has many unemployed resources, both labour and capital. In this case, firms have excess capacity and they can increase output easily without driving up unit costs. The second situation is where firms are pric ...
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... 1. Benchmarks are addressed primarily in numerical order. Exceptions are the economic reasoning and think skills standards which pervade the entirety of the course, they have been placed in content areas where they are best demonstrated. Personal finance standards are addressed throughout the cours ...
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... is the income that is gained by governments because of taxation of households and firms. The term direct tax generally means a tax paid directly to the government by the persons or firms on whom it is imposed. An indirect tax may increase the price of a good so that consumers are actually paying the ...
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... The discovery of oil is a classic case of natural resources driving up the GNP of a region such as the Middle-East. Similarly, in rain forests around the world, harvesting trees has had a positive impact on the GNP. The Federal Reserve’s frequent buying and selling of government securities (bonds), ...
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...  After an increase in interest rates shifts the AD curve, real output first falls, and then returns to the natural level after the AS curve shifts  These estimates show that the process involves a total lag of 1 to 3 years, or longer  Different studies, based on different periods and methods, do ...
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... 1. Deficit financed by M leads to AD shifts out, as in Fig 28.2 s 2. If deficit persists, M  continually and get P  continually, i.e.,  as in Fig 28.2 Conclusion: Deficit  , only if it is 1. Persistent 2. Financed by money creation rather than by bonds ...
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Macroeconomics - University of Oxford

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PDF Download

... stood clearly above its long-term average. The labour market situation has also remained surprinsingly robust, partly as a result of the flexible use of temporary employment and the depletion of overtime accounts. In the meantime, however, job offers have decreased and reports of shorter working hou ...
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... Economics for Citizenship • The study of economics helps us to become better decision makers–both in our personal lives and in the voting booths. • The study of economics will not provide you with clear-cut answers to all questions, of course, but it will give you a better understanding of the issu ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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