AD/AS FRQs answers
... (c) Assume that the price level in New Zealand rises. Given your answer to part (b)(ii), explain what will happen to real interest rates. Indeterminate. Increase in MD increases rates, but not necessarily overcoming increase in prices. (d) Although recovering, Australia remains in recession and its ...
... (c) Assume that the price level in New Zealand rises. Given your answer to part (b)(ii), explain what will happen to real interest rates. Indeterminate. Increase in MD increases rates, but not necessarily overcoming increase in prices. (d) Although recovering, Australia remains in recession and its ...
Chpt 5
... lead people to expect a higher price level in the future. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
... lead people to expect a higher price level in the future. Copyright © 2007 Pearson Addison-Wesley. All rights reserved. ...
Lecture 2: New Keynesian Model in Continuous Time
... • Simple framework to think about relationship between ...
... • Simple framework to think about relationship between ...
AP Macroeconomics AP Exam Date: Wednesday, May 10, 2017
... 2. Distinguish between opportunity cost, scarcity, and tradeoffs. 3. Distinguish between macroeconomics and microeconomics. 4. List the three basic economic questions. 5. Define comparative advantage and specialization and benefits of exchange. 6. Use a production possibilities curve to demonstrate ...
... 2. Distinguish between opportunity cost, scarcity, and tradeoffs. 3. Distinguish between macroeconomics and microeconomics. 4. List the three basic economic questions. 5. Define comparative advantage and specialization and benefits of exchange. 6. Use a production possibilities curve to demonstrate ...
macroeconomic principles (econ
... employment. There is debate about how fast the economy adjusts and whether the government can speed up the process. We will always start in long-run equilibrium and shock the economy. We will adjust back to full employment. 1. Expansion or boom caused by monetary policy that results in higher prices ...
... employment. There is debate about how fast the economy adjusts and whether the government can speed up the process. We will always start in long-run equilibrium and shock the economy. We will adjust back to full employment. 1. Expansion or boom caused by monetary policy that results in higher prices ...
ECON 3080-001 Intermediate Macroeconomics
... This course will provide a comprehensive framework for analyzing the behavior of aggregate economies. Topics will include the determinants of output, unemployment, and inflation, an analysis of short-run fluctuations in economic activity, and theories of long-run economic growth. Throughout our disc ...
... This course will provide a comprehensive framework for analyzing the behavior of aggregate economies. Topics will include the determinants of output, unemployment, and inflation, an analysis of short-run fluctuations in economic activity, and theories of long-run economic growth. Throughout our disc ...
Chapter 15 - AP Macroeconomics
... • crowding out The reduction in investment, or other component of GDP, in the long run caused by an increase in government spending. ...
... • crowding out The reduction in investment, or other component of GDP, in the long run caused by an increase in government spending. ...
Unit 3 concept objectives outline
... State three basic causes of changes in aggregate supply differentiating between leftward and rightward shifts of the curve. Topics/Concepts Aggregate demand - components Aggregate supply short-run long-run (Keynesian vs. neo-classical approach) Full employment level of national income Equilibrium le ...
... State three basic causes of changes in aggregate supply differentiating between leftward and rightward shifts of the curve. Topics/Concepts Aggregate demand - components Aggregate supply short-run long-run (Keynesian vs. neo-classical approach) Full employment level of national income Equilibrium le ...
- FRASER (St.Louis Fed)
... Before I talk about the potential sources of risk to the economy, let me first try to clarify what the Fed means by “asymmetric bias.” The term asymmetric is economic shorthand for “tilt” or “leaning.” It simply means that of the two prevailing risks to monetary policy objectives—the risk that econo ...
... Before I talk about the potential sources of risk to the economy, let me first try to clarify what the Fed means by “asymmetric bias.” The term asymmetric is economic shorthand for “tilt” or “leaning.” It simply means that of the two prevailing risks to monetary policy objectives—the risk that econo ...
APS6
... at 4% inflation before when U*=5%, then now the SR-PC with expected inflation = 4% will cross the new LR-PC which is vertical atU* = 6%. c. The SR-PC shifts up and to the right. No change in the long run Phillips curve. 3. Explain what NAIRU represents. Explain what happens if the actual unemploymen ...
... at 4% inflation before when U*=5%, then now the SR-PC with expected inflation = 4% will cross the new LR-PC which is vertical atU* = 6%. c. The SR-PC shifts up and to the right. No change in the long run Phillips curve. 3. Explain what NAIRU represents. Explain what happens if the actual unemploymen ...
AD curve - MIT OpenCourseWare
... AS Curve in Short Run • Completely Flexible prices (classical view) ...
... AS Curve in Short Run • Completely Flexible prices (classical view) ...
Chapter 14 - Department of Agricultural Economics
... When describing growth in the economy on the nightly newscast, the newscaster will refer to the growth in real GDP after adjustments for inflation. In the above example, real GDP grew over the 1992-1999 period, but not at the rate implied by comparisons in nominal terms. Page 347 ...
... When describing growth in the economy on the nightly newscast, the newscaster will refer to the growth in real GDP after adjustments for inflation. In the above example, real GDP grew over the 1992-1999 period, but not at the rate implied by comparisons in nominal terms. Page 347 ...
The Rally that started on the Ides of March 09
... prices down to near 4 year lows. Even of late oil prices are seen softening as a result of excess supply. Finally and while wage demands in the USA have remained low overall, some sectors are seeing their first serious increases in years. The common thread to these factors is that many if not all co ...
... prices down to near 4 year lows. Even of late oil prices are seen softening as a result of excess supply. Finally and while wage demands in the USA have remained low overall, some sectors are seeing their first serious increases in years. The common thread to these factors is that many if not all co ...
Practice Test Here… - Greece Social Studies
... 24. What are the forces that can cause aggregate demand to shift? 25. What are the forces that can cause aggregate supply to shift? 26. Diagram the business cycle and explain what happens to prices, unemployment, interest rates, inventories and aggregate demand in each phase. 27. Explain the relatio ...
... 24. What are the forces that can cause aggregate demand to shift? 25. What are the forces that can cause aggregate supply to shift? 26. Diagram the business cycle and explain what happens to prices, unemployment, interest rates, inventories and aggregate demand in each phase. 27. Explain the relatio ...
9708 November 2012 Paper 21 Mark Scheme
... A relatively high rate of inflation will make a country less competitive in international trade. Exports may fall, imports may rise and the current balance may worsen. International confidence in the currency may fall reducing investment and the financial flow may become adverse. There will be less ...
... A relatively high rate of inflation will make a country less competitive in international trade. Exports may fall, imports may rise and the current balance may worsen. International confidence in the currency may fall reducing investment and the financial flow may become adverse. There will be less ...
What Is Monetary Policy?
... Changing monetary policy has important effects on aggregate demand, and thus on both output and prices. There are a number of ways in which policy actions get transmitted to the real economy (Ireland, 2008). The one people traditionally focus on is the interest rate channel. If the central bank tigh ...
... Changing monetary policy has important effects on aggregate demand, and thus on both output and prices. There are a number of ways in which policy actions get transmitted to the real economy (Ireland, 2008). The one people traditionally focus on is the interest rate channel. If the central bank tigh ...
6285 (9) Cost Cutting or Stagflation?
... Supply Shocks: The Usual Suspects “A clear and central villain of the piece is the historically unprecedented rise in commodity prices (mainly food and oil) in 1973-74 and again in 1979-80 that not coincidentally accompanied the two great burst of stagflation. “. . . one of the variables that set th ...
... Supply Shocks: The Usual Suspects “A clear and central villain of the piece is the historically unprecedented rise in commodity prices (mainly food and oil) in 1973-74 and again in 1979-80 that not coincidentally accompanied the two great burst of stagflation. “. . . one of the variables that set th ...
mod 19 review
... I. The level of aggregate output equals potential output. II. It is in short-run macroeconomic equilibrium. III. It is in long-run macroeconomic equilibrium. a. I only b. II only c. III only d. II and III only e. I and III only 5. The economy depicted in the graph is experiencing a(n) a. contraction ...
... I. The level of aggregate output equals potential output. II. It is in short-run macroeconomic equilibrium. III. It is in long-run macroeconomic equilibrium. a. I only b. II only c. III only d. II and III only e. I and III only 5. The economy depicted in the graph is experiencing a(n) a. contraction ...