Topics_and_schedule
... Speak about demand, demand curve, law of demand. Give examples of how demand factors influence movement of demand curve using graphs. Speak about price elasticity of demand and types of demand price elasticity. Give examples of specific goods. Speak about price strategies. Speak about supply, supply ...
... Speak about demand, demand curve, law of demand. Give examples of how demand factors influence movement of demand curve using graphs. Speak about price elasticity of demand and types of demand price elasticity. Give examples of specific goods. Speak about price strategies. Speak about supply, supply ...
File
... 12. Refer to the above graph. Assume that the economy is at equilibrium at AD1 and AS1 and then is hit with both demand-pull and cost-push inflation. If this occurs, then, in the short run: A) AD1 will shift to AD2, AS2 will shift to AS3, the price level will be at P2, and output will be at Q2. B) A ...
... 12. Refer to the above graph. Assume that the economy is at equilibrium at AD1 and AS1 and then is hit with both demand-pull and cost-push inflation. If this occurs, then, in the short run: A) AD1 will shift to AD2, AS2 will shift to AS3, the price level will be at P2, and output will be at Q2. B) A ...
Study questQ2Q3 File
... (a) issuance, collection (b) issuance, issuance (c) buying back, collection (d) buying back, issuance 10. Governments promote long-run inflation when they depend on ___________ to finance their expenditures. (a) issuing bonds (b) taxation (c) raising the national debt (d) money creation (e) selling ...
... (a) issuance, collection (b) issuance, issuance (c) buying back, collection (d) buying back, issuance 10. Governments promote long-run inflation when they depend on ___________ to finance their expenditures. (a) issuing bonds (b) taxation (c) raising the national debt (d) money creation (e) selling ...
Problem Set 8 FE312 Fall 2011 Rahman Some Answers 1
... Fed A cares only about keeping the price level stable, and Fed B cares only about keeping output and employment at their natural rates. Explain how each Fed would respond to: a. an exogenous INCREASE in the demand for money. An increase in money demand will shift the Aggregate Demand curve to the LE ...
... Fed A cares only about keeping the price level stable, and Fed B cares only about keeping output and employment at their natural rates. Explain how each Fed would respond to: a. an exogenous INCREASE in the demand for money. An increase in money demand will shift the Aggregate Demand curve to the LE ...
Due Date: Thursday, September 8th (at the beginning of class)
... Fed A cares only about keeping the price level stable, and Fed B cares only about keeping output and employment at their natural rates. Explain how each Fed would respond to: a. an exogenous INCREASE in the demand for money. An increase in money demand will shift the Aggregate Demand curve to the LE ...
... Fed A cares only about keeping the price level stable, and Fed B cares only about keeping output and employment at their natural rates. Explain how each Fed would respond to: a. an exogenous INCREASE in the demand for money. An increase in money demand will shift the Aggregate Demand curve to the LE ...
practice exam 3 macro questions
... demand curve for the U.S. from AD1 to AD2? A. An economic boom in Europe. B. A drop in the price level. C. An increase in the exchange rate for the dollar. D. An increase in the interest rate. 2. Which of the following will cause a decrease in aggregate demand in the United States? A. An increase in ...
... demand curve for the U.S. from AD1 to AD2? A. An economic boom in Europe. B. A drop in the price level. C. An increase in the exchange rate for the dollar. D. An increase in the interest rate. 2. Which of the following will cause a decrease in aggregate demand in the United States? A. An increase in ...
Macro Quiz 5.tst
... 23) A decrease in the expected inflation rate shifts the short-run Phillips curve A) downward and shifts the long-run Phillips curve leftward. B) upward and shifts long-run Phillips curve rightward. C) upward and creates a movement upward along the long-run Phillips curve. D) downward and creates a ...
... 23) A decrease in the expected inflation rate shifts the short-run Phillips curve A) downward and shifts the long-run Phillips curve leftward. B) upward and shifts long-run Phillips curve rightward. C) upward and creates a movement upward along the long-run Phillips curve. D) downward and creates a ...
chapter 9 - Ken Farr (GCSU)
... During the year 2000, there was a sharp reduction in stock prices and a sharp increase in the world price of crude oil. Within the framework of the AD/AS model, how would these two changes influence the U.S. economy? a. The lower stock prices would increase SRAS, and the higher crude oil prices woul ...
... During the year 2000, there was a sharp reduction in stock prices and a sharp increase in the world price of crude oil. Within the framework of the AD/AS model, how would these two changes influence the U.S. economy? a. The lower stock prices would increase SRAS, and the higher crude oil prices woul ...
Exam Questions
... Following a stock market boom, people’s desire to consume rises and as a result, actual unemployment drops to 4.5%. What will the Fed do and what impact does the Fed’s action have on the economy? a. The Fed will decrease the money supply, which implies a movement along the SR Phillips curve. b. The ...
... Following a stock market boom, people’s desire to consume rises and as a result, actual unemployment drops to 4.5%. What will the Fed do and what impact does the Fed’s action have on the economy? a. The Fed will decrease the money supply, which implies a movement along the SR Phillips curve. b. The ...
Breaking Out of Stagflation into Sustained Growth
... reforms, the major cause of this current stagflation is a series of supply shocks (acute energy shortages, rising global oil prices, and unprecedented floods in the summer of 2010). These supply shocks— which have pushed the supply curve upward, seriously constraining output growth—when combined wit ...
... reforms, the major cause of this current stagflation is a series of supply shocks (acute energy shortages, rising global oil prices, and unprecedented floods in the summer of 2010). These supply shocks— which have pushed the supply curve upward, seriously constraining output growth—when combined wit ...
Keynesian vs. monetarist/new classical view
... assumption that wage rates would remain unchanged in the long run. Wages are marketbased and therefore highly flexible - workers’ inflationary expectations (see Section 3.5) would force them to use their bargaining power to bid up wages when the price level increased in order to retain their purchas ...
... assumption that wage rates would remain unchanged in the long run. Wages are marketbased and therefore highly flexible - workers’ inflationary expectations (see Section 3.5) would force them to use their bargaining power to bid up wages when the price level increased in order to retain their purchas ...
Aggregate Demand, Aggregate Supply, and the Self
... Why does a change in the price level result in a movement along the AD curve even though it shifts the LM (and possibly the IS) curve(s)? How does a change in the money supply, fiscal policy, or any other autonomous spending affect the AD curve? How does a flatter IS curve (higher multiplier or more ...
... Why does a change in the price level result in a movement along the AD curve even though it shifts the LM (and possibly the IS) curve(s)? How does a change in the money supply, fiscal policy, or any other autonomous spending affect the AD curve? How does a flatter IS curve (higher multiplier or more ...
Macroeconomics Topic 7
... According to the Fisher Effect, increasing the growth rate of the money supply does not affect the real interest rate, but because inflation will eventually occur, people begin to expect inflation, causing the nominal interest rate to rise. The nominal interest rate measures the percentage increase ...
... According to the Fisher Effect, increasing the growth rate of the money supply does not affect the real interest rate, but because inflation will eventually occur, people begin to expect inflation, causing the nominal interest rate to rise. The nominal interest rate measures the percentage increase ...
“Celso Furtado and the Structuralist
... region, and therefore believed that the perverse effects of stabilization on the rate of economic growth are at most temporary. The transition from inflation theory to stabilization policy was problematic and the lack of practical proposals to stabilize the economy in the short-run has been regarded ...
... region, and therefore believed that the perverse effects of stabilization on the rate of economic growth are at most temporary. The transition from inflation theory to stabilization policy was problematic and the lack of practical proposals to stabilize the economy in the short-run has been regarded ...
... that permits and starts may continue to fall and the market may not recover for several years. While builders remain hesitant to cut prices so far, and instead offer sales incentives, price cuts at some point in the future seem almost inevitable. Indeed, we have already seen that the pace of house- ...
the 9-letter dirty word - global plains advisory group
... he word inflation is considered a dirty word to most people. What does it mean for the majority? Rising prices and an income that won’t stretch as far as it used to. And while some will benefit from a rise in inflation, most Kansas City residents would be adversely affected if inflation starts to sp ...
... he word inflation is considered a dirty word to most people. What does it mean for the majority? Rising prices and an income that won’t stretch as far as it used to. And while some will benefit from a rise in inflation, most Kansas City residents would be adversely affected if inflation starts to sp ...
Teaching Modern Macroecsnornics at the Principles Level
... shifts up over time when real GDP is above potential GDP and shifts down over time when real GDP is below potential GDP. The line would be upward-sloping if current real GDP rather than lagged real GDP affected inflation, but the flat case is realistic and easier for students. Because this line repr ...
... shifts up over time when real GDP is above potential GDP and shifts down over time when real GDP is below potential GDP. The line would be upward-sloping if current real GDP rather than lagged real GDP affected inflation, but the flat case is realistic and easier for students. Because this line repr ...
Macroeconomics
... a) Find the equation for the IS curve. (5 Marks) b) Find the equation for the LM curve. (5 Marks) c) Solve for equilibrium real output (Y), disposable income (YD) the equilibrium interest rate (i), consumption (C), investment (I) and private saving (S). (5 Marks) d) Verify that production equals dem ...
... a) Find the equation for the IS curve. (5 Marks) b) Find the equation for the LM curve. (5 Marks) c) Solve for equilibrium real output (Y), disposable income (YD) the equilibrium interest rate (i), consumption (C), investment (I) and private saving (S). (5 Marks) d) Verify that production equals dem ...
govt. in the economy practice quiz
... 6. The unemployment rate does not take into account the number of part-time workers who want to have full-time jobs. 7. Full employment is reached when the unemployment rate drops below 7 percent. 8. The Fed requires all member banks to deposit a percentage of every deposit either in their bank vaul ...
... 6. The unemployment rate does not take into account the number of part-time workers who want to have full-time jobs. 7. Full employment is reached when the unemployment rate drops below 7 percent. 8. The Fed requires all member banks to deposit a percentage of every deposit either in their bank vaul ...