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... • About per Unit Profit • This is how producers make their decisions. • If price level is going up but input prices remain the same, they will profit by producing more! ...
... • About per Unit Profit • This is how producers make their decisions. • If price level is going up but input prices remain the same, they will profit by producing more! ...
review powerpoint
... • Founder of Free Market Economics • Argued: Free markets best promote the social welfare • Government should not interfere with the free market (invisible hand regulates the market) ...
... • Founder of Free Market Economics • Argued: Free markets best promote the social welfare • Government should not interfere with the free market (invisible hand regulates the market) ...
14.02 Solutions Quiz II Spring 03
... 8. The modified Phillips curve tell us that the only way to reduce inflation is through a) unemployment rates higher than the natural rate b) expansionary fiscal policy c) unemployment rates lower than the natural rate d) contractionary fiscal policy 9. Stock prices increase if: a) Money supply incr ...
... 8. The modified Phillips curve tell us that the only way to reduce inflation is through a) unemployment rates higher than the natural rate b) expansionary fiscal policy c) unemployment rates lower than the natural rate d) contractionary fiscal policy 9. Stock prices increase if: a) Money supply incr ...
The Great Depression
... increased by 9% per year until 1937 and picked up again mid1938. Full recovery occurred due to mobilization for WWII in 1941. ...
... increased by 9% per year until 1937 and picked up again mid1938. Full recovery occurred due to mobilization for WWII in 1941. ...
What components of GDP (if any) would each of the following
... g. Honda expands its factory in Marysville, Ohio. 2. GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being? 3. If prices rise, people’s income from selling goods increases. The growth of real GDP ...
... g. Honda expands its factory in Marysville, Ohio. 2. GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being? 3. If prices rise, people’s income from selling goods increases. The growth of real GDP ...
Fiscal Policy Power Point
... automatically adjust during times of war, severe drought, depression, etc. For example: Economic slump would lead to lower prices; people would begin buying again; and the economy would recover. The Great Depression would test this theory of self-adjustment. ...
... automatically adjust during times of war, severe drought, depression, etc. For example: Economic slump would lead to lower prices; people would begin buying again; and the economy would recover. The Great Depression would test this theory of self-adjustment. ...
2007 Macro FRQ
... Answer: Buying bonds would increase the MS and lower nominal Interest rates. (e) Assume that the Fed’s action results in some inflation. What would be the impact of the open-market operation on the real rate of interest? Explain. Answer: The real interest rate would decrease. Real IR = Nominal – Inf ...
... Answer: Buying bonds would increase the MS and lower nominal Interest rates. (e) Assume that the Fed’s action results in some inflation. What would be the impact of the open-market operation on the real rate of interest? Explain. Answer: The real interest rate would decrease. Real IR = Nominal – Inf ...
Chapter 13 Economic Challenges
... below which income is insufficient to support a family or household • The level is currently $18,244.00 • The poverty rate is the percentage of people who live in households below the poverty threshold ...
... below which income is insufficient to support a family or household • The level is currently $18,244.00 • The poverty rate is the percentage of people who live in households below the poverty threshold ...
Macroeconomic Analysis Econ 6022
... equilibrium - Keynesians assume that when not in general equilibrium, the economy lies at the intersection of the IS and LM curves, and may be off the FE line - This represents the assumption that firms meet the demand for their products by adjusting employment model ...
... equilibrium - Keynesians assume that when not in general equilibrium, the economy lies at the intersection of the IS and LM curves, and may be off the FE line - This represents the assumption that firms meet the demand for their products by adjusting employment model ...
MACROECONOMICS 1. A supply curve slopes upward - FBLA-PBL
... 1. A supply curve slopes upward because: a. an increase in input prices increases supply b. the quantity supplied of most goods and services increases over time c. an increase in price gives producers an incentive to supply a larger quantity d. as more is produced, total cost of production falls 2. ...
... 1. A supply curve slopes upward because: a. an increase in input prices increases supply b. the quantity supplied of most goods and services increases over time c. an increase in price gives producers an incentive to supply a larger quantity d. as more is produced, total cost of production falls 2. ...
Economics Study Guide - Effingham County Schools
... Monetary policy: using $ supply & interest rates to help economy Fed expands money supply with Bu.L.L.L.buying bonds (securities), lower reserve req, lower discount rate, lower federal funds rate. Fiscal policy: gov’t TAXING/SPENDING to help the economy Countries should specialize in making what the ...
... Monetary policy: using $ supply & interest rates to help economy Fed expands money supply with Bu.L.L.L.buying bonds (securities), lower reserve req, lower discount rate, lower federal funds rate. Fiscal policy: gov’t TAXING/SPENDING to help the economy Countries should specialize in making what the ...
Formulas for Macro AP
... GDP = C + I + G + X – M MPC = 1 – MPS Spending multiplier = 1/MPS or 1/(1-MPC) Real GDP = nominal GDP/price index Monetary multiplier = 1/RRR Total addition to banking system = 1st loan x money multiplier + initial deposit IF IT’S NEW $ • Amt. of $ a bank can loan = excess reserves = total reserves ...
... GDP = C + I + G + X – M MPC = 1 – MPS Spending multiplier = 1/MPS or 1/(1-MPC) Real GDP = nominal GDP/price index Monetary multiplier = 1/RRR Total addition to banking system = 1st loan x money multiplier + initial deposit IF IT’S NEW $ • Amt. of $ a bank can loan = excess reserves = total reserves ...
Economics 111– Introduction to Economics
... a. A laundry in Seattle purchases a new clothes washer produced in Mexico. b. A laundry in Mexico purchases a new clothes washer produced in the U.S. c. You purchase for your home a new clothes washer produced in the U.S. d. You purchase for your home a new clothes washer produced in France. Note: N ...
... a. A laundry in Seattle purchases a new clothes washer produced in Mexico. b. A laundry in Mexico purchases a new clothes washer produced in the U.S. c. You purchase for your home a new clothes washer produced in the U.S. d. You purchase for your home a new clothes washer produced in France. Note: N ...
Notes on Business Cycles
... not adjust to reach equilibrium. Now, some economists suggest that prices might not be able to adjust possibly due to menu costs. The ideas that wages or prices can’t adjust to equilibrium is called “sticky wages” and “sticky prices” theory. Generating a recession: start with a drop in AD (a drop in ...
... not adjust to reach equilibrium. Now, some economists suggest that prices might not be able to adjust possibly due to menu costs. The ideas that wages or prices can’t adjust to equilibrium is called “sticky wages” and “sticky prices” theory. Generating a recession: start with a drop in AD (a drop in ...
Homework 4 - I can be contacted at
... 8. In the simplest of terms, the quantity theory of money says that: A. the price level varies in response to changes in the quantity of money. B. the quantity of output produced in an economy varies in response to changes in the price level. C. the velocity of money varies in response to the quanti ...
... 8. In the simplest of terms, the quantity theory of money says that: A. the price level varies in response to changes in the quantity of money. B. the quantity of output produced in an economy varies in response to changes in the price level. C. the velocity of money varies in response to the quanti ...
Sample Economics Exam - Kyiv School of Economics
... of a product purchased divided by the percentage change in the ________________ of this product. When there are many close substitutes available, the demand of the product is likely to be ________________. When the product is a sizable component of the consumer’s budget, its demand is likely to be _ ...
... of a product purchased divided by the percentage change in the ________________ of this product. When there are many close substitutes available, the demand of the product is likely to be ________________. When the product is a sizable component of the consumer’s budget, its demand is likely to be _ ...
currency depreciation annex
... and all firms are likely to gain from this stable position Domestic firms that LOSE from an appreciation of a country’s currency are: Exporters of goods and services to foreign markets – not just G&S but also holidays Business that sell goods to the domestic market and have FOREIGN competitors o ...
... and all firms are likely to gain from this stable position Domestic firms that LOSE from an appreciation of a country’s currency are: Exporters of goods and services to foreign markets – not just G&S but also holidays Business that sell goods to the domestic market and have FOREIGN competitors o ...
Macroeconomics
... states that as real price fall real wealth increases, so consumers demand more goods, and the Keynes or interest rate effect, which states that as prices fall the demand for money declines causing interest rates to decline and borrowing for investment and consumption to increase. In the conventional ...
... states that as real price fall real wealth increases, so consumers demand more goods, and the Keynes or interest rate effect, which states that as prices fall the demand for money declines causing interest rates to decline and borrowing for investment and consumption to increase. In the conventional ...
Theory of Capitalism
... --Occur when one producer or consumer directly affect the costs or utility of a second producer or consumer, and this producer max profits on the basis of the private costs of production, not on the base of social costs. --When externality is present the company base their decisions on private MCs. ...
... --Occur when one producer or consumer directly affect the costs or utility of a second producer or consumer, and this producer max profits on the basis of the private costs of production, not on the base of social costs. --When externality is present the company base their decisions on private MCs. ...
Learning Goal 4
... income is taken from the richer people in the form of taxes and redistributed to the poorer members of the population through various government programs such as free education, free health care, and free child care. Workers in these countries get longer vacations and tend to work fewer hours per we ...
... income is taken from the richer people in the form of taxes and redistributed to the poorer members of the population through various government programs such as free education, free health care, and free child care. Workers in these countries get longer vacations and tend to work fewer hours per we ...