A rise in the price of oil imports has resulted in a decrease of short
... 4. If the fed announces that they will act to make next year’s inflation higher than this year’s, what will happen to velocity.? a. It increases. b. It decreases. c. It stays the same. 5. If the fed creates money, but a small enough amount of money so that no inflation is expected, what happens to i ...
... 4. If the fed announces that they will act to make next year’s inflation higher than this year’s, what will happen to velocity.? a. It increases. b. It decreases. c. It stays the same. 5. If the fed creates money, but a small enough amount of money so that no inflation is expected, what happens to i ...
Extra Review MC Questions for
... Q4 An aggregate supply curve may be horizontal over some range because within that range: A changes in the price level do not induce substitution B output cannot be increased unless prices and interest rates rise C rigid prices prevent employment from fluctuating D resources are underemployed or une ...
... Q4 An aggregate supply curve may be horizontal over some range because within that range: A changes in the price level do not induce substitution B output cannot be increased unless prices and interest rates rise C rigid prices prevent employment from fluctuating D resources are underemployed or une ...
CH 20 Introduction to Macroeconomics
... Hyperinflations are rare, but have been used to study the costs and consequences of even moderate inflation. • Deflation is a decrease in the overall price level. Prolonged periods of deflation can be just as damaging for the economy as sustained inflation. ...
... Hyperinflations are rare, but have been used to study the costs and consequences of even moderate inflation. • Deflation is a decrease in the overall price level. Prolonged periods of deflation can be just as damaging for the economy as sustained inflation. ...
The aggregate demand curve
... Average price of all the goods and services = this could be measured by the inflation rate The inflation rate is measured on the Y axis. The quantity of all the goods and services = this could be measured through the GDP The real GDP growth rate is measured on the X axis. In other words when the agg ...
... Average price of all the goods and services = this could be measured by the inflation rate The inflation rate is measured on the Y axis. The quantity of all the goods and services = this could be measured through the GDP The real GDP growth rate is measured on the X axis. In other words when the agg ...
Name - Instructure
... involves a short-run rise in inflation. This, in turn, causes long-run costs to rise and a decrease in aggregate supply. The end result should be an equilibrium at the natural rate of unemployment and a higher price level than the beginning level. The long-run Phillips curve is thus a vertical line ...
... involves a short-run rise in inflation. This, in turn, causes long-run costs to rise and a decrease in aggregate supply. The end result should be an equilibrium at the natural rate of unemployment and a higher price level than the beginning level. The long-run Phillips curve is thus a vertical line ...
Monetary Economics after Wicksell
... rate of interest, and the real return of investment (i.e. natural rate of interest) is higly unstable. • If natural rate > money rate =>entrepreneurs’(extra)profits (at the expense of savers) • =>demand for finance and credit supply increase • =>greater liquidity =>cumulative inflation (extraprofits ...
... rate of interest, and the real return of investment (i.e. natural rate of interest) is higly unstable. • If natural rate > money rate =>entrepreneurs’(extra)profits (at the expense of savers) • =>demand for finance and credit supply increase • =>greater liquidity =>cumulative inflation (extraprofits ...
View the presentation slides
... • The speed of aging in Japan is the fastest in the world. • 30% of population will be over 65 years old in 2025, and 40% in ...
... • The speed of aging in Japan is the fastest in the world. • 30% of population will be over 65 years old in 2025, and 40% in ...
Econ 2 UT3 F16 - Bakersfield College
... c. Politicians are always telling lies to get elected. d. Trick question – we have actually had government surpluses for more than half of the last 45 years. ...
... c. Politicians are always telling lies to get elected. d. Trick question – we have actually had government surpluses for more than half of the last 45 years. ...
Government`s Role in the Economy
... • Government can promote or slow economic growth by controlling the supply of money • Federal Reserve Bank, or the “Feds” control monetary policy in the U.S. ...
... • Government can promote or slow economic growth by controlling the supply of money • Federal Reserve Bank, or the “Feds” control monetary policy in the U.S. ...
What effect does a rise in government spending have on an ISLM
... (2) If the speculative demand for money is perfectly interest elastic, the LM curve is horizontal. Monetary policy will not be effective in changing national income. This is because the rise in the money supply does not cause a fall in the interest rate. (3) If investment is perfectly interest elast ...
... (2) If the speculative demand for money is perfectly interest elastic, the LM curve is horizontal. Monetary policy will not be effective in changing national income. This is because the rise in the money supply does not cause a fall in the interest rate. (3) If investment is perfectly interest elast ...
Inverted Real Yields vs. Gold
... The real yield measures the actual return of a bond or any interest-bearing asset adjusted for inflation. If a bond yields 5 percent, but the inflation rate is 6 percent, the real yield on that bond is negative. In such cases, inflation has reduced the value of the asset by more than it yielded. Lik ...
... The real yield measures the actual return of a bond or any interest-bearing asset adjusted for inflation. If a bond yields 5 percent, but the inflation rate is 6 percent, the real yield on that bond is negative. In such cases, inflation has reduced the value of the asset by more than it yielded. Lik ...
Answers to Questions in Chapter 18
... reason banks will not normally grant 100% mortgages.) 444 Is the following statement true: `The greater the number of types of assets that are counted as being liquid, the smaller will be the bank multiplier'? Yes. The more assets it counts as liquid for purposes of deciding how much credit to gra ...
... reason banks will not normally grant 100% mortgages.) 444 Is the following statement true: `The greater the number of types of assets that are counted as being liquid, the smaller will be the bank multiplier'? Yes. The more assets it counts as liquid for purposes of deciding how much credit to gra ...
AP Macroeconomics
... unemployment and are in a recession Contractionary Policy -> When you have inflation and want price stability ...
... unemployment and are in a recession Contractionary Policy -> When you have inflation and want price stability ...
Chapter 11: Classical and Keynesian Macro Analysis Classical
... increases or interest increases), which classical are claiming. However, Classical economists did not deny the existence of depressions and high unemployment but the sources of those crises lie outside the economic system. That is the effects of external shocks such as wars, tax increases, poor grow ...
... increases or interest increases), which classical are claiming. However, Classical economists did not deny the existence of depressions and high unemployment but the sources of those crises lie outside the economic system. That is the effects of external shocks such as wars, tax increases, poor grow ...
Monetary Policy
... nation with ability to deal with foreign entities. – Charter was for 20 years (1791 - 1811) ...
... nation with ability to deal with foreign entities. – Charter was for 20 years (1791 - 1811) ...
