sample papers economics with solution
... 3. Question Nos. 1-5 and 17-21 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each 4. Question Nos. 6-10 and 22-26 are short-answer questions carrying 3 marks each. Answer to them should not normally exceed 60 words each. 5. Question Nos. 11-13 ...
... 3. Question Nos. 1-5 and 17-21 are very short-answer questions carrying 1 mark each. They are required to be answered in one sentence each 4. Question Nos. 6-10 and 22-26 are short-answer questions carrying 3 marks each. Answer to them should not normally exceed 60 words each. 5. Question Nos. 11-13 ...
The stability of full employment
... effect (negative, if expectations are extrapolative), what was later to be called the Keynes-effect (positive) and the effect of the burden of private and public debt (presumably negative). Furthermore, if the economy experiences a liquidity trap (either from the outset or during the adjustment proc ...
... effect (negative, if expectations are extrapolative), what was later to be called the Keynes-effect (positive) and the effect of the burden of private and public debt (presumably negative). Furthermore, if the economy experiences a liquidity trap (either from the outset or during the adjustment proc ...
Chapter 11 Money and Monetary Policy
... recession. Over the next several years, prices gently but steadily fell at a rate of about 1% per year. These situations can be very frustrating, when looked at from the perspective of the real potential productivity of an economy. People may want to work and spend, and businesses might have great i ...
... recession. Over the next several years, prices gently but steadily fell at a rate of about 1% per year. These situations can be very frustrating, when looked at from the perspective of the real potential productivity of an economy. People may want to work and spend, and businesses might have great i ...
The endogenous money perspective
... case as typical….” (GT 200-201) • So Keynes of the General Theory (1936) appears midway between the argument that the State controls the creation of money, and that the banking system does – Keynes 1937 rather different more obviously endogenous in thinking… • Discussed later in this lecture ...
... case as typical….” (GT 200-201) • So Keynes of the General Theory (1936) appears midway between the argument that the State controls the creation of money, and that the banking system does – Keynes 1937 rather different more obviously endogenous in thinking… • Discussed later in this lecture ...
The IS – LM / AD – AS Model: A General Framework for
... • If rapid money growth causes inflation, why do central banks allow the money supply to grow rapidly? ...
... • If rapid money growth causes inflation, why do central banks allow the money supply to grow rapidly? ...
If a certain combination of goods or services lies outside the
... dollar will appreciate c. out of the United States and the dollar will depreciate d. out of the United States and the dollar will appreciate e. out of the United States and the value of the dollar will not change 16. Which of the following policy choices represents a combination of fiscal and moneta ...
... dollar will appreciate c. out of the United States and the dollar will depreciate d. out of the United States and the dollar will appreciate e. out of the United States and the value of the dollar will not change 16. Which of the following policy choices represents a combination of fiscal and moneta ...
Interactive Tool
... inflation. As a result, the lenders receive higher interest payments, part of which is compensation for the decrease in the value of the money lent. Borrowers have to pay higher interest rates and lose any advantage they may have from repaying loans with money that is not worth as much as it was pri ...
... inflation. As a result, the lenders receive higher interest payments, part of which is compensation for the decrease in the value of the money lent. Borrowers have to pay higher interest rates and lose any advantage they may have from repaying loans with money that is not worth as much as it was pri ...
The Measurement of Output and Prices In the Service
... Frequently, several methods are used simultaneously in a given industry. For example, the output of banking (6511 & 6512/1) is measured using a combination of input indicators, output indicators, and rough deflation. The input indicator is a head count of employees in Great Britain, adjusted for ass ...
... Frequently, several methods are used simultaneously in a given industry. For example, the output of banking (6511 & 6512/1) is measured using a combination of input indicators, output indicators, and rough deflation. The input indicator is a head count of employees in Great Britain, adjusted for ass ...
34 The Influence of Monetary and Fiscal Policy on Aggregate Demand
... Using Policy to Stabilize the Economy Keynes (and his followers) argued that the government should actively use monetary and fiscal policies to stabilize aggregate demand and, as a result, output and employment. The Employment Act of 1946 holds the federal government responsible for promoting full ...
... Using Policy to Stabilize the Economy Keynes (and his followers) argued that the government should actively use monetary and fiscal policies to stabilize aggregate demand and, as a result, output and employment. The Employment Act of 1946 holds the federal government responsible for promoting full ...
Chapter 40: Aggregate demand (2.2)
... The interest rate is positively linked to the price level, i.e. when the price level goes up, so do interest rates. This is because lenders (creditors, e.g. banks) will want to retain the real rate of interest being paid to them by debtors (= borrowers, e.g firms and households), and higher inflatio ...
... The interest rate is positively linked to the price level, i.e. when the price level goes up, so do interest rates. This is because lenders (creditors, e.g. banks) will want to retain the real rate of interest being paid to them by debtors (= borrowers, e.g firms and households), and higher inflatio ...
the Lecture Notes
... – Eventually inflation reality sets in and workers expect a continued higher level of price increases and push for wage demands in line with inflation – When this occurs, employers no longer find it profitable to retain the high levels of output and the economy reverts to full employment, YFE – Once ...
... – Eventually inflation reality sets in and workers expect a continued higher level of price increases and push for wage demands in line with inflation – When this occurs, employers no longer find it profitable to retain the high levels of output and the economy reverts to full employment, YFE – Once ...
The liquidity effect in a small open economy model
... only compatible with a small set parameterizations of preferences. We show that producing liquidity and overshooting effects requires large enough intertemporal substitution in consumption and complementarity between consumption and real balances. Such parameterizations lead to counterintuitive dome ...
... only compatible with a small set parameterizations of preferences. We show that producing liquidity and overshooting effects requires large enough intertemporal substitution in consumption and complementarity between consumption and real balances. Such parameterizations lead to counterintuitive dome ...
MERCATUS RESEARCH THE CASE FOR NOMINAL GDP TARGETING Scott Sumner
... short-term changes. Since the price level is inversely related to the value of money, changes in the supply or demand for gold caused the price level to fluctuate in the short run when gold was used as money. Although the long-run trend in prices under a gold standard is roughly flat, the historical ...
... short-term changes. Since the price level is inversely related to the value of money, changes in the supply or demand for gold caused the price level to fluctuate in the short run when gold was used as money. Although the long-run trend in prices under a gold standard is roughly flat, the historical ...
Downlaod File
... Inflation is an expected property of any economy in the world. In other words, inflation is the rise of general level of prices. However, inflation is a much more complicated than simply the increase of prices. investopidea explains inflation as "the rate at which the general level of prices for goo ...
... Inflation is an expected property of any economy in the world. In other words, inflation is the rise of general level of prices. However, inflation is a much more complicated than simply the increase of prices. investopidea explains inflation as "the rate at which the general level of prices for goo ...
Effect of Inflation on the Growth and Development
... from 1-2 % to 5%).for any inflation below zero, a country is regarded as experiencing deflation (Vegh,1992 and Piana, 2001). It is pertinent to note that there exists no biding restriction on the ranges of these classifications of inflation. The classicafitions is usually determined by the inflation ...
... from 1-2 % to 5%).for any inflation below zero, a country is regarded as experiencing deflation (Vegh,1992 and Piana, 2001). It is pertinent to note that there exists no biding restriction on the ranges of these classifications of inflation. The classicafitions is usually determined by the inflation ...
Assigment 8
... Output change that results from a change in aggregate demand is a permanent effect. A change in aggregate demand leads to a permanent change of higher output. An increase in aggregate demand increases real GDP only temporarily. An increase in aggregate demand increases real GDP by a multiple of the ...
... Output change that results from a change in aggregate demand is a permanent effect. A change in aggregate demand leads to a permanent change of higher output. An increase in aggregate demand increases real GDP only temporarily. An increase in aggregate demand increases real GDP by a multiple of the ...
DOC
... Output change that results from a change in aggregate demand is a permanent effect. A change in aggregate demand leads to a permanent change of higher output. An increase in aggregate demand increases real GDP only temporarily. An increase in aggregate demand increases real GDP by a multiple of the ...
... Output change that results from a change in aggregate demand is a permanent effect. A change in aggregate demand leads to a permanent change of higher output. An increase in aggregate demand increases real GDP only temporarily. An increase in aggregate demand increases real GDP by a multiple of the ...
what caused the great depression?
... productivity fell while businesses held wages constant, profits were squeezed. By mid-1930, before the first banking crisis occurred, the financial community was noticing this severe profit squeeze, leading to a decline in the demand for corporate equities and debt. Corporate savings declined from $ ...
... productivity fell while businesses held wages constant, profits were squeezed. By mid-1930, before the first banking crisis occurred, the financial community was noticing this severe profit squeeze, leading to a decline in the demand for corporate equities and debt. Corporate savings declined from $ ...