Eco 101 Sample Practice Final Spring 2011
... Causes shortages 70 divided by growth rate per period = approximate doubling time Government prices set on certain activities, services, goods ...
... Causes shortages 70 divided by growth rate per period = approximate doubling time Government prices set on certain activities, services, goods ...
The postbellum deflation and its lessons for today
... Most observers view deflationary pressures as a threat to macroeconomic stability (Stern, 2003). This understanding of deflation is often justified on theoretical grounds by noting several important channels through which deflation can adversely affect an economy. First, given relatively rigid nomin ...
... Most observers view deflationary pressures as a threat to macroeconomic stability (Stern, 2003). This understanding of deflation is often justified on theoretical grounds by noting several important channels through which deflation can adversely affect an economy. First, given relatively rigid nomin ...
AP Macro Unit 4 Multiple Choice Questions
... C. Unit of account D. Medium of exchange E. Store of value 2. If you use money as a store of value, you would be A. Buying a new watch B. Searching the internet for a deal on a new car C. Putting money into a savings account D. Lending money to friend E. Paying for gas on your credit card 3. Which o ...
... C. Unit of account D. Medium of exchange E. Store of value 2. If you use money as a store of value, you would be A. Buying a new watch B. Searching the internet for a deal on a new car C. Putting money into a savings account D. Lending money to friend E. Paying for gas on your credit card 3. Which o ...
1 - nrapmacro
... Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. ...
... Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. ...
ABOUT THE EXAM Multiple Choice Questions—two thirds of total
... currency and demand deposits held by the public) by the Federal Reserve to assist the economy to achieve a f u l l employment, noninflationary level of GDP. ...
... currency and demand deposits held by the public) by the Federal Reserve to assist the economy to achieve a f u l l employment, noninflationary level of GDP. ...
agg demand pp
... C= Consumption Spending I = Investment Spending G = Government Spending (X-M) = difference between spending on imports and receipts from exports (Balance of Payments) ...
... C= Consumption Spending I = Investment Spending G = Government Spending (X-M) = difference between spending on imports and receipts from exports (Balance of Payments) ...
Chapter 19
... velocity is not stable and changes unexpectedly, a steady rate of growth of the money supply may not be sufficient to keep the economy on the desired path of noninflationary growth of real output. 19-11 Answer parts (a) and (b) on the basis of the following information for a hypothetical economy in ...
... velocity is not stable and changes unexpectedly, a steady rate of growth of the money supply may not be sufficient to keep the economy on the desired path of noninflationary growth of real output. 19-11 Answer parts (a) and (b) on the basis of the following information for a hypothetical economy in ...
Chapter 5 Introduction to Macroeconomics
... A) for the government to directly control prices and wages. B) to increase the supply of money in the economy. C) to increase government production so that public-sector employment increases. D) to stimulate the supply of labor and capital and increase investment. True/False 1) Macroeconomic behavio ...
... A) for the government to directly control prices and wages. B) to increase the supply of money in the economy. C) to increase government production so that public-sector employment increases. D) to stimulate the supply of labor and capital and increase investment. True/False 1) Macroeconomic behavio ...
Monetary Policy
... • The money supply would be tied to the stock of gold. • The government sets the price of gold at some dollar amount. • The government promises to buy and sell gold at the official price. • Critics charge that a gold standard is no guarantee against inflation. • Critics also charge that a reduction ...
... • The money supply would be tied to the stock of gold. • The government sets the price of gold at some dollar amount. • The government promises to buy and sell gold at the official price. • Critics charge that a gold standard is no guarantee against inflation. • Critics also charge that a reduction ...
QUIZ 1 - Solutions 14.02 Principles of Macroeconomics March 3, 2005
... 5. According to the standard IS-LM framework, if investment becomes more responsive to interest rates, the equilibrium interest rate is also more responsive to a monetary expansion. False. The IS curve is ‡atter if @I @i is more negative. So given a change in money supply of size M , the equilibrium ...
... 5. According to the standard IS-LM framework, if investment becomes more responsive to interest rates, the equilibrium interest rate is also more responsive to a monetary expansion. False. The IS curve is ‡atter if @I @i is more negative. So given a change in money supply of size M , the equilibrium ...
8 Economic policy_20..
... ─ Up until quite recently, gold was money. ─ 1933 - the United States went off the domestic gold standard. Gold was stored in government vaults, and in it's place people were issued paper money which was "backed" by gold or silver on a one for one basis. ─ 1973 - the U.S. left off the international ...
... ─ Up until quite recently, gold was money. ─ 1933 - the United States went off the domestic gold standard. Gold was stored in government vaults, and in it's place people were issued paper money which was "backed" by gold or silver on a one for one basis. ─ 1973 - the U.S. left off the international ...
chapter 25
... borrow money to make the purchase. c. Since people often borrow money to purchase consumer durables, an increase in the interest rate raises the monthly payments on these items. Consequently, consumers purchase fewer durables when interest rates rise. ...
... borrow money to make the purchase. c. Since people often borrow money to purchase consumer durables, an increase in the interest rate raises the monthly payments on these items. Consequently, consumers purchase fewer durables when interest rates rise. ...
Hanke - 1 The Fed: The Great Enabler By
... economy to good health, inflation would have to be wrung out of the economy. And to kill inflation, the money supply would have to be controlled. Chairman Volcker achieved his goal. By 1982, the annual rate of inflation had dropped to 3.8 percent – a great accomplishment. The problem was that the Vo ...
... economy to good health, inflation would have to be wrung out of the economy. And to kill inflation, the money supply would have to be controlled. Chairman Volcker achieved his goal. By 1982, the annual rate of inflation had dropped to 3.8 percent – a great accomplishment. The problem was that the Vo ...
AP Econ Study Guide
... Demand and GDP will decrease somewhat. (GDP = C+ I + G + X - M ) Remember “M” is a minus to AD / GDP. This is the "net export effect". If government pursues an expansionary fiscal policy of more spending and/or lower taxes, there will not be the full impact that we hoped for, because of this foreign ...
... Demand and GDP will decrease somewhat. (GDP = C+ I + G + X - M ) Remember “M” is a minus to AD / GDP. This is the "net export effect". If government pursues an expansionary fiscal policy of more spending and/or lower taxes, there will not be the full impact that we hoped for, because of this foreign ...
Institute of Actuaries of India Subject CT7 – Business Economics INDICATIVE SOLUTION
... speculators believe that the price change that has occurred is temporary. For example, in times of plenty and low prices, farmers may hold back supplies of produce to the market in anticipation of higher prices in the future. Such action reduces the fall in the current price. Similarly, in times of ...
... speculators believe that the price change that has occurred is temporary. For example, in times of plenty and low prices, farmers may hold back supplies of produce to the market in anticipation of higher prices in the future. Such action reduces the fall in the current price. Similarly, in times of ...
Problem Set 7
... 1. According to the Monetarists, the aggregate demand curve slopes downward because an increase in the price level means a(n) _____ in the real money supply and therefore a _____ level of real spending. a. increase; higher b. increase; lower c. decrease; higher d. decrease; lower 2. Keynesians and M ...
... 1. According to the Monetarists, the aggregate demand curve slopes downward because an increase in the price level means a(n) _____ in the real money supply and therefore a _____ level of real spending. a. increase; higher b. increase; lower c. decrease; higher d. decrease; lower 2. Keynesians and M ...
Econ 1202.2 Practice #7 MULTIPLE CHOICE. Choose the one
... 5) Assume there are just two assets, money and bonds. We can expect that an individual with a given level of wealth will A) hold less money when the current interest rate is very low. B) not hold money as long as bonds pay a positive rate of interest. C) hold lots of money even at very high interes ...
... 5) Assume there are just two assets, money and bonds. We can expect that an individual with a given level of wealth will A) hold less money when the current interest rate is very low. B) not hold money as long as bonds pay a positive rate of interest. C) hold lots of money even at very high interes ...
