Practice Quizzes (Word)
... 1. Which of the following will result if there is a decrease in aggregate demand? a. expansion; inflation c. expansion; deflation b. recession; deflation d. recession; inflation 2. Which of the following scenarios can cause cost-push inflation (and therefore stagflation)? a. an increase in taxes on ...
... 1. Which of the following will result if there is a decrease in aggregate demand? a. expansion; inflation c. expansion; deflation b. recession; deflation d. recession; inflation 2. Which of the following scenarios can cause cost-push inflation (and therefore stagflation)? a. an increase in taxes on ...
Midterm #3
... policy in these countries more powerful in correcting a recessionary or expansionary gap or less powerful? Explain your reasoning. ...
... policy in these countries more powerful in correcting a recessionary or expansionary gap or less powerful? Explain your reasoning. ...
Aggregate Supply - Eastbourne College Portal
... There are two different ways that this can be interpreted. You could argue that, for a given level of real output, Y1, the price level has risen due to a rise in the costs of various industries (like an increase in wage rates, other input prices or even the tax imposed by the government) from P1 to ...
... There are two different ways that this can be interpreted. You could argue that, for a given level of real output, Y1, the price level has risen due to a rise in the costs of various industries (like an increase in wage rates, other input prices or even the tax imposed by the government) from P1 to ...
M03_ABEL4987_7E_IM_C03
... a. If real wage (w) marginal product of labor (MPN), the firm is paying the marginal worker more than the worker produces, so the firm should reduce the number of workers to increase profits b. If w MPN, the marginal worker produces more than he or she is being paid, so the firm should increase ...
... a. If real wage (w) marginal product of labor (MPN), the firm is paying the marginal worker more than the worker produces, so the firm should reduce the number of workers to increase profits b. If w MPN, the marginal worker produces more than he or she is being paid, so the firm should increase ...
20140501 Problem Set 6 Answers Draft
... How large, as a share of GDP, were the federal government’s total spending spending program in 1980? In 1990? In 2000? In 2008? How large as a share of GDP does the Congressional Budget Office project they will be in 2024? ...
... How large, as a share of GDP, were the federal government’s total spending spending program in 1980? In 1990? In 2000? In 2008? How large as a share of GDP does the Congressional Budget Office project they will be in 2024? ...
Sample Final Exam, Spring 2013
... 39. The “Yes” and “No” camps disagree about a) whether money affects prices and inflation b) whether or not changes in the demand and supply of money can directly affect real GDP c) whether money exchange is better than barter exchange d) whether money supply helps markets quickly adjust to equilibr ...
... 39. The “Yes” and “No” camps disagree about a) whether money affects prices and inflation b) whether or not changes in the demand and supply of money can directly affect real GDP c) whether money exchange is better than barter exchange d) whether money supply helps markets quickly adjust to equilibr ...
Chapter 8 Presentation - Kellogg Community College
... Unsold goods and unemployed labor could occur, but adjustments to wages and prices would eventually eliminate them. The Great Depression proved the classical theory wrong. ...
... Unsold goods and unemployed labor could occur, but adjustments to wages and prices would eventually eliminate them. The Great Depression proved the classical theory wrong. ...
Equilibrium in the Aggregate Demand
... WE JUST LEARNED • ILLUSTRATE how the aggregate supply curve illustrates the relationship between the aggregate price level and the quantity of aggregate output supplied in the economy • IDENTIFY what factors can shift the aggregate supply curve • EXPLAIN why the aggregate supply curve is different i ...
... WE JUST LEARNED • ILLUSTRATE how the aggregate supply curve illustrates the relationship between the aggregate price level and the quantity of aggregate output supplied in the economy • IDENTIFY what factors can shift the aggregate supply curve • EXPLAIN why the aggregate supply curve is different i ...
Economic Measurements – Unit 2
... For each of the following situations, put the appropriate letter before the example. F if it is an example of frictional unemployment. C if it is an example of cyclical unemployment. S if it is an example of structural unemployment. 1. A computer programmer is laid off because of a recession. ___ 2. ...
... For each of the following situations, put the appropriate letter before the example. F if it is an example of frictional unemployment. C if it is an example of cyclical unemployment. S if it is an example of structural unemployment. 1. A computer programmer is laid off because of a recession. ___ 2. ...
ECONOMIC ENVIRO NMENT answers.d oc
... b. Healthy growth and a BOP equilibrium-As the economy grows at a faster pace, consumers prefer to buy more things from abroad which for countries with narrow export base like money tends to worsen the BOP position for the country. In cases like this, the exchange rate depreciates, or government imp ...
... b. Healthy growth and a BOP equilibrium-As the economy grows at a faster pace, consumers prefer to buy more things from abroad which for countries with narrow export base like money tends to worsen the BOP position for the country. In cases like this, the exchange rate depreciates, or government imp ...
Homework 1
... 9. Find the real GDP growth rates of the US and one more county of your choice for as long a history you can. Plot them together and tell a story. Then plot the in‡ation rates for the same two countries and tell a story. (It is OK if your sample dates are di¤erent for in‡ation and GDP growth.) Pay a ...
... 9. Find the real GDP growth rates of the US and one more county of your choice for as long a history you can. Plot them together and tell a story. Then plot the in‡ation rates for the same two countries and tell a story. (It is OK if your sample dates are di¤erent for in‡ation and GDP growth.) Pay a ...
Economics 101 Multiple Choice Questions for Final Examination Miller
... Iraq will cause gasoline prices to rise, beginning next month. In the current week, the announcement would: a. shift the supply of gasoline right c. shift the demand for gasoline left b. shift the demand for gasoline right d. have no effect on the demand or supply of gasoline 10. "At the price of $5 ...
... Iraq will cause gasoline prices to rise, beginning next month. In the current week, the announcement would: a. shift the supply of gasoline right c. shift the demand for gasoline left b. shift the demand for gasoline right d. have no effect on the demand or supply of gasoline 10. "At the price of $5 ...
Chapter 1
... Hysteresis in Unemployment (continued) Some regulations on firms may cause them to be cautious about hiring workers because the regulations make it difficult to fire them. Insider-outsider theory suggests that unionized labour increases wages for insiders and leaves outsiders unemployed. ...
... Hysteresis in Unemployment (continued) Some regulations on firms may cause them to be cautious about hiring workers because the regulations make it difficult to fire them. Insider-outsider theory suggests that unionized labour increases wages for insiders and leaves outsiders unemployed. ...
Thinking Like an Economist
... does not mean that all prices are rising. Some prices may be falling, but on average the overall level of prices is rising. ...
... does not mean that all prices are rising. Some prices may be falling, but on average the overall level of prices is rising. ...
chapter 16 - Spring Branch ISD
... New 4. Assume that one year the nominal wage for a worker is $12 per hour and there is no inflation. The next year the nominal wage stays the same but the rate of inflation is 10 percent. What is the new real wage after taking inflation into account? What nominal wage would workers ask for to keep t ...
... New 4. Assume that one year the nominal wage for a worker is $12 per hour and there is no inflation. The next year the nominal wage stays the same but the rate of inflation is 10 percent. What is the new real wage after taking inflation into account? What nominal wage would workers ask for to keep t ...
PDF
... respectively. Its economy would have experienced very serious difficulties at that time had it not been for the very fortunate external development of a large rise in the world price of coffee. Coupled with this was the fact that external credit was amply available. This enabled Uganda to avert adju ...
... respectively. Its economy would have experienced very serious difficulties at that time had it not been for the very fortunate external development of a large rise in the world price of coffee. Coupled with this was the fact that external credit was amply available. This enabled Uganda to avert adju ...
Saturday S..
... • The higher is income and prices, the greater the amount of money required to make the purchases people will wish to make. • But a $1 in your pocket is a $1 not in the bank. In the bank, that $1 would be accumulating interest, but in your pocket, it accumulates no interest. So the interest rate is ...
... • The higher is income and prices, the greater the amount of money required to make the purchases people will wish to make. • But a $1 in your pocket is a $1 not in the bank. In the bank, that $1 would be accumulating interest, but in your pocket, it accumulates no interest. So the interest rate is ...
course objectives - University of Belize
... legitimate reason with evidence. Failing to do so will result in “zero” for that exam. Students who cheat in exams will be dealt with according to university policy. QUIZZES: Numerous quizzes will be given. Quizzes may consist of multiple-choice questions, true/false and short answers or any combin ...
... legitimate reason with evidence. Failing to do so will result in “zero” for that exam. Students who cheat in exams will be dealt with according to university policy. QUIZZES: Numerous quizzes will be given. Quizzes may consist of multiple-choice questions, true/false and short answers or any combin ...
Unemployment
... Does the Unemployment Rate Measure What We Want It To? • It is difficult to distinguish between a person who is unemployed and a person who is not in the labor force. • Discouraged workers, people who would like to work but have given up looking for jobs after an unsuccessful search, don’t show up ...
... Does the Unemployment Rate Measure What We Want It To? • It is difficult to distinguish between a person who is unemployed and a person who is not in the labor force. • Discouraged workers, people who would like to work but have given up looking for jobs after an unsuccessful search, don’t show up ...
Full employment
Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or deficient-demand unemployment. It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0%. The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year. This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of ""full"" employment. The NAIRU has also been described by Milton Friedman, among others, as the ""natural"" rate of unemployment. Having many names, it has also been called the structural unemployment rate.The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment. Other economists have provided estimates between 2% and 13%, depending on the country, time period, and their political biases. For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s. Recently, economists have emphasized the idea that full employment represents a ""range"" of possible unemployment rates. For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the ""full-employment unemployment rate"" of 4 to 6.4%. This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate.The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve. In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or ""potential"" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary.