100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
ECO 182 EXAM 2 UB ACTUAL QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED $10.49   Add to cart

Exam (elaborations)

ECO 182 EXAM 2 UB ACTUAL QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED

 1 view  0 purchase
  • Course
  • Institution

ECO 182 EXAM 2 UB ACTUAL QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS VERIFIED In the classical model, an increase in the unemployment rate will likely be temporary. According to the traditional Keynesian analysis, if the government increases spending by $10 million, then consumption will incr...

[Show more]

Preview 2 out of 7  pages

  • December 1, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
avatar-seller
ECO 182 EXAM 2 UB ACTUAL QUESTIONS AND ANSWERS WITH

COMPLETE SOLUTIONS VERIFIED

In the classical model, an increase in the unemployment rate

will likely be temporary.

According to the traditional Keynesian analysis, if the government increases

spending by $10 million, then

consumption will increase, and so total expenditures will increase by more than $10

million.

Fiscal policy may end up being destabilizing to an economy because

various time lags associated with fiscal policy cause the policy changes to take effect

too late

Suppose that the government of Summerfield spends $2 trillion in 2013 and

receives tax revenues

Summerfield has a budget deficit of $0.5 trillion.

According to the Keynesian approach, an increase in taxes

will reduce consumption by an amount less than the change in taxes

According to the interest rate effect, an increase in the price level, if other factors

are held constant,

will lead to

an increase in the real interest rate



or

, a reduction in total real spending on interest—rate—sensitive goods

There is a distinction between the long-run aggregate supply (LRAS) curve and

the short-run

aggregate supply (SRAS) curve. ln the long run,

all adjustments to changes in the price level have been made, but in the short run all

changes

in the price level do not occur.

Keynes and his followers believed that

there was no guarantee that a capitalist economy would reach a full employment

equilibrium.

Are federal budget deficits related to trade deficits?

Yes. As deficit spending goes up, i.t is likely government borrowing will, too. Then

foreign

residents who lend funds to the U.S. government have less to spend on our goods, so

U.S.

exports will fall.

Given the assumptions of the classical model

the market is a self—correcting mechanism.

To the extent that the political process of moving legislation through Congress is

slow

the action time lag will be long

The long-run aggregate supply curve

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseAdvocate. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $10.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

61001 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$10.49
  • (0)
  Add to cart