Sticky prices - Study guides, Revision notes & Summaries

How does optimal price depend on price level P and output Y? correct answers Directly related - as output or price level grow, so too does optimal price Procyclicality of TFP - Classical correct answers TFP drives the business cycle Procyclicality of TFP - Keynesian correct answers Use factors of production at higher intensity during booms (Solow residual represents intensity increase/ is TFP) Procyclicality of Money Supply - Classical correct answers Reverse causality: Higher output Y ...

In 2008, the United States was in recession. Which of the following things would you expect to have happened? correct answers - Increased layoffs/firing - Higher bankruptcy rate - Increased unemployment insurance claims The Wealth Effect, Interest-Rate Effect, and Exchange-Rate Effect are all explanations for ____. correct answers The slope of the aggregate-demand curve If the rise in house value made homeowners feel wealthier, then it would have shifted ___. correct answers aggregate de...

These notes were prepared based on the lectures and supplemented by information from textbooks and tutorials where parts of the lecture were unclear. Graphs, equations, and bullet-point explanations included. Prepared by a first class Economics and Management student for the FHS Macroeconomics paper.

ECN 211 - Final Exam Study Guide Questions with Complete Solutions High and unexpected inflation has a greater cost - Correct Answer for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation. When deflation exists, - Correct Answer the real interest rate is greater than the nominal interest rate. When the money market is drawn with the value of money on the vertical axis, an increase in the money supply causes the equilibrium value of money - ...

Economics Chapter 5 Macroeconomics Concerns Which of the following is NOT a topic studied in Macroeconomics? A) gross domestic product B) the unemployment rate C) the price of IBM computers D) the inflation rate - ANSWER C Which of the following is a topic studied in Macroeconomics? A) gross domestic product B) the wage of auto workers C) the price of IBM computers D) the amount of pizza produced - ANSWER A Which of the following is a topic studied in Macroeconomics? A) ...

Economics Chapter 5 Macroeconomics Concerns Which of the following is NOT a topic studied in Macroeconomics? A) gross domestic product B) the unemployment rate C) the price of IBM computers D) the inflation rate - ANSWER C Which of the following is a topic studied in Macroeconomics? A) gross domestic product B) the wage of auto workers C) the price of IBM computers D) the amount of pizza produced - ANSWER A Which of the following is a topic studied in Macroeconomics? A) ...

Macroeconomics JCCC Exam 2 Questions & Answers 2024/2025 Demand shock - ANSWERSan event that shifts the aggregate demand curve sticky prices - ANSWERSPrices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded. Nominal GDP - ANSWERSthe production of goods and services valued at current prices Real GDP - ANSWERSthe production of goods and services valued for price changes personal consumption expenditures (C) - ANSWERSthe expendit...

Macroeconomists study? correct answers Economy Wide phenomena Which of the following statistics is the best single measure of an economy's well being? correct answers GDP The 3 main concerns of Macro are? correct answers Inflation, Unemployment and output growth According to the Classical Model, excessive unemployment correct answers could not persist because wages would fall to eliminate the excess supply of labor According to the Keynesian model, excessive unemployment correct ans...

Economics Chapter 5 Macroeconomics Concerns Which of the following is NOT a topic studied in Macroeconomics? A) gross domestic product B) the unemployment rate C) the price of IBM computers D) the inflation rate - ANSWER C Which of the following is a topic studied in Macroeconomics? A) gross domestic product B) the wage of auto workers C) the price of IBM computers D) the amount of pizza produced - ANSWER A Which of the following is a topic studied in Macroeconomics? A) ...

Principles of Economics Exam Questions and Answers What is frictional unemployment? - ANSWER-Between jobs, moving towards a better job. (Module 7) What is structural unempoyment? - ANSWER-Job eliminated, accumulated experience is no longer valued in the labor market. What is cyclical unemployment? - ANSWER-Laid off due to a recession How do you calculate the unemployment rate? - ANSWER-(# of unemployed/labor force) x 100 How do you calculate the labor force participation rate? - ANSWER-(...