Sticky prices - Study guides, Revision notes & Summaries

Structured essay plans of past exam sticky prices (BMR model) and NKPC-related essay questions. Prepared and used by a first class E&M student to revise for Section B of the Macroeconomics FHS paper.

Explain in simple words what do "sticky prices" mean. correct answers Some prices, like wages and long term contracts, cannot adjust right away when the conditions in the economy change. Since prices cannot react, that means that the self-adjustment mechanism that we studied in the past will be ineffective and unable to bring the economy back to full employment on its own without intervention. The Multiplier: a) What is the definition of the MPC? What is the definition of the Multiplier? ...

Test Bank For Macroeconomics 6th Edition by Stephen Williamson ISBN: 9780137538201. Macroeconomics 6e test bank. TOC:- Table of Contents Part 1: Introduction and Measurement Issues Introduction Measurement Business Cycle Measurement Part 2: Basic Macroeconomic Models: A One-Period Model and Models of Search and Unemployment Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization A Closed-Economy One-Period Macroeconomic Model Search and Unemployment Part 3: E...

ECN CH12 EXAM QUESTIONS WITH ALL CORRECT ANSWERS A change in what that effects our wealth is a movement along AD? - Answer- price level A change in anything (except price level) that effects our wealth is a _______ AD - Answer- shift in Aggregate supply curve - Answer- shows the relationship between the aggregate price level and the quantity of aggregate output in the economy. Why does the SRAS (short run agg supply) curve slope upward? - Answer- Because nominal wages are sticky in th...

ECN 211 ASU Exam 3 With Questions and Correct Answers. Recession - ANSWER -a period of mildly falling incomes and rising unemployment ex. -caused by a leftward shift in aggregate demand and a leftward shift in aggregate supply Depression - ANSWER a severe period of falling incomes and rising unemployment ex. Great Depression The Business Cycle - ANSWER the short-run fluctuations of the economy Economic Fluctuations - ANSWER -are irregular and unpredictable -most macroeconomic variables ...

ECN 211 ASU Exam 3 With Questions and Correct Answers. Recession - ANSWER -a period of mildly falling incomes and rising unemployment ex. -caused by a leftward shift in aggregate demand and a leftward shift in aggregate supply Depression - ANSWER a severe period of falling incomes and rising unemployment ex. Great Depression The Business Cycle - ANSWER the short-run fluctuations of the economy Economic Fluctuations - ANSWER -are irregular and unpredictable -most macroeconomic variables ...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

ECN 211 ASU Exam 3 With Questions and Correct Answers. Recession - ANSWER -a period of mildly falling incomes and rising unemployment ex. -caused by a leftward shift in aggregate demand and a leftward shift in aggregate supply Depression - ANSWER a severe period of falling incomes and rising unemployment ex. Great Depression The Business Cycle - ANSWER the short-run fluctuations of the economy Economic Fluctuations - ANSWER -are irregular and unpredictable -most macroeconomic variables ...

What is Macroeconomics?* correct answers Macroeconomics is the study of aggregate behavior, including, unemployment, inflation, recessions, and other economy wide phenomenon. What is the difference between microeconomics and macroeconomics?* correct answers Macroeconomics = the study of aggregate behavior, including, unemployment, inflation, recessions, and other economy wide phenomenon. Microeconomics = The study of individual decision making by firms and individuals. What are the thr...

Macro Econ: Taylor Econ Study Guide Exam. 1. ________________ economists place an emphasis on __________ run economic performance. A. Phillips; short B. Keynesian; long C. Neoclassical; long D. Says; short - CORRECT ANSWER C. Neoclassical 2. The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________. A. long term growth; cyclical unemployment B. potential GDP; natural rate of ...