Expansionary - Study guides, Class notes & Summaries

According to the monetarists, which of the following is true? - ANSWER-Instability in the money supply is the primary cause of economic instability. When the interest rate decreases, the opportunity cost of holding money - ANSWER-decreases, so the quantity of money demanded increases. If the Fed wanted to institute a more expansionary monetary policy, which of the following would it be most likely to do? - ANSWER-buy government bonds from the public When the Fed unexpectedly increases t...

Law of supply When market price increases, supply increases (incentive to supply more is higher because firms can make more $) Movement along the curve Shift in the curve: Changes in supply outside of price (more secular changes - new tech, etc) Law of demand When market price increases, demand decreases Shift in the curve: Changes in demand outside of price (demand can shift to another related good if something affects the original good (E. Coli in beef -- shift to chicken)) Equi...

Most economists agree that the focus of the fiscal policy is to correct answers Balance aggregate demand and aggregate supply The fallacy in the strict crowding-out argument comes from supposing that correct answers The economy's flow of savings is fixed If personal income taxes are increased disposable income and consumption correct answers Decrease Money is an imperfect store of value when correct answers a. the rate of inflation is high. One of the practical issues in the choice ...

SNCOA DLC LDR-301S Mod 1 Lesson 5 Innovation, Agility and Lethality | Questions and Correct Answers | Latest Update 2024/2025 This stage of the innovation continuum focuses on finding a new use for an existing item or process. a. Evolutionary b. Revolutionary c. Expansionary c. Expansionary This is most often the result of individual inspiration and is defined as the generation of new/novel a. Agility b. Creativity c. Innovation

BMAL 590 Macroeconomics Exam Questions and Answers with Guaranteed Pass Which one of the following is not a cost voluntary unemployment? - Answer- mental stress that the unemployment may undergo. Cyclical unemployment is the: - Answer- unemployment that occurs during the recessionary and depressionary parts of the business cycle. The natural rate of unemployment can be described as: - Answer- the sum of frictional unemployment and structural unemployment. According to Keynesian econ...

Macroeconomics Milestone 3 1. Which of the choices below is NOT true about expansionary fiscal policy? A: It will result in an increase in the unemployment rate. 2. Which statement below corresponds to the term "central bank?" A: They have a variety of tools that can be used to control the money supply. 3. Which of

Three Measurement Challenges It is a task for empirical research to assess the macroeconomic impact of the various channels of monetary transmission and to look for changes in the channels’ strength over time. Empirical work on these issues, however, immediately comes up against a number of challenges. The first challenge is that of simultaneity. Typically, the Federal Reserve loosens policy when the economy weakens and tightens when the economy strengthens; this endogenous r...

ECS2602 - Macroeconomics SUMMARY STUDY NOTES 2022. Learning unit 1: An overview of the South African Macroeconomic Environment Economic growth - Economic growth takes place when the total output (production) of goods and services in an economy increases. It is traditionally defined as the annual rate of increase in total output (production) or income in the economy. This definition has to be qualified in two important respects. 1. Production, or income should be measured in real terms ...

AP Macroeconomics Unit 5 Questions And Answers Contractionary monetary policy REDUCES the money supply. The Fed may decide to take a contractionary approach by INCREASING the interest rates. Indicates a shift in AD to the left to full employment, and reduce inflationary pressures Cost Push Inflation increases in the price level (inflation)resulting from an increase in resource costs (for example, raw material prices) and hence in per unit production costs; inflation caused by reducti...

AP Macroeconomics Exam Questions Marking Scheme New Update (Verified A+ Pass) Movement on Short-Run Phillips Curve - Answers - Shift in AD (graph movement is in opposite direction) Shift of Short-Run Phillips Curve - Answers - Shift in SRAS (shift is in opposite direction) Shift of Long-Run Phillips Curve - Answers - Factors of Production/Shift in LRAS (shift is in opposite direction) Factors of Production - Answers - 1. Land 2. Labor 3. Capital 4. Technology 5. Sometimes Foreign...