Inflationary output gap - Study guides, Class notes & Summaries

Which of the following problems of timing may arise in connection with fiscal policy correct answers Operational lags; administrative lags, recognition lags What provides the information needed to assess discretionary policy and determine whether it is expansionary, contractionary, or neutral? correct answers Cyclically adjusted budgets The crowding-out effect is a potential flaw or result of expansionary ___ policy. correct answers fiscal List in order the steps for government to follo...

When consumer confidence falls in an economy, _____ will decrease which is going to be _____ by the spending multiplier. correct answers spending; magnified What does the "paradox of thrift" say? correct answers An economy that saves too much can end up with lower savings. How does the spending multiplier compare between a $1,000 increase in government spending and a $1,000 decrease in taxes collected? correct answers An increase in government spending has a greater multiplier than an eq...

AP WORLD HISTORY _ Unit 5: International Trade and Foreign Exchange Problem Set #5 1. ( ____/30) Define the term and explain a situation that demonstrates the ‘real world’ application of each of the following. Make sure your example clearly demonstrates your understanding of each concept. a. Trade Deficit and Trade Surplus ( ____/10) b. Current Account and Financial Account ( ____/10) c. Appreciation and Depreciation ( ____/10) 2. ( ____/50) The Balance of Payments (BOP) measures all interna...

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...

2.7 Vocabulary & Notes | AP Macroeconomics Questions And Answers Positive Output Gap/Inflationary Gap occurs when actual output is more than fullcapacity output; demand is very high and, to meet that demand, factories and workers operate far above their most efficient capacity A _________ is a consecutive 6 month period of decline in real GDP. recession Recessions that are very intense and/or last for a year or longer are called a ___________. depression During the peak... ...unemplo...

Econ 203 Midterm Exam Actual Questions and Answers Complete 1. Commercial banks create money by: A. printing them. B. keeping a fraction of deposits as reserves and lending the rest. C. they do not, only the central bank can create money. D. none of the above. 2. What is the role of a commercial bank? A. To maximize profits for its shareholders B. To take customers’ deposits and make loans C. To create money through the banking system D. All the answers are correct 3. Which of th...

CFA Level 1 Economics 241 Questions with Answers 2023 Price Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (%t Change in Price) Cross Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (% Change in Price of Substitute or Complement) Income Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (% Change in Income) Price Elasticity of Supply Formula - CORRECT ANSWER (% Change in Quantity Supplied)...

Macro 15Macro 15m for Gabe Xx Exam With Complete Solutions 2024 Price stability relates to an absence of volatility in the inflation rate. In the UK the Bank of England is charged with the responsibility of achieving price stability by ensuring the inflation rate remains around 2% over the medium term. Unemployment relates to the number of people who are willing and able to work at existing wages rates but cannot find a job. LRAS DIAGRAM AD out As the economy grows from y1 to y1 th...

AQA A-level ECONOMICS 7136/2 Paper 2 National and International Economy Question Paper + Mark scheme [MERGED] June 2022 IB/M/Jun22/E5 7136/2 Time allowed: 2 hours Materials For this paper you must have: • an AQA 12-page answer book • a calculator. Instructions • Use black ink or black ball-point pen. Pencil should only be used for drawing. • Write the information required on the front cover of your answer book. The Paper Reference is 7136/2. • In Section A, answer EI...

CFA Level 1 – 101 All Must Knows. 100% Coverage & Mastery. Rated A+ Document Content and Description Below CFA Level 1 – 101 All Must Knows. 100% Coverage & Mastery. Rated A+ Addition Rule of Probability - ☑☑ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - ☑☑Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - ☑☑Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (...