PDF / COST PUSH INFLATION MAY BE CAUSED BY DOWNLOAD

Size: px
Start display at page:

Download "PDF / COST PUSH INFLATION MAY BE CAUSED BY DOWNLOAD"

Transcription

1 22 April, 2018 PDF / COST PUSH INFLATION MAY BE CAUSED BY DOWNLOAD Document Filetype: PDF KB 0

2 PDF / COST PUSH INFLATION MAY BE CAUSED BY DOWNLOAD Inflation caused by rising costs of production. Cost-push inflation is caused by disruptions in supply. Such an inflation may arise from any individual factor that increases aggregate demand, but the main ones that generate ongoing increases in aggregate demand are. This post may help for the ones who are really behind from others. (and for the ones who are not able to watch the video for aggregate demand). Cost-push inflation is generally caused by three factors. Those factors are: * Supply of money goes up. * Supply of goods goes down. Cost push inflation is normally a short term economic problem. The inflation may be started in the first instance either by cost-push factors or by demand pull factors both work and interact to cause sustained inflation over time. This may be due to natural disasters, or increased prices of inputs. There are a number of reasons for the possible rise... A very effective way to reduce the cost push inflation is by direct intervention or prices and incomes' policy The chief cause of inflation in one year might not be the same as in the next year. The most common cause of cost-push inflation starts with an increase in the cost of production, which may be unexpected. There are many reasons why costs might rise: 1. Cost-push inflation, also called "supply shock inflation," is caused by a drop in aggregate supply (potential output). Inflation may occur when there is a depreciation of the home currency. To read PDF / COST PUSH INFLATION MAY BE CAUSED BY DOWNLOAD PDF, please click the hyperlink and save the ebook or have accessibility to other information which might be relevant to PDF / COST PUSH INFLATION MAY BE CAUSED BY DOWNLOAD book. 1

3 Other Useful References Following are some other ebook linked to "PDF / Cost Push Inflation May Be Caused By Download". Cost-push Inflation May Be Caused By Inflation caused by rising costs of production. Cost-push inflation is caused by disruptions in supply. Such an inflation may arise from any individual factor that increases aggregate demand, but the main ones that generate ongoing increases in aggregate demand are. This post may help for the ones who are really behind from others. (and for the ones who are not able to watch the video for aggregate demand). Cost-push inflation is generally... Cost Push Inflation Example Consumers have more money to buy cars, and the prices of cars and car parts rise as a result. Cost-push inflation is caused by an increase in costs. Natural disasters that do not lead to higher costs of production do not qualify as an example of this type of inflation. The cost-push inflation can also be illustrated with the aggregate demand and supply curves. (for example. Which scenario is an example of... Cost-push Inflation Is Caused By Persistent C.Cost-push inflation tends to be more persistent than demand-pull inflation. A situation that has been often cited of this was the oil crisis of the 1970s, which some economists see as a major cause of the inflation experienced in the Western world in Cost-push inflation places responsibility for. Economists wake up in the morning hoping for a chance to debate the causes of inflation. A Demand Pull Inflation Process The process. Inflation... Demand-pull Inflation Often, the economy is almost at their productive capacity and therefore instead of increase productivity and supply, there is a price increase, therefore increasing inflation. Demand pull inflation usually occurs when there is an increase in aggregate monetary demand caused by an increase in one or more of the components of aggregate demand (AD). Demand-pull inflation definition, inflation in which rising demand results in a rise in prices. Generally, cost push inflation... 2

4 Cost-push Inflation Is Due To: Two Types of Inflation and the Keynesian Dilemma. When there is a decrease in the aggregate supply of goods and services due to an increase in the cost of prod. Causes responsible for the rise of Cost Push Inflation: Cost Push Inflation develops when the high cost of inputs lead. If demand-pull inflation due to a goose in consumer Essay Question 5. Cost-push inflation is a type of inflation caused by... Cost Push Inflation Examples Inflation definition: Inflation is a general increase in the prices of goods and services in a country. Meaning, pronunciation, translations and examples. Another example of Demand Pull Inflation in action would be the. Cost-push inflation occurs when firms respond to rising costs by increasing prices in order to protect their profit margins. How to use inflation in a sentence. Cost push inflation simply means a general increase in price. Other factors... When Production Costs Increase And Producers Raise Output Prices The Result Is Producers are often given some time to. ECON 150 BETA Site Section. Supply and demand can also be affected. Best Answer: When production costs increase, then that cost increase will have to reflect on price - price will go up (otherwise the profit margin will decrease. China steel giant to raise output by 20%. "As a result of the completion of main production lines at. "The price increase in March was the... Cost-push Theory Of Inflation We reckon that cost-push price increases (or so-called "cost-push inflation") does not merit to be called inflation, because it is only temporary. Before we get into what causes inflation, let's review the definition of inflation. Within the last few months there has broken out in several places the theory that we are now confronted with a "new" kind of inflation. The absolute cunt of all inflation problems. According to the cost-push theory,... 3

5 According To The Demand-pull Theory What Is Responsible For Inflation? Conventional Demand-Pull Inflation: The market power theory of inflation represents one extreme end of inflation. Learn exactly what happened in this chapter, scene, or section of Aggregate Demand and what it means. Causes responsible for the rise of Cost Push Inflation:. A numerous supply side and demand side factors could be responsible for this surge in inflation. According to the Quantity Theory:a. Rapid expansion of bank credit is also responsible for the. Demand Pull Inflation Causes Inflation is mainly caused either by demand Pull factors or Cost Push factors. Both types of inflation cause an increase in the overall price level within an economy. This lesson talks about the various causes of Demand Pull Inflation such as Deficit Financing, Increase in Money Supply, increasing government expenditure, Black money, Population pressure and much more. It is a form of demand-pull inflation. The Phillips curve shows the inverse relationship between... Cost-push Inflation Occurs Because Of A: What is supply side inflation?. (also called Supply Side inflation). Inflation can occur because of. Because at least with demand-pull inflation. A fall or left shift in Aggregate Supply is the cause of Cost-Push Inflation. Inflation is the economic phenomena where a currency is devalued because of an increase in the money supply relative. Distinguish Between Cost Push and Demand Pull Inflation. Inflation is likely to occur because: Imports are more expensive... 3 Causes Of Inflation For this reason, there has never been a general agreement on the causes of inflation. It is not possible to specify any particular cause or causes of inflation. Former leads to a rightward shift of the aggregate. What is the quantity theory of money? Learn more about what inflation is, including what causes it and what its effects are. Inflation - General Definition: Inflation indicates the rise in price of a basket... 4

[E-BOOK] DEMAND PULL INFLATION CAUSES

[E-BOOK] DEMAND PULL INFLATION CAUSES 26 June, 2018 [E-BOOK] DEMAND PULL INFLATION CAUSES Document Filetype: PDF 498.6 KB 0 [E-BOOK] DEMAND PULL INFLATION CAUSES Inflation is mainly caused either by demand Pull factors or Cost Push factors.

More information

HOW DO INTEREST RATES AFFECT INFLATION

HOW DO INTEREST RATES AFFECT INFLATION 04 July, 2018 HOW DO INTEREST RATES AFFECT INFLATION Document Filetype: PDF 416.89 KB 0 HOW DO INTEREST RATES AFFECT INFLATION The point of implementing policy through raising or lowering interest rates

More information

ECON 330: Money and Banking HW 14 Solution

ECON 330: Money and Banking HW 14 Solution ECON 330: Money and Banking HW 14 Solution Based on Steven Zhang, edited by Alan Yang 22.5 As labor productivity grows, the long-run aggregate supply curve shifts to the right. This is because the existing

More information

Canadian Inflation, Unemployment, and Business Cycle

Canadian Inflation, Unemployment, and Business Cycle 28 Canadian Inflation, Unemployment, and Business Cycle Learning Objectives Explain how demand-pull and cost-push forces bring cycles in inflation and output Explain the short-run and long-run tradeoff

More information

UNIVERSITY OF MIAMI Principles of Macroeconomics (ECO 212) Answer Key to the Third Sample Midterm Professor Adrian Peralta-Alva

UNIVERSITY OF MIAMI Principles of Macroeconomics (ECO 212) Answer Key to the Third Sample Midterm Professor Adrian Peralta-Alva UNIVERSITY OF MIAMI Principles of Macroeconomics (ECO 212) Answer Key to the Third Sample Midterm Professor Adrian Peralta-Alva Section I. Multiple-choice questions (80 points total). Clearly mark what

More information

AS-AD Model. Prof. Irina A. Telyukova UBC Economics 345 Fall 2008

AS-AD Model. Prof. Irina A. Telyukova UBC Economics 345 Fall 2008 AS-AD Model Prof. Irina A. Telyukova UBC Economics 345 Fall 2008 Outline Now that we know how to model money supply and money demand, we take a quick look at one model of the aggregate economy. Aggregate

More information

Principles of Macroeconomics December 17th, 2005 name: Final Exam (100 points)

Principles of Macroeconomics December 17th, 2005 name: Final Exam (100 points) EC132.02 Serge Kasyanenko Principles of Macroeconomics December 17th, 2005 name: Final Exam (100 points) This is a closed-book exam - you may not use your notes and textbooks. Calculators are not allowed.

More information

Canadian Inflation, Unemployment, and Business Cycle

Canadian Inflation, Unemployment, and Business Cycle 28 Canadian Inflation, Unemployment, and Business Cycle After studying this chapter you will be able to! Explain how demand-pull and cost-push forces bring cycles in inflation and output! Explain the short-run

More information

Inflation. Image Source: Flickr

Inflation. Image Source: Flickr Inflation Image Source: Flickr Inflation is a primary concern for economists, voters, and policy makers alike. It is the major factor that affects unemployment and consumer s ability to buy or sell their

More information

ECONOMIC TERM FOR INCOME EBOOK

ECONOMIC TERM FOR INCOME EBOOK 12 April, 2018 ECONOMIC TERM FOR INCOME EBOOK Document Filetype: PDF 427.97 KB 0 ECONOMIC TERM FOR INCOME EBOOK Terms similar to developed country include. What does Economic income mean in finance?. Reducing

More information

Review. Question 1. Answer 1. Question 2. Answer 2. Question 3. Exam Review (Questions Beyond Test 1) True or False? True or False?

Review. Question 1. Answer 1. Question 2. Answer 2. Question 3. Exam Review (Questions Beyond Test 1) True or False? True or False? Question 1 Review Exam Review (Questions Beyond Test 1) An increase in income causes the IS curve to shift to the right. Answer 1 When income changes we move along the IS curve. Income itself is not an

More information

Chapter 13 Aggregate Demand, Aggregate Supply, Equilibrium, and Inflation. Kazu Matsuda BIZ 203 Macroeconomics

Chapter 13 Aggregate Demand, Aggregate Supply, Equilibrium, and Inflation. Kazu Matsuda BIZ 203 Macroeconomics Chapter 13 Aggregate Demand, Aggregate Supply, Equilibrium, and Inflation Kazu Matsuda BIZ 203 Macroeconomics THE AGGREGATE DEMAND CURVE? = The total demand for goods and services in the economy. DERIVING

More information

INFLATION, JOBS, AND THE BUSINESS CYCLE*

INFLATION, JOBS, AND THE BUSINESS CYCLE* Chapt er 12 INFLATION, JOBS, AND THE BUSINESS CYCLE* Key Concepts Inflation Cycles1 In the long run inflation occurs because the quantity of money grows faster than potential GDP. Inflation can start as

More information

22/03/2012. Inflation Cycles. The 1920s were years of unprecedented prosperity.

22/03/2012. Inflation Cycles. The 1920s were years of unprecedented prosperity. The 1920s were years of unprecedented prosperity. Then, in October 1929, the stock market crashed. Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen

More information

Monetary Policy in the Wake of the Crisis Olivier Blanchard

Monetary Policy in the Wake of the Crisis Olivier Blanchard Monetary Policy in the Wake of the Crisis Olivier Blanchard Let me start with my bottom line: Before the crisis, mainstream economists and policymakers had converged on a beautiful construction for monetary

More information

Macroeconomics II. Lecture 07: AS, Inflation, and Unemployment. IES FSS (Summer 2017/2018)

Macroeconomics II. Lecture 07: AS, Inflation, and Unemployment. IES FSS (Summer 2017/2018) Lecture 07: AS, Inflation, and Unemployment IES FSS (Summer 2017/2018) Section 1 We already mentioned frictions - we said that one cause of frictions are sticky prices So far we have not discussed AS much:

More information

Revision Sheets. AS Economics National Economy in a Global Context. Revision Sheets

Revision Sheets. AS Economics National Economy in a Global Context. Revision Sheets 2018 http://www.publicdomainpictures.net/pictures/150000/velka/uk-map.jpg AS Economics National Economy in a Global Context Macroeconomic Objectives Low unemployment Improve external performance Objectives

More information

6. The Aggregate Demand and Supply Model

6. The Aggregate Demand and Supply Model 6. The Aggregate Demand and Supply Model 1 Aggregate Demand and Supply Curves The Aggregate Demand Curve It shows the relationship between the inflation rate and the level of aggregate output when the

More information

The answer lies in the role of the exchange rate, which is determined in the foreign exchange market.

The answer lies in the role of the exchange rate, which is determined in the foreign exchange market. In yesterday s lesson we saw that the market for loanable funds shows us how financial capital flows into or out of a nation s financial account. Goods and services also flow, but this flow is tracked

More information

Principles of Macroeconomics December 15th, 2005 name: Final Exam (100 points)

Principles of Macroeconomics December 15th, 2005 name: Final Exam (100 points) EC132.01 Serge Kasyanenko Principles of Macroeconomics December 15th, 2005 name: Final Exam (100 points) This is a closed-book exam - you may not use your notes and textbooks. Calculators are not allowed.

More information

7. Refer to the above graph. It depicts an economy in the: A. Immediate short run B. Short run C. Immediate long run D. Long run

7. Refer to the above graph. It depicts an economy in the: A. Immediate short run B. Short run C. Immediate long run D. Long run CHAPTER 29 1. When the price level decreases: A. The demand for money falls and the interest rate falls B. Holders of financial assets with fixed money values decrease their spending C. Holders of financial

More information

MACROECONOMICS. Section I Time 70 minutes 60 Questions

MACROECONOMICS. Section I Time 70 minutes 60 Questions MACROECONOMICS Section I Time 70 minutes 60 Questions Directions: Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

More information

Distinguish between the three broad functions of government.

Distinguish between the three broad functions of government. ECS60 SOME SUGGESTED SOLUTIONS MAY/JUNE 206 SECTION A Question a Define money Money is anything that is commonly accepted as payment for goods and services, or that is accepted in settlement of debts.

More information

IB Economics Macroeconomic Policies Student activity: 2.10 Low and Stable Rate of Inflation

IB Economics Macroeconomic Policies Student activity: 2.10 Low and Stable Rate of Inflation Student activity: 2.10 Low and Stable Rate of Inflation IB Economics: www.ibdeconomics.com 2.10 INFLATION: STUDENT LEARNING ACTIVITY Answer the questions that follow. 1. DEFINITIONS Define the following

More information

November 25, AP Inflation.notebook. Goal #3 Price Stability. What is inflation? Inflation is a general rise in prices.

November 25, AP Inflation.notebook. Goal #3 Price Stability. What is inflation? Inflation is a general rise in prices. AP Inflation.notebook Goal #3 Price Stability Country and Time Zimbabwe, 2008 Annual Inflation Rate 79,600,000,000% Time for Prices to Double 24.7 hours What is inflation? Inflation is a general rise in

More information

Introduction. Learning Objectives. Chapter 17. Stabilization in an Integrated World Economy

Introduction. Learning Objectives. Chapter 17. Stabilization in an Integrated World Economy Chapter 17 Stabilization in an Integrated World Economy Introduction For more than 50 years, many economists have used an inverse relationship involving the unemployment rate and real GDP as a guide to

More information

Chapter 7. SAVING, INVESTMENT and FINIANCE. Income not spent is saved. Where do those dollars go?

Chapter 7. SAVING, INVESTMENT and FINIANCE. Income not spent is saved. Where do those dollars go? Chapter 7 SAVING, INVESTMENT and FINIANCE Income not spent is saved. Where do those dollars go? Describe financial markets Explain how financial markets channel saving to investment Explain how governments

More information

THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND

THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND 21 THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND LEARNING OBJECTIVES: By the end of this chapter, students should understand: the theory of liquidity preference as a short-run theory

More information

Econ 330 Final Exam Name ID Section Number

Econ 330 Final Exam Name ID Section Number Econ 330 Final Exam Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A group of economists believe that the natural rate

More information

THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND

THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND 20 THE INFLUENCE OF MONETARY AND FISCAL POLICY ON AGGREGATE DEMAND LEARNING OBJECTIVES: By the end of this chapter, students should understand: the theory of liquidity preference as a short-run theory

More information

FINAL EXAM GROUP B. Instructions: EC and EC ID #: Spring May 26, 2015

FINAL EXAM GROUP B. Instructions: EC and EC ID #: Spring May 26, 2015 EC102.03 and EC 102.05 NAME: ID #: Spring 2015 FINAL EXAM GROUP B May 26, 2015 Instructions: You have 100 minutes to complete the exam. There will be no extensions. The exam consists of 50 multiple choice

More information

BUSI 101 Capital Markets and Real Estate

BUSI 101 Capital Markets and Real Estate BUSI 101 Capital Markets and Real Estate PURPOSE AND SCOPE The Capital Markets and Real Estate course (BUSI 101) is intended to acquaint the student with the basic principles of macroeconomics and to give

More information

Macroeconomics I International Group Course

Macroeconomics I International Group Course Learning objectives Macroeconomics I International Group Course 2004-2005 Topic 4: INTRODUCTION TO MACROECONOMIC FLUCTUATIONS We have already studied how the economy adjusts in the long run: prices are

More information

Review Questions for Econ1101 Final, Part 1

Review Questions for Econ1101 Final, Part 1 Review Questions for Econ1101 Final, Part 1 SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 1) Define opportunity cost. A student who has just graduated

More information

Karl Marx and Market Failure

Karl Marx and Market Failure Unit 3 Karl Marx and Market Failure Krugman Module 74 pp. 723-726; Module 76 pp. 743-750; Module 77 pp.754-756; Module 78 pp. 761-770; Module 79 pp. 782-785 Modules 17-19 pp. 172 198 1 Greed is Good. -The

More information

Business Cycle Theory

Business Cycle Theory Business Cycle Theory Changes in Business Activity Economics, Unit: 06 Lesson: 01 Objectives 1.Describe phases of business cycle 2.Identify and explain the factors that cause business cycles 3.Analyze

More information

FILE WHAT IS CURRENT DEFICIT

FILE WHAT IS CURRENT DEFICIT 12 July, 2018 FILE WHAT IS CURRENT DEFICIT Document Filetype: PDF 455.45 KB 0 FILE WHAT IS CURRENT DEFICIT A Current Account is a Bank Account opened in the name of abusiness establishment. America has

More information

Exam #3 Section # 11, 12 or 13 December 2012

Exam #3 Section # 11, 12 or 13 December 2012 Economics 211 Macroeconomic Principles Exam #3 Section # 11, 12 or 13 December 2012 Name The value of this exam is 102 points plus 10 points for the Bonus Question. Instructor: Brian B. Young Please show

More information

Unemployment and Inflation

Unemployment and Inflation Unemployment and Inflation By A. V. Vedpuriswar October 15, 2016 Inflation This refers to the phenomenon by which the price level rises and money loses value. There are two kinds of inflation: Demand pull

More information

Final Exam - Economics 101 (Fall 2009) You will have 120 minutes to complete this exam. There are 105 points and 7 pages

Final Exam - Economics 101 (Fall 2009) You will have 120 minutes to complete this exam. There are 105 points and 7 pages Name Student ID Section day and time Final Exam - Economics 101 (Fall 2009) You will have 120 minutes to complete this exam. There are 105 points and 7 pages Multiple Choice: (20 points total, 2 points

More information

INTEREST RATES Overview Real vs. Nominal Rate Equilibrium Rates Interest Rate Risk Reinvestment Risk Structure of the Yield Curve Monetary Policy

INTEREST RATES Overview Real vs. Nominal Rate Equilibrium Rates Interest Rate Risk Reinvestment Risk Structure of the Yield Curve Monetary Policy INTEREST RATES Overview Real vs. Nominal Rate Equilibrium Rates Interest Rate Risk Reinvestment Risk Structure of the Yield Curve Monetary Policy Some of the following material comes from a variety of

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Final Exam Practice Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In an economy with no government or foreign sector, it is always true

More information

Taylor and Mishkin on Rule versus Discretion in Fed Monetary Policy

Taylor and Mishkin on Rule versus Discretion in Fed Monetary Policy Taylor and Mishkin on Rule versus Discretion in Fed Monetary Policy The most debatable topic in the conduct of monetary policy in recent times is the Rules versus Discretion controversy. The central bankers

More information

Knowledge Series : Inflation. February 2009

Knowledge Series : Inflation. February 2009 Knowledge Series : Inflation February 2009 Price Shocks? Fiscal measures? Declining output? Excess money supply? Inflation Monetary tightening? 2 3 Introduction to Inflation - Inflation

More information

Tradeoff Between Inflation and Unemployment

Tradeoff Between Inflation and Unemployment CHAPTER 13 Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment Questions for Review 1. In this chapter we looked at two models of the short-run aggregate supply curve. Both models

More information

AGGREGATE DEMAND AGGREGATE SUPPLY

AGGREGATE DEMAND AGGREGATE SUPPLY AGGREGATE DEMAND 8 AND CHAPTER AGGREGATE SUPPLY A Way to View the Economy We can think of an economy as consisting of two major activities: buying and producing. When economists speak about aggregate demand,

More information

Chapter 15 Testbank. A. cost-of-living indicator. B. consumption production index. C. consumer production index. D. consumer price index.

Chapter 15 Testbank. A. cost-of-living indicator. B. consumption production index. C. consumer production index. D. consumer price index. Chapter 15 Testbank 1. The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the: A.

More information

CHAPTER 15 Long-Run Macroeconomic Adjustments

CHAPTER 15 Long-Run Macroeconomic Adjustments PART 5: THE LONG RUN AND CURRENT ISSUES IN MACRO THEORY AND POLICY CHAPTER 15 Long-Run Macroeconomic Adjustments Slides prepared by Bruno Fullone, George Brown College 2010 McGraw-Hill Ryerson Limited

More information

Determining the Quantity Demanded of an Asset

Determining the Quantity Demanded of an Asset Determining the Quantity Demanded of an Asset Wealth the total resources owned by the individual, including all assets Expected Return the return expected over the next period on one asset relative to

More information

3. OPEN ECONOMY MACROECONOMICS

3. OPEN ECONOMY MACROECONOMICS 3. OEN ECONOMY MACROECONOMICS The overall context within which open economy relationships operate to determine the exchange rates will be considered in this chapter. It is simply an extension of the closed

More information

Chapter 19 MONEY SUPPLIES, PRICE LEVELS, AND THE BALANCE OF PAYMENTS

Chapter 19 MONEY SUPPLIES, PRICE LEVELS, AND THE BALANCE OF PAYMENTS Chapter 19 MONEY SUPPLIES, PRICE LEVELS, AND THE BALANCE OF PAYMENTS In the Keynesian model, the international transmission of shocks took place via the trade balance, with changes in national income or

More information

Study Questions (with Answers) Lecture 15 International Macroeconomics

Study Questions (with Answers) Lecture 15 International Macroeconomics Study Questions (with Answers) Page 1 of 5 Study Questions (with Answers) Lecture 15 International Macroeconomics Part 1: Multiple Choice Select the best answer of those given. 1. If the aggregate supply

More information

Archimedean Upper Conservatory Economics, November 2016 Quiz, Unit VI, Stabilization Policies

Archimedean Upper Conservatory Economics, November 2016 Quiz, Unit VI, Stabilization Policies Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The federal budget tends to move toward _ as the economy. A. deficit; contracts B. deficit; expands C.

More information

The Short-Run Tradeoff Between Inflation and Unemployment

The Short-Run Tradeoff Between Inflation and Unemployment Chapter 33 The Short-Run Tradeoff Between Inflation and Unemployment Test B 1. The short-run effects of an increase in government expenditures are shown in the graph as a. a movement from A to B and 1

More information

Econ 102 Final Exam Name ID Section Number

Econ 102 Final Exam Name ID Section Number Econ 102 Final Exam Name ID Section Number 1. Assume that the economy is contracting and unemployment is rising. Which of the following would be a logical explanation for a sudden fall in the unemployment

More information

SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR II SEMESTER II END SEMESTER EXAMINATION APRIL 2015

SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR II SEMESTER II END SEMESTER EXAMINATION APRIL 2015 All Rights Reserved No. of Pages - 09 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR II SEMESTER II END SEMESTER EXAMINATION APRIL

More information

Copyright 2017 by the UBC Real Estate Division

Copyright 2017 by the UBC Real Estate Division DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate

More information

Overview. Stanley Fischer

Overview. Stanley Fischer Overview Stanley Fischer The theme of this conference monetary policy and uncertainty was tackled head-on in Alan Greenspan s opening address yesterday, but after that it was more central in today s paper

More information

II. Determinants of Asset Demand. Figure 1

II. Determinants of Asset Demand. Figure 1 University of California, Merced EC 121-Money and Banking Chapter 5 Lecture otes Professor Jason Lee I. Introduction Figure 1 shows the interest rates for 3 month treasury bills. As evidenced by the figure,

More information

Please choose the most correct answer. You can choose only ONE answer for every question.

Please choose the most correct answer. You can choose only ONE answer for every question. Please choose the most correct answer. You can choose only ONE answer for every question. 1. Only when inflation increases unexpectedly a. the real interest rate will be lower than the nominal inflation

More information

GO ON TO THE NEXT PAGE. -8- Unauthorized copying or reuse of any part of this page is illegal.

GO ON TO THE NEXT PAGE. -8- Unauthorized copying or reuse of any part of this page is illegal. 30. Which of the following is most likely to be caused by an adverse supply shock? (A) Structural unemployment (B) Frictional unemployment (C) Demand-pull inflation (D) Cost-push inflation (E) Deflation

More information

Chapter 9: The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis

Chapter 9: The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis Chapter 9: The IS-LM/AD-AS Model: A General Framework for Macroeconomic Analysis Cheng Chen SEF of HKU November 2, 2017 Chen, C. (SEF of HKU) ECON2102/2220: Intermediate Macroeconomics November 2, 2017

More information

Oxford Energy Comment March 2009

Oxford Energy Comment March 2009 Oxford Energy Comment March 2009 Reinforcing Feedbacks, Time Spreads and Oil Prices By Bassam Fattouh 1 1. Introduction One of the very interesting features in the recent behaviour of crude oil prices

More information

Practical Problems with Discretionary Fiscal Policy

Practical Problems with Discretionary Fiscal Policy Practical Problems with Discretionary Fiscal Policy By: OpenStaxCollege In the early 1960s, many leading economists believed that the problem of the business cycle, and the swings between cyclical unemployment

More information

III. 9. IS LM: the basic framework to understand macro policy continued Text, ch 11

III. 9. IS LM: the basic framework to understand macro policy continued Text, ch 11 Objectives: To apply IS-LM analysis to understand the causes of short-run fluctuations in real GDP and the short-run impact of monetary and fiscal policies on the economy. To use the IS-LM model to analyse

More information

Business Environment.2. Week 6. Inflation

Business Environment.2. Week 6. Inflation Business Environment.2 Week 6 Inflation 1 Definition "In simple words, inflation is a persistent and appreciable rise in the general price level". 2 Classification Inflation has been classified in many

More information

FILE / NET CURRENT ASSET VALUE EBOOK

FILE / NET CURRENT ASSET VALUE EBOOK 17 February, 2018 FILE / NET CURRENT ASSET VALUE EBOOK Document Filetype: PDF 208.27 KB 0 FILE / NET CURRENT ASSET VALUE EBOOK The stocks are filtered through their scorecard to increase the odds of picking

More information

ECO 209Y MACROECONOMIC THEORY AND POLICY. Term Test #2. December 13, 2017

ECO 209Y MACROECONOMIC THEORY AND POLICY. Term Test #2. December 13, 2017 ECO 209Y MACROECONOMIC THEORY AND POLICY Term Test #2 December 13, 2017 U of T E-MAIL: @MAIL.UTORONTO.CA SURNAME (LAST NAME): GIVEN NAME (FIRST NAME): UTORID (e.g., LIHAO118): INSTRUCTIONS: The total time

More information

ECO403 Macroeconomics Solved Online Quiz For Midterm Exam Preparation Spring 2013

ECO403 Macroeconomics Solved Online Quiz For Midterm Exam Preparation Spring 2013 ECO403 Macroeconomics Solved Online Quiz For Midterm Exam Preparation Spring 2013 Question # 1 of 15 ( Start time: 03:22:55 PM ) Total Marks: 1 If the U.S. real exchange rate increases, then U.S. ----------------

More information

Garden City High School Course: AP Macroeconomics

Garden City High School Course: AP Macroeconomics Garden City High School Course: AP Macroeconomics Instructional Philosophy The Advanced Placement Macroeconomics curriculum is a full year program designed to provide both an overview of economics. Economics

More information

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy Unit 3: Aggregate Demand and Supply and Fiscal Policy 1 Aggregate Demand 2 What is Aggregate Demand? Aggregate means added all together. When we use aggregates we combine all prices and all quantities.

More information

5 Macroeconomics SAMPLE QUESTIONS

5 Macroeconomics SAMPLE QUESTIONS MULTIPLE-CHOICE UNIT E09 Macroeconomics Summative Exam Sample Multiple-Choice Questions Circle the letter of each correct answer. 1. Which of the following monetary and fiscal policy combinations would

More information

ECON 442:ECONOMIC THEORY II (MACRO) 8 1: W/C

ECON 442:ECONOMIC THEORY II (MACRO) 8 1: W/C ECON 442:ECONOMIC THEORY II (MACRO) Lecture 8 Part 1: W/C 27 March 2017 Aggregate Demand & General Equilibrium Analysis (The AS-AD Model) Ebo Turkson, PhD From the Short to the Medium Run: The IS-LM-PC

More information

Choose the one alternative that best completes the statement or answers the question.

Choose the one alternative that best completes the statement or answers the question. Econ 330 Spring 2017: EXAM 1 Name ID Section Number MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) If market participants notice that a variable

More information

Principles of Macroeconomics

Principles of Macroeconomics Principles of Macroeconomics Prof. Dr. Dennis A. V. Dittrich Touro College Berlin 2015 Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift outward in the AD curve)

More information

download instant at

download instant at Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The aggregate supply curve 1) A) shows what each producer is willing and able to produce

More information

Macroeconomics (Code: E214) - Lecturer: Dr. Amira Akl Ahmed. Faculty of Commerce Department of Economics English Section Academic year 2013/2014

Macroeconomics (Code: E214) - Lecturer: Dr. Amira Akl Ahmed. Faculty of Commerce Department of Economics English Section Academic year 2013/2014 Faculty of Commerce Department of Economics English Section Academic year 2013/2014 Questions for Chapter 6 of Macroeconomics, 10e (Parkin) First: Multiple choice questions The Basics of Economic Growth

More information

FACULTY NAME: MANAGEMENT SCIENCE NAME OF DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE. Intermediate Macro-Economics

FACULTY NAME: MANAGEMENT SCIENCE NAME OF DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE. Intermediate Macro-Economics FACULTY NAME: MANAGEMENT SCIENCE NAME OF DEPARTMENT: ACCOUNTING, ECONOMICS AND FINANCE COURSE NAME: COURSE CODE: Intermediate Macro-Economics IMA612S DATE: January 2016 MARKS: 100 DURATION: 3 Hours SECOND

More information

chapter: Aggregate Demand and Aggregate Supply 10(1 st ) or 12(2 nd ) ECON Feb. 1, 3, 5 1of Worth Publishers

chapter: Aggregate Demand and Aggregate Supply 10(1 st ) or 12(2 nd ) ECON Feb. 1, 3, 5 1of Worth Publishers chapter: 10(1 st ) or 12(2 nd ) >> Aggregate Demand and Aggregate Supply ECON 2020-010 Feb. 1, 3, 5 2009 Worth Publishers 1of 58 Opening Example Who is the chairman of the Federal Reserve? Federal reserve:

More information

ECON Drexel University Summer 2008 Assignment 2. Due date: July 29, 2008

ECON Drexel University Summer 2008 Assignment 2. Due date: July 29, 2008 ECON 202-001 Drexel University Summer 2008 Assignment 2 Due date: July 29, 2008 Instructor: Yuan Yuan Name This homework has up to 10 points bonus. Question 1 (40 points, 2 points each): MULTIPLE CHOICE.

More information

ECON 201. The Business Cycle. Business Cycle 4 phases 10/1/2009. Chapter 6 Business Cycles, Unemployment, & Inflation

ECON 201. The Business Cycle. Business Cycle 4 phases 10/1/2009. Chapter 6 Business Cycles, Unemployment, & Inflation ECON 201 Chapter 6 Business Cycles, Unemployment, & Inflation The Business Cycle The U.S. has experienced economic instability associated with business cycles. Business Cycles alternating rises and declines

More information

Suggested Answers Problem Set # 5 Economics 501 Daniel

Suggested Answers Problem Set # 5 Economics 501 Daniel 1. Use graphs of IS-LM-FE and AS-AD models to explain why RBC models with productivity shocks and money-supply shocks fail to explain the pro-cyclicality of money growth and inflation. Inflation falls

More information

Chapter 7. SAVING, INVESTMENT and FINIANCE. Income not spent is saved. Where do those dollars go?

Chapter 7. SAVING, INVESTMENT and FINIANCE. Income not spent is saved. Where do those dollars go? Chapter 7 SAVING, INVESTMENT and FINIANCE Income not spent is saved. Where do those dollars go? Describe financial markets. Explain how financial markets channel saving to investment. Explain how government

More information

Econ 98- Chiu Spring 2005 Final Exam Review: Macroeconomics

Econ 98- Chiu Spring 2005 Final Exam Review: Macroeconomics Disclaimer: The review may help you prepare for the exam. The review is not comprehensive and the selected topics may not be representative of the exam. In fact, we do not know what will be on the exam.

More information

TOPIC 7. Unemployment, Inflation and Economic Policy

TOPIC 7. Unemployment, Inflation and Economic Policy TOPIC 7 Unemployment, Inflation and Economic Policy What is Equilibrium for the Economy? Short run equilibrium: AD = SRAS and IS = LM The Labor Market need not be in equilibrium We need not be at the potential

More information

What is Equilibrium for the Economy?

What is Equilibrium for the Economy? TOPIC 7 Unemployment, Inflation and Economic Policy What is Equilibrium for the Economy? Short run equilibrium: AD = SRAS and IS = LM The Labor Market need not be in equilibrium We need not be at the potential

More information

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester

Eastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2015-16 Spring Semester Duration: 90 minutes ECON102 - Introduction to Economics II Final Exam Type A 2 June 2016

More information

1 of 15 12/1/2013 1:28 PM

1 of 15 12/1/2013 1:28 PM 1 of 15 12/1/2013 1:28 PM Policy tools include Population growth, spending behavior, and invention. Wars, natural disasters, and trade disruptions. Tax policy, government spending, and the availability

More information

Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level. Published

Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level. Published Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level ECONOMICS 9708/22 Paper 2 Data Response and Essay MARK SCHEME Maximum Mark: 40 Published This mark scheme

More information

Multiple Choice Questions (3 points each) Please answer the questions on the green scantron.

Multiple Choice Questions (3 points each) Please answer the questions on the green scantron. ECON 203-200, Fall 2006 EXAM #1 Multiple Choice Questions (3 points each) Please answer the questions on the green scantron. 1) Which of the following would NOT lead to a shift in demand curve for spinach:

More information

Game Theory and Economics Prof. Dr. Debarshi Das Department of Humanities and Social Sciences Indian Institute of Technology, Guwahati

Game Theory and Economics Prof. Dr. Debarshi Das Department of Humanities and Social Sciences Indian Institute of Technology, Guwahati Game Theory and Economics Prof. Dr. Debarshi Das Department of Humanities and Social Sciences Indian Institute of Technology, Guwahati Module No. # 03 Illustrations of Nash Equilibrium Lecture No. # 02

More information

Unit 3: Aggregate Demand and Supply and Fiscal Policy

Unit 3: Aggregate Demand and Supply and Fiscal Policy Unit 3: Aggregate Demand and Supply and Fiscal Policy 1 Demand and Supply Review 1. Define Demand and the Law of Demand. 2. Identify the three concepts that explain why demand is downward sloping. 3. Identify

More information

Practice Test 1: Multiple Choice

Practice Test 1: Multiple Choice Practice Test 1: Multiple Choice 1. If aggregate planned expenditure exceeds real GDP A. actual inventories decrease below their target. B. firms are not maximizing their profits. C. planned consumption

More information

Economics is the study of decision making

Economics is the study of decision making TOPIC 1 - INTRODUCTION TO THE GLOBAL ECONOMY WHAT IS ECONOMICS Economics is the study of decision making Every time we take a decision, we are choosing between at least two possibilities How do you take

More information

Introduction to Economics. MACROECONOMICS Chapter 6 International Economics

Introduction to Economics. MACROECONOMICS Chapter 6 International Economics Introduction to Economics MACROECONOMICS Chapter 6 International Economics contents 6.1 6.2 6.3 6.4 6.5 6.6 Theory of Comparative Advantage Gains from International Trade Trade Barriers Balance of Payments

More information

Leandro Conte UniSi, Department of Economics and Statistics. Money, Macroeconomic Theory and Historical evidence. SSF_ aa

Leandro Conte UniSi, Department of Economics and Statistics. Money, Macroeconomic Theory and Historical evidence. SSF_ aa Leandro Conte UniSi, Department of Economics and Statistics Money, Macroeconomic Theory and Historical evidence SSF_ aa.2017-18 Learning Objectives ASSESS AND INTERPRET THE EMPIRICAL EVIDENCE ON THE VALIDITY

More information

PDF // CALCULATING GDP USING VALUE ADDED APPROACH

PDF // CALCULATING GDP USING VALUE ADDED APPROACH 10 February, 2018 PDF // CALCULATING GDP USING VALUE ADDED APPROACH Document Filetype: PDF 302.91 KB 0 PDF // CALCULATING GDP USING VALUE ADDED APPROACH Constant-GDP figures allow us to calculate a GDP

More information

The Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F. N. Gregory Mankiw. Introduction

The Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F. N. Gregory Mankiw. Introduction C H A P T E R 34 The Influence of Monetary and Fiscal Policy on Aggregate Demand P R I N C I P L E S O F Economics N. Gregory Mankiw Introduction This chapter focuses on the short-run effects of fiscal

More information

Elements of Economic Analysis II Lecture X: Introduction to Game Theory

Elements of Economic Analysis II Lecture X: Introduction to Game Theory Elements of Economic Analysis II Lecture X: Introduction to Game Theory Kai Hao Yang 11/14/2017 1 Introduction and Basic Definition of Game So far we have been studying environments where the economic

More information

Macroeconomics Review Course LECTURE NOTES

Macroeconomics Review Course LECTURE NOTES Macroeconomics Review Course LECTURE NOTES Lorenzo Ferrari frrlnz01@uniroma2.it August 11, 2018 Disclaimer: These notes are for exclusive use of the students of the Macroeconomics Review Course, M.Sc.

More information