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Why does the short-run aggregate supply curve slope upward? What causes the long-run aggregate supply curve to shift?
What relationship does the aggregate supply curve describe? How is this relationship depicted with the long-run aggregate supply curve?
According to expectations-augmented Phillips curve, what factors determine the rate of inflation? How do changes in each factor affect short-run Phillips curve?
What basic relationship does the short-run Phillips curve describe? What trade-offs does this relationship seem to offer policy makers?
Explain the relationship between inflation and unemployment during 2007 using the modern Phillips curve concept.
Draw new short-run aggregate supply curve in graph if there is price shock such that. Calculate inflation when output is $8, $10, and $12 trillion respectively.
Considering that the U.S. labor market is more flexible than European labor markets, would you expect the same increase in unemployment in the three countries?
Show graphically how use of Internet by job searchers and employers affects long run aggregate supply.
Describe the effect on the interest rate if the Federal Reserve decides to increase the money supply at the same time that aggregate output increases.
What is the implication of a one-to-one change between nominal interest rates and inflation for the slope of the monetary policy curve?
Describe the two primary objectives of macroeconomic stabilization policy. Should policy makers strive to achieve zero rates of unemployment and inflation? Why?
What is the equilibrium real interest rate? How does it influence the interest rate decisions of Federal Reserve policy makers?
Describe the five time lags involved in implementing stabilization policy. How does the Taylor rule relate to the monetary policy curve?
Explain the processes of cost-push and demand-pull inflation. How do macroeconomists distinguish between the two?
Do you think that this constitutes hierarchical or dual mandate for conduct of monetary policy? Is this mandate consistent with positive inflation rate target?
Which was the main concern for Japanese policy makers by April 2010? Why is deflation inconsistent with price stability?
What would be the effect on the real interest rate, inflation rate, and output level if the Federal Reserve decides to stabilize the inflation rate?
Based on the aggregate demand and supply analysis, do you think that a more or less efficient economy is an important issue in this debate?
Assuming these gains are relatively small for the average individual, how do you think this conclusion would affect the activist/ nonactivist debate?
Why was the Fed's decision to keep its target unchanged consistent with the Taylor rule? Why, or why not?
What are business cycles? What are the four parts of a business cycle? Distinguish between procyclical and countercyclical economic variables.
What were the Great Inflation and the Great Moderation? How do macroeconomists distinguish between flexible and sticky prices and wages?
How do Keynesian views on macroeconomic fluctuations differ from those of classical macroeconomists? How quickly the economy adjusts to long-run equilibrium?
Identify the peak and trough during this period. Comment on the timing of the inflation rate and the stock prices index.
To investigate the determinants of Singapore's real effective exchange rate (REER).