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Computing the simple multiplier, GDP, Disposable income and Consumption.
Compute the rate of inflation using money supply and the real GDP.
Differentiate among nominal GDP and real GDP, nominal ineterst rate and real interest rate. Explain how would not knowing the difference effect perceptions of the economy and effect people's decisions
Explain how does the equilibrium among aggregate income and aggregate expenditures occur explained in terms of changes in inventories.
Computing the unemployment rate from the labor force. Illustrate why is the level of Investment unstable.
Explain how do changes in labor also capital effect economic growth i.e. the role of technology in economic growth.
Explain how are employment and unemployment defined and how do these definitions effect the reported percentage unemployment rate.
elucidate the effect of the following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output.
Give an impact on short-run Phillips Curve for the following changes.
Elucidate development of new solar technologies cause energy prices to plummet. Crop-restriction payments to farmers are eliminated.
Describing the changes in the aggregate demand curve, equilibrium output, and the price level for the given changes.
Illustrate two reasons why the country's aggregate demand (AD) curve is a downward-sloping function of the nation's price level.
Explain why the Fed employ then does not variable as its intermediate target. Impact of long term interest rates on capital expenditures.
Describe of intermediate target variable of monetary policy. Explain the three criteria that are used to determine whether a particular variable is a worthy candidate.
Elucidate the meaning of an intermediate monetary policy target variable.
Describe the main goals of monetary policy. Explain why each is worthy of being considered an important goal.
Illustrate the impact of an increase in reserve requirements on interest rates and money supply.
Elucidate why the reserve requirement changes enacted in the Monetary Control Act of 1980 enhanced the ability of the Federal Reserve to accurately control the money supply.
Illustrate what problems does this "tax" create. Explain. How could this "tax" be eliminated.
Illustrate what are the advantages of open market operations relative to the other instruments of monetary policy.
Illustrate the reason for money supply expansion during expansion phase of the business cycle.
Elucidate the statement of Fed eliminating all reserve requirements on money multiplier.
Elucidate the factors influencing excess reserve ratio. What would happen to the magnitude of re if.
Explaining money multiplier and its impact on money supply.
Illustrate what was your dollar gain or loss from holding the option contract.