1] What is meant by adding "autonomous" net exports?
2] What affect would positive net exports have on Y*? negative? Net Exports equal to zero? How would the aggregate expenditures function be affected in each case? Present each case graphically.
3] What is the value of the vertical intercept of the aggregate expenditures function when we add net exports? What is the total (equation wise) of autonomous spending with net exports added?
4] In the Keynesian model that includes government, what is meant by "autonomous" government purchases?
5] Add government purchases to the algebraic and graphical methods of determining Y*. Calculate Y* using the expenditures approach.
6] What is the value of the vertical intercept of the aggregate expenditures function when we add government purchases? What is the total of autonomous spending?
7] How can the aggregate demand curve be derived from Keynes' aggregate expenditures model?
8] Discuss the Employment Act of 1946. How did that act change the role of the Federal Government in the economy?
9] Describe the Federal Reserve system. What legislation created the Fed? When did this occur?
10] How are members of the Federal Reserve Board of Governors chosen? How long are their terms in office?
11] Are members of the Board typically sensitive to political and public pressure?
12] Describe the relationship between the Fed, and the President, Congress, and voters.
13] Why does a change in the discount rate for Expansionary or Contractionary policy have an unclear impact on the money supply?
14] What is meant by the "announcement effect" of a change in the discount rate?
15] How often does the Fed typically change the discount rate and the fed funds rate?
16] How often does the Fed typically use open market operations?
17] Which is the most commonly used instrument of monetary policy?