Exam 18: Alternative Views in Macroeconomics

According to the Lucas supply function, how will workers react to a positive price surprise? (Assume that the substitution effect is greater than the income effect.)

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Question 81

What does real business cycle theory seek to explain?

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Question 82

According to supply-side economists, as tax rates are reduced, labor supply should increase. What does this imply concerning the substitution effect and the income effect?

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Question 83

Why is it that the quantity theory of money equation is written with a double equal sign instead of the triple equal sign?

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Question 84

What is the problem with the traditional macroeconomic treatment of expectations of inflation?

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Question 85

-Refer to the above figure. According to the monetarists, a recession can be caused by what movement in the graph above?

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Question 86

Assume that the economy is represented by the following function Y = $9 Trillion + $500 billion (P - P^e). If the current price level is 1.0 and people expect it to rise to 1.1 what will be the new level of GDP if their expectations of inflation are wrong and the actual price level rises to 1.2?

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Question 87

Name two things that Keynes was the first to recognize with respect to the macroeconomy.

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Question 88

Showing 81 - 88 of 88

According to the Lucas supply function, how will workers react to a positive price surprise? (Assume that the substitution effect is greater than the income effect.)

What does real business cycle theory seek to explain?

According to supply-side economists, as tax rates are reduced, labor supply should increase. What does this imply concerning the substitution effect and the income effect?

Why is it that the quantity theory of money equation is written with a double equal sign instead of the triple equal sign?

What is the problem with the traditional macroeconomic treatment of expectations of inflation?

-Refer to the above figure. According to the monetarists, a recession can be caused by what movement in the graph above?

Assume that the economy is represented by the following function Y = $9 Trillion + $500 billion (P - P^e). If the current price level is 1.0 and people expect it to rise to 1.1 what will be the new level of GDP if their expectations of inflation are wrong and the actual price level rises to 1.2?

Name two things that Keynes was the first to recognize with respect to the macroeconomy.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

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Exam 18: Alternative Views in Macroeconomics

According to the Lucas supply function, how will workers react to a positive price surprise? (Assume that the substitution effect is greater than the income effect.)

What does real business cycle theory seek to explain?

According to supply-side economists, as tax rates are reduced, labor supply should increase. What does this imply concerning the substitution effect and the income effect?

Why is it that the quantity theory of money equation is written with a double equal sign instead of the triple equal sign?

What is the problem with the traditional macroeconomic treatment of expectations of inflation?

-Refer to the above figure. According to the monetarists, a recession can be caused by what movement in the graph above?

Assume that the economy is represented by the following function Y = $9 Trillion + $500 billion (P - Pe). If the current price level is 1.0 and people expect it to rise to 1.1 what will be the new level of GDP if their expectations of inflation are wrong and the actual price level rises to 1.2?

Name two things that Keynes was the first to recognize with respect to the macroeconomy.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters

Assume that the economy is represented by the following function Y = $9 Trillion + $500 billion (P - P^e). If the current price level is 1.0 and people expect it to rise to 1.1 what will be the new level of GDP if their expectations of inflation are wrong and the actual price level rises to 1.2?