| | |2.2 Aggregate Demand and Aggregate Supply | | | |2.3 Fiscal Policy | | | |2.4 Monetary Policy | | | |2.5 The Impact of Unemployment
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⇓ for decrease). What would happen to the money supply and interest rates if the Fed… a. purchased government securities on the open market? Money Supply ⇑ ⇓ Interest Rates ⇑ ⇓ b. raised the discount rate? Money Supply ⇑ ⇓ Interest Rates ⇑ ⇓ c. lowered the reserve requirement? Money Supply ⇑ ⇓ Interest Rates ⇑ ⇓ 3. With an easy money policy (expansionary monetary policy), the equilibrium supply of money(increase/decrease) while interest rates ________________
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payments d. No, this is an intermediate good e. Yes, this is a final good, used for consumption f. Yes, these are U.S. exports 3. (National Income Accounting) Explain why intermediate goods and services usually are not included directly in GDP. Are there any circumstances under which they would be included directly? • Intermediate goods and services are further
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receipts. Tax increases are not politically palatable. Governments often resort to deficit financing when other components of GDP such as private consumption decline during recessionary periods. Such deficits, if undertaken for a short period with an action plan to create equivalent surplus in near future, could reverse decline in real GDP and stimulate growth in real GDP for the benefit of citizens of the nation. Structural deficits are indicative of inability to reduce entrenched government expenses
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SECTION A: MULTIPLE CHOICE QUESTIONS (35%) Answer ALL questions in this section. Choose the one alternative that best completes the statement or answers the question. Please answer questions by shading the appropriate box on the MCQ form (Multiple Choice answer sheet). 1) hich of the following is not a consequence of hyperinflation? W A) he price level grows in excess of hundreds of percentage points T per year. B) oneyʹs function as a medium of exchange is enhanced. M C) t causes an economy to suffer slow growth
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Submitted by: Minhajul Abedin ID: 2013-1-95-019 Section: 01 Date of submission: 24 august, 2013 Monetary Policy of Bangladesh Decisions regarding the monetary policy are very important for any country in today’s world. To control the supply of money by targeting a rate of interest, and to promote the economic growth and stability, a good control over the monetary policy is a must for every country. Bangladesh is a developing country and its monetary policies are generated by the central bank
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2 Group 7 1. The Philippines is No. 83 on HDI ranking last 2003, No.112 last 2011 and No. 114 as reported by UNDP for 2013. Account on the reasons for such changes. Compare the following factors; a. life expectancy b. literacy c. average GDP Despite gains it has made on the economic front, the Philippines remained at 114th globally for the 5th straight year in the Human Development Index (HDI) released by the United Nations Development Program (UNDP) on Friday, March 15. The HDI is
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reaching this objective. Expansionary monetary policy is used when a country is facing a recession in the economy business cycle, whereby it increases the money supply in economy system to meet its objectives. In contrast, where there is a peak in the economy business cycle, central bank will use contractionary monetary policy to reduce the money supply in economy system so as to retard the inflation. For example, the United States, one of the top ten richest countries in the world (IMF, 2011, pp.1),
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husband rather than as a wage earner). She earns $1,000,000 per year both before and after her marriage. The marriage: A. does not change GDP. B. decreases GDP by $60,000. C. increases GDP by $60,000. D. increases GDP by more than $60,000. 2. (4 points) All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a: A. book printed in 2009, entitled The Year 3000. B. 2001 Jeep Cherokee. C. year 2010 calendar
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Republican & Democratic Government in US Submitted to: Prof. Ganesh Manjhi Submitted By: Simran Jain, Manika Agarwal, Namisha Mehra & Nitima Mehra Abstract: This study has been put forward to compare the effects of Fiscal and monetary policy on GDP under Republican & Democratic Government in US. Estimated the data yearly from 1981-1989 (Ronald Reagan Republican Government) & from 1993-2001 (bill Clinton Democratic Government). Although considerable variations exist in the results, overall the
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