contents Introduction in Macro-economy………………………………………..3. Unemployment………………………………………………………….5. Labor, Land ,Capital…………………………………………………6,7,8. Currency&Inflation……………………………………………………. .9. Hyperinflation…………………………………………………………..10. Demand and Supply…………………………………………………….11. Conclusion………………………………………………………………12 Introduction of Macro-economy It is perhaps mostly for this reason that macroeconomics, the study of these economy-wide phenomena, is so exciting. Macroeconomics is more than just
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Problem Set 5 Liberty University Feb 17 28, 2013 ECON 214 D14 Principles of Macroeconomics 1. What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy affect these factors in the long run? Explain. When income rises, more people are placed in the region above the no tax due cutoff. Others find themselves pushed into a higher tax brackets. Therefore, the process
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uses gold as its currency. Define each of the three properties of money listed below. Considering these properties, is gold a good monetary system? a. Medium of exchange: any item that buyers give to sellers when they purchase goods and services. b. Unit of account: a standard unit in which prices can be stated and the value of goods and services can be compared. c. Store of value: the property of money that holds that money preserves value until it is used in an exchange. d. Is gold
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Exam Study Chapter 3-What is Money * Medium of Exchange: * Eliminates the trouble of finding a double coincidence of needs (reduces transaction costs) * Promotes specialization * A medium of exchange must * be easily standardized * be widely accepted * be divisible * be easy to carry * not deteriorate quickly * Unit of Account: * used to measure value in the economy * reduces transaction costs * Store of Value:
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Hello Professor and Class, Banks create money by accepting deposits and making loans, this make the money supply larger than just the value of currency in circulation. (Krugman & Wells Pg. 392) For example if I had $800 cash at home and decided to put it in the bank (I now have a checkable deposit), the bank turns around and loan someone $500 out of the money I deposited and a percentage is put in reserves. That person now has $500 cash in which they spend $400 at a Kay’s Jeweler. Kay’s Jeweler
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Supply and Demand University of Phoenix XECO/212 When prospective homebuyers are looking to buy a new home in their area, they should consider the health their local real estate market is in. A prospective homebuyer needs to have an understanding of the many different economic trends a real estate market can have, There are many different business cycles and real estate trends that will have an affect on why a homebuyer would purchase a home and there are different monetary advantages
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first source of money supply in the form of currency in circulation. The Reserve Bank of Indian is the note issuing authority of the country. The RBI ensures availability of currency to meet the transaction needs of the economy. The Total Volume of money in the economy should be adequate to facilitate the various types of economic activities such as production, distribution and consumption. The commercial banks are the second most important sources of money supply. The money that commercial banks
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Hello Professor and Class, Banks create money by accepting deposits and making loans, this make the money supply larger than just the value of currency in circulation. (Krugman & Wells Pg. 392) For example if I had $800 cash at home and decided to put it in the bank (I now have a checkable deposit), the bank turns around and loan someone $500 out of the money I deposited and a percentage is put in reserves. That person now has $500 cash in which they spend $400 at a Kay’s Jeweler. Kay’s Jeweler
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relative to the dollar. The fixed exchange rates were maintained by official intervention in the foreign exchange markets. This intervention was about purchases and sales of dollars by foreign central banks against their own currencies whenever the supply and demand conditions in the market deviate from the agreed on par values. Any dollars acquired by the monetary authorities in the process of an intervention could then be exchanged for gold at the U.S Treasury. In principle, the stability of exchange
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Jean Baptiste Say Economic Doctrines Agenda 1. Introduction 2.1. J.B.Say in the french Classical Liberalism school of thought 2.2. Mainstream of the Classical Liberalism school of economics 2.3. Specifics of J.B.Say 2.4. Differences regarding the opposition of Classical Liberalism 2. Description of J.B.Say 3. New approach brought by J.B.Say 4. Opinion 5. Summary 1. Introduction 1.1. J.B.Say
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