ECO/372– Principles of Macroeconomics – Final Exam Study Guide 2012 1. the market where business sell goods and services to households and the government is called a. goods market XXX b. factor market c. capital market d. money market 2. Real gross domestic product is best defined as a. the market value of intermediate goods and services produced in an economy including exports b. all goods and services produced in an economy‚ stated in prices in a given year and multiplied by quantity
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debt is explained by a surge of expansionary spending which caused the budget deficit to widen and it is expected to reach 9.6% at the end of the 2013/14 fiscal year. Furthermore‚ according to Bloomberg‚ a New York based financial data and media company‚ the “yields on the country’s 2022 dollar bonds have climbed to 9.93 percent this week from 6.27 percent a year ago.” Previously Barbados has had two Stand-by Agreements (1982 and 1992) with the International Monetary Fund (IMF). However‚ it seems
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United Nations Monetary and Financial Conference that was organized between 1 and 22 July 1944 at Mount Washington Hotel in Bretton woods‚ New Hampshire‚ United States. 730 delegates from 44 nations signed an agreement on the final day of the conference. This agreement went on to become one of the major agreements to govern the monetary relations of independent monetary states. But the obvious question which comes to my mind is why a need for an internationally negotiated monetary order was felt
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ANSWER (PART A) QUESTION 2 a) Labor force is defined as people from the total population between the age of 16 & 64 who are not in institutions and who are either employed or unemployed but seeking work. Those who are not in labor force are either in institutions or are voluntarily unemployed. Unemployment is made up of people who are currently not working but are looking for a job. b) Structural unemployment The portion of unemployment that is due to changes in the structure of the economy that
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22. What is the difference between real and nominal? Real = Nominal – Inflation. Real GDP adjusts Nominal GDP for changes in the price level (inflation and deflation). Real GDP = Nominal GDP / Price Index 23. What’s not included in GDP? GDP represents the total market value of all final goods and services produced in a country in one year. Items excluded from GDP include: non-production transactions‚ existing goods or property sold/transferred‚ used
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place on monetary policy? In this essay I will be discussing the way in which free capital flows can cause constraints on monetary policies. I will be looking at the balance of payments and how when it is applied to the Keynesian IS/LM model produces the Mundell - Fleming model. The Mundell - Fleming model shows the relationship between exchange rates and national income. Additionally‚ to further investigate this situation I will be looking into the ways in which monetary policies behave according
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* Export – increase * Interest rate/savings rate – increase * Political stability - increase * Currency * Depreciation * Appreciation * Devaluation * Protectionism (descriptive) * How to implement protection policies? * Why countries practice protectionism? (exam tips) * International trade (descriptive) * Benefits of trade * Disadvantages of trade * Reason of international trade (exam tips) Section B (answer only 1 question‚ 40 marks
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to go to Ali Baba? You will give an answer like “well‚ it sounded promising”‚ but in reality‚ it is that instinct that drives us to win and make us so dynamic. Why should we think of monetary and fiscal policy as dynamic game? Who are the players and what are the strategies? The reason we should think of monetary and
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currencies. As a result‚ the threat of a self-fulfilling crisis is very real — and interest rates on Spanish and Italian debt are more than twice the rate on British debt. Commentary: The European Central Bank (ECB) is engaging in a new form of monetary policy in which it buys government bonds directly from the Spanish and Italian governments. Essentially‚ the goal is to bring down the interest rates on Italian and Spanish government bonds‚ which should reassure private investors that Italy and Spain
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or indirectly financed via central bank credit Direct access to central bank implies that monetary policy is subordinated by fiscal policy -Conduct of policy This indicates flexibility given to central bank in formulation and execution of monetary policy Goal Inependence: Central bank chooses policy priorities of stabilising output or prices at given point of time‚hense setting goal of monetory policy. Instrument Independence: Central bank is only free to choose the means to achieve objective
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