Barrons Final Test 1. In the long run an increase in the money supply results in E a proportional increase in price level because the classical notion of monetary neutrality is based on the idea that the money supply and the price level is proportionally related. 2. You buy 100 shares in XYZ Corporation on the internet and your broker charges you $29.95 C this increase the GDP by $29.95 because financial transactions are not counted in GDP but the commission is
Premium Inflation Monetary policy
mid term Last Name: ______________________________________________________________________ First Name: ______________________________________________________________________ Student Number: __________________________________________________________________ UNIVERSITY OF SYDNEY ECON1002 INTRODUCTORY MACROECONOMICS Mid-semester Exam Semester One‚ 2012 Instructions: ________________________________________________________________________________ Time allowed: 60 minutes (plus 5 minutes reading
Premium Inflation Unemployment
consumption equation is represented by the following: C = 250 + .75YD. Given this information‚ the marginal propensity to save is A) .25. B) .7. C) 1. D) 4. E) none of the above 3. Which of the following events will cause a reduction in equilibrium output? A) an increase in the marginal propensity to save B) an increase in taxes C) a reduction in the marginal propensity to consume D) all of the above E) none of the above 4. If C = 2000 + .9YD‚ what increase in government
Premium Supply and demand Monetary policy Money
employment in the country are caused by fluctuations in aggregate demand. The ups and downs in aggregate demand are caused by changes in the volume of investment. The volume of investment is directly related to the marginal efficiency of capital. The investment increases in response to higher marginal efficiency of capital and decreases with the fall in the profit expectations of the entrepreneurs. The Keynesians further put forward the theory of multiplier which shows how the increase or decrease in investment
Premium Macroeconomics Keynesian economics Business cycle
Individual wants - the desires of each person Collective wants - wants of the whole community The four economic problem: What to produce How much to produce How to produce How to distribute production Whenever we choose to produce or consume a product‚ we miss out on an alternative product that could have been produced using those resources. This is known as the opportunity cost. 1.2 - The Production Possibility Frontier The Production Possibility Frontier is a graphical representation
Premium Economics Market economy Supply and demand
Income equality is the equal distribution of income amongst the different classes and households‚ and is a main government objective‚ the fifth one‚ as well as full Unemployment‚ price stability‚ equilibrium of balance of payments‚ and Economic growth. As there is always some amount of income inequality‚ this determines the classes in society‚ with the aim to reduce this benefiting the lower class‚ the poor‚ s opposed to the upper class‚ the wealthy. Redistribution of income‚ the method by which
Premium Macroeconomics Economics Economic inequality
SCHOOL OF HOSPITALITY‚ TOURISM AND CULINARY ARTS BACHELOR OF INTERNATIONAL HOSPITALITY MANAGEMENT HTM 3213 TOURISM ECONOMICS IMPACT ANALYSIS Name and Student ID: YEONG WOOI CHYNG 0311922 AMELIA NGADI 0311827 SALLY MARCELY 0301457 SINTA SETIAWAN 0312100 VALENTINE SRI WAHYUNI MASLIM 0304052 Batch and Group: BH 4 Group 7 Lecturer: MS. UMA THEVI MUNIKRISHNAN Submission Date: 17th OCTOBER 2013 Contents Introduction Students are required to
Premium Tourism Economics Gross domestic product
CONSUMPTION PATTERN IN TAMILNADU A.KASIRAJAN(Asst.Prof) WITH REFERANCE TO PERMANENT INCOME Department of Economics HYPOTHESIS R.K.M.VivekanandaCollege‚ Mylapore‚Chennai600004. _______________________________________________________________________________ Introduction The central idea of the permanent income hypothesis‚ proposed by Milton Friedman in 1957‚ is that people base consumption on what they consider their “normal income”
Premium Macroeconomics Economics Milton Friedman
of equations as consistent‚ inconsistent or dependent a) -5x - y = -5 y = -5x b) 6x + 2y = 12 y = -3x + 6 c) y = 3/4x + 5 -6x - 8y = 24 3. Y=C+I C=1000+0.8Y I=250 a) Find b) Determine the multiplier‚ k and interpret the result c) Assume marginal propensity to consume (mpc)‚ b changes to 0.75. Calculate new explain the change. and 1 ECO 134 Instructor: Parisa Shakur ASSIGNMENT 3 = =65‚ + = + Marks:10 4. Y=C+I where = 70‚ b=0.6 and a=0.2 a) Find the reduced form of the following
Premium Supply and demand Mathematics English-language films
(E)? £490bn + £80bn = £570bn (f) Given your answer to (e)‚ and assuming that total household incomes are currently £550bn‚ what will happen to household income? Rise (g) What is the formula for the marginal propensity to withdraw? (W/(Y (h) What are the answers to the following? (Use a number or another term as appropriate.) (i) Y – W = Cd (ii) mpcd + mpw = 1 (iii) 1–mpcd = mpw 2. (a) Assuming that injections are constant at all
Premium Economics Household income in the United States Macroeconomics