macro econ exam 3
if the exchange rate between the US dollar and the yen is 130 per dollar, how much would a pizza that cost $12 cost in yen
$1/12 = 130/x = 10.83
disposable iincome. consumption 100. 180 200 260 300 340 400 420 500 500 what is the marginal propensity to consume
.8
if there are no taxes or Imports and the MPC equals point nine what is the value of the multiplier
10
price level. real gdp. real gdp s long 100. 800. 400. 500 110. 700. 500. 500 120. 600. 600. 500 130. 500. 700. 500 what is the magnitude of the gap
100
price level. real gdp. real gdp s long 140. 2000. 1800. 2100 150. 1900. 1900. 2100 160. 1800. 2000. 2100 170. 1700. 2100. 2100 what is the short run equilibrium
150- price lvl 1900- real gdp
price level. real gdp. real gdp s long 140. 2000. 1800. 2100 150. 1900. 1900. 2100 160. 1800. 2000. 2100 170. 1700. 2100. 2100 what is the magnitude of the gap
200
disposable iincome. consumption 100. 180 200 260 300 340 400 420 500 500 at what level of disposable income does saving equals 0
500
price level. real gdp. real gdp s long 100. 800. 400. 500 110. 700. 500. 500 120. 600. 600. 500 130. 500. 700. 500 what is the short run equilibrium
600- real GDP 120- price lvl
if money wage rate increases what happens to the SAS curve and the L A S curve
SAS curve goes left L A S curve doesn't change
we expect the dollar to depreciate
Supply increases demand decreases the dollar depreciates
increase demand for imports
Supply increases dollar depreciates
what happens to aggregate demand when a) exchange rate increase b) transfer payments decrease c) increase in govt expenditures d)increase in taxes e) import increase
a)decrease b)decrease c)increase d) decrease e) decrease
if the demand for the dollar increases will the dollar appreciate or depreciate
appreciate
demand pull inflation
caused by an increase in aggregate demand
net borrower
country that is borrowing more than it is Lending
net lender
country that is lending more to other countries than it is borrowing
if a country is importing more than it is exporting will there be a positive or negative balance and current account and capital account
current - neg capital- pos
foreign interest rate increase
demand decreases Supply increases the dollar deppreciates
increase demand for US exports
demand increases the dollar appreciates
if the supply of dollars increases will the dollar appreciate or depreciate
depreciate
what is taxation
disposable income decreases if we raise taxes consumption decreases and aggregate demand decreases
if the Dollar's value changes from 120 yen per dollar to 110 Yen per dollar has the dollar appreciated or depreciated has the Yen appreciated or depreciated
dollar- d yen- a
monetary policy
fed buys government security you have hurt yourself
if real gdp= potential gdp this is
full employment
fiscal policy
government use of Taxation and spending to impact the economy
if real GDP is greater than potential GDP what kind of Gap is
inflationary Gap
if there is an increase in the quantity of human capital what happens to the Las curve and the SAS curve
l - shifts right s - shifts right
if the exchange rate Falls foreign Goods become (________) expensive and US Imports (________)
more, decrease
price level. real gdp. real gdp s long 100. 800. 400. 500 110. 700. 500. 500 120. 600. 600. 500 130. 500. 700. 500 is this long run equilibrium if not what type of output Gap exist
no inflationary Gap
price level. real gdp. real gdp s long 140. 2000. 1800. 2100 150. 1900. 1900. 2100 160. 1800. 2000. 2100 170. 1700. 2100. 2100 is this long run equilibrium if not what type of output Gap exist
no recessionary Gap
foreign exchange rate
price at which one currency traits for another
if I could get demand increases what happens to price level and real GDP
price level increases and real GDP increases
short run aggregate supply increases what happens to price level and real GDP
price level increases real GDP decreases
if real GDP is greater than potential GDP what kind of Gap
recessionary gap
autonomous consumption
when disposable income is zero the level of consumption