Podcast
Questions and Answers
What is the condition for labour market equilibrium?
What is the condition for labour market equilibrium?
- P = F(N, P)
- Nd = Ns (correct)
- S = I
- Y = F(K, N)
What is the effect of a bond-financed increase in government spending on the equilibrium values of output and the price level?
What is the effect of a bond-financed increase in government spending on the equilibrium values of output and the price level?
- It has no effect on output and the price level (correct)
- It increases output but decreases the price level
- It increases output and the price level
- It decreases output and the price level
What is the relationship between the interest rate and the supply of loanable funds at equilibrium?
What is the relationship between the interest rate and the supply of loanable funds at equilibrium?
- The interest rate equals the supply of loanable funds (correct)
- The interest rate is higher than the supply of loanable funds
- The interest rate is lower than the supply of loanable funds
- The interest rate has no relation to the supply of loanable funds
What is the effect of a bond-financed increase in government spending on the interest rate?
What is the effect of a bond-financed increase in government spending on the interest rate?
What is the Fisher's equation of exchange?
What is the Fisher's equation of exchange?
What is the condition for capital market equilibrium?
What is the condition for capital market equilibrium?
What happens to the equilibrium interest rate when government deficit spending is added?
What happens to the equilibrium interest rate when government deficit spending is added?
What is the effect on aggregate demand when government spending is financed by selling bonds to the public?
What is the effect on aggregate demand when government spending is financed by selling bonds to the public?
What happens to the supply curve when the money supply increases?
What happens to the supply curve when the money supply increases?
What is the effect on the price level when government spending is financed by increasing the money supply?
What is the effect on the price level when government spending is financed by increasing the money supply?
What is the effect of tax policy on the economy?
What is the effect of tax policy on the economy?
What happens to private expenditure when government spending is financed by selling bonds to the public?
What happens to private expenditure when government spending is financed by selling bonds to the public?
What is the primary effect of reducing marginal income tax rates?
What is the primary effect of reducing marginal income tax rates?
What happens to the labor supply schedule when the marginal income tax rate falls?
What happens to the labor supply schedule when the marginal income tax rate falls?
What is the result of an increase in labor supply?
What is the result of an increase in labor supply?
What determines the price level and nominal income in the classical system?
What determines the price level and nominal income in the classical system?
What is the effect of monetary policy on real variables in the classical system?
What is the effect of monetary policy on real variables in the classical system?
What is the result of a shift to the right in the aggregate supply curve?
What is the result of a shift to the right in the aggregate supply curve?
Flashcards are hidden until you start studying
