Econ 103 Past Exam Questions and Answers 100% accuratess
The interest rate that banks are charged when they borrow from Fed - ANSWER-discount rate Simultaneous increase in the money supply and reduction in government spending. - ANSWER-r will decrease Expansionary Fiscal policy - ANSWER-AE ^, Y ^, Md ^, r ^, I v, AE v Increase in the money supply will cause planned investment to ______ and consumption to _____ - ANSWER-Increase, increase Demand-Pull inflation is characterized by - ANSWER-AD curve shifting right Factors that lad to increases in aggregate supply include - ANSWER-lower wages, more labor availability, tax cuts to businesses Its important to distinguish between the short run and long run when we are discussing - ANSWER-aggregate supply Suppose the wage in the labor market is $8 and more people entered the labor force. This means that - ANSWER-If wages are sticky, the unemployment rate increases The Phillips Curve depicts the relationship between - ANSWER-Inflation and Unemployment If you hear a person saying "i lost my job at the gm plant because car manufacturing is slow due to recession" this is ____ unemployment - ANSWER-Cyclical The _____ lag is the amount of time policymakers need to become aware of the existence of a change in the economic activity - ANSWER-Recognition
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