Lras Samenvattingen, Notities en Examens

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Central...

Macro Essay Plans Exam With 100% Correct Answers 2024 Evaluate the view that free-market supply-side reforms are beneficial to the UK economy [25] - correct answer-Supply side policies are the set of micro and macro government policies used to improve national economic performance by creating more competitive & efficient markets. Decrease NMW & benefits (reduced real wage unemployment), reduced income so increased incentive to work, increased labour supply, decrease wage costs, increase S...

Demand-Pull Inflation Correct Answer-increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand Cost-Push Inflation Correct Answer-increases in the price level (inflation)resulting from an increase in resource costs (for example, raw material prices) and hence in per unit production costs; inflation caused by reductions in aggregate supply Wealth Effect Correct Answer-A change in the real va...

Production Possibilities Frontier (PPF) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. Growth of actual production: shift of AD (GDP) Growth of potential production: shift of the LRAS Economic growth. Source of economic growth (5) 1. The natural resource base 2. physical capital 3. appropriate technologies 4. Human capital 5. Institutional factors

Draw a graph of aggregated demand. Make sure to label the axis - ANSWER-Vertical axis is Price and Horizontal Axis is GDP How does the quantity of GDP demanded change as the price level in the economy increases? Illustrate this on your graph - ANSWER-It leads to a lower quantity of spending on domestic goods and services decline List and explain the components of aggregate demand - ANSWER-Consumption spending when disposable income increases, so does consumption spending and AD shifts to t...

Schema van de: - IS- en LM curve - AD- en AS-curve - LRAS

PEARSON EDEXCEL GCE AS LEVEL IN ECONOMICS A (8EC0) MARK SCHEME (RESULTS) SUMMER 2019 Pearson Edexcel GCE AS Level in Economics A (8EC0) Paper 02 The UK economy: performance and policies General marking guidance • All candidates must receive the same treatment. Examiners must mark the last candidate in exactly the same way as they mark the first. • Mark schemes should be applied positively. Candidates must be rewarded for what they have shown they can do rather than be penalise...

ECN 211 Final Exam Terms Demand-Pull Inflation Correct Answer-increases in the price level (inflation) resulting from an excess of demand over output at the existing price level, caused by an increase in aggregate demand Cost-Push Inflation Correct Answer-increases in the price level (inflation)resulting from an increase in resource costs (for example, raw material prices) and hence in per unit production costs; inflation caused by reductions in aggregate supply Wealth Effect Correct Ans...

CFA Level 1 Economics 241 Questions with Answers 2023 Price Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (%t Change in Price) Cross Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (% Change in Price of Substitute or Complement) Income Elasticity of Demand Formula - CORRECT ANSWER (% Change in Quantity Demanded) / (% Change in Income) Price Elasticity of Supply Formula - CORRECT ANSWER (% Change in Quantity Supplied)...

Define the term 'inflation'. (1) : increase in GDP (measured by the CPI based on an average basket of goods) Explain one likely cause of inflation. (2) : increasing in govt spending --> AD shifts out --> actual growth --> demand pull inflation OR natural disaster --> AS shifts inwards --> cost push inflation Illustrate the shape of the Classical long-run aggregate supply (AS) curve on the diagram below. (2) : Explain the reason for the shape of the Classical long-run ...