Business, 20.08.2021 01:20 hjukhvfd5723

Macroeconomics can be a difficult topic to define. For the most part, it can be defined by the specific topics with which it is concerned. Among these are output, inflation, unemployment, interest rates, and international trade. At first these topics may seem unrelated, but some thought shows that they are intimately related. A. The AD/AS model describes changes in the economy by relating real GDP (output) and the price level.
I. Compare and contrast the Keynesian portion of the AD/AS model with the classical portion of the AD/AS model, and explain how the level of production is determined in each situation.
II. Compare and contrast changes in aggregate demand and changes in aggregate supply in the AD/AS model.
B. The Phillips curve relates inflation and unemployment.
I. Using the AD/AS model, discuss the changes to the economy that the Phillips curve explains well, and describe under what conditions the Phillips curve fails to explain economic behavior.
II. In the late 1990s, the U. S. economy experienced a period of extremely low inflation and extremely low unemployment. Use the AD/AS model to explain what sort of change in the economy would cause this.
C. Explain the relationship between interest rates and unemployment. How do changes in the interest rate affect the level of unemployment in the economy?
D. Consider the relationship between interest rates and inflation.
I. Explain the difference between real and nominal interest rates.
II. If the Fed takes actions that will change interest rates, how is this likely to affect inflation?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:30

Maker-bot corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. no dividends were declared in the first two years. if the company pays $400,000 of dividends in the third year, how much will common stockholders receive?

Answers: 2

Answer

Business, 22.06.2019 12:30

Acorporation a. can use different depreciation methods for tax and financial reporting purposes b. must use the straight - line depreciation method for tax purposes and double declining depreciation method financial reporting purposes c. must use different depreciation method for tax purposes, but strictly mandated depreciation methods for financial reporting purposes d. can use straight- line depreciation method for tax purposes and macrs depreciation method financial reporting purposes

Answers: 2

Answer

Business, 22.06.2019 16:10

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?

Answers: 1

Answer

Business, 22.06.2019 19:30

Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above

Answers: 2

Answer

You know the right answer?

Macroeconomics can be a difficult topic to define. For the most part, it can be defined by the speci...

Questions