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final exam Intermediate Macroeconomics questions and answers in the context of the AD-SRAS-LRAS model, in the 1970 out price shocks would cause the _____ function to move to the ______ - ANSWER-SRAS up In the Solow growth model with population growth and technological change, if n the steady s...

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  • November 11, 2024
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final exam Intermediate Macroeconomics

questions and answers


in the context of the AD-SRAS-LRAS model, in the 1970 out price shocks would cause the _____ function

to move to the ______ - ANSWER✔✔-SRAS


up


In the Solow growth model with population growth and technological change, if n the steady state the

marginal product of capital stock is 0.10 the depreciation rate equals 0.05, the rate of technological

progress is 0.02 - ANSWER✔✔-MPK=n+g+delta


0.1=0.03+0.05+0.02




equal to


economic growth theorists believe that a key reason for the differences in income per capita between

north and South Korea is differences in _____ between the 2 countries - ANSWER✔✔-institutions


a key way that quantitative easing differs from standard expansionary monetary policy Is that -

ANSWER✔✔-lowers long-term interest rates


if the MPC is 0.65 and taxes are increased by 3 million, output will - ANSWER✔✔-falls by 5.57 million


Paul Volcker was the _____ responsible for increasing _____ during _____ - ANSWER✔✔-federal reserve

chairperson


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interest rates


1980s


The spending hypothesis suggests that the Great Depression was caused by a: - ANSWER✔✔-leftward

shift in the IS curve


a liquidity trap occurs when - ANSWER✔✔-interest rates fall so low that monetary policy is no longer

effective.


according to the Keynesian-cross analysis if the MPC. is 0.6 and government expenditures and

autonomous taxes are both increased by 100, equilibrium will rise by - ANSWER✔✔-∆y=∆G/(1-mpc)




∆y=y=-mpc ∆t/(1-mpc)




∆G=∆t=$100; Mac =0.6




∆y=100/0.4


=$250




∆y=-0.6 (100)/0.4


=-150




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