PRE-TEST – ANSWER KEY Econ 361, 1st Hourly Prof. Khan Mohabbat 1. The broadest measure of the aggregate price level is the a) GDP deflator.* b) consumer price index. c) producer price index. d) d. gross domestic product. 2. If the value of a price index was 125 for 2005 and 75 for 1982, and GDP was 2500 in 2005 compared to 600 in 1982, the value of real 2005 GDP in terms of 1982 prices is a) 1500.* b) 1000. c) 2500. d) 360. 3. The index that measures the change in price of a typical basket of
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Review Questions According to R. Glenn Hubbard and Anthony Patrick O’Brien, the aggregate expenditure model focuses on the relationship between total spending and real GDP in the short run, assuming that the price level is constant. The key idea of the aggregate expenditure model is that in any particular year, the level of GDP is determined mainly by the level of aggregate expenditure. Aggregate expenditures are the total expenditures on gross domestic product. These expenditures are used by
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Aggregate Demand and Supply Model April Martino, John Button, Alhagie Suwareh, Venetta Sanders, Antoinette Lowery ECO 372 October 21, 2014 Alan Benson Aggregate Demand and Supply Model Unemployment When unemployment is discussed the most common perception is that it is of a person without a job. The unemployed includes those individuals that are able to work but not willing to work. Unemployment also includes individuals that are waiting for a job they may have applied for but have not received
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Chapter 10 Classical Business Cycle Analysis: Market-Clearing Macroeconomics Goals of Chapter 10 A) Use the IS-LM model with rapidly adjusting wages and prices to present the classical model B) Examine the relationship between money and the business cycle I. Business Cycles in the Classical Model (Sec. 10.1) A) The real business cycle theory 1. Two key questions about business cycles a. What are the underlying economic causes? b. What should government policymakers do about them
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University of Phoenix Material Macroeconomic Terms Define the following terms in your words. |Term |Definition |Definition Source | |Gross Domestic |Gross Domestic Product |http://www.investopedia.com/terms/g/gdp.asp | |Product (GDP) |(GDP) is a way to measure|
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Weekly Reflection Economic Forecasting ECO/372 May 20, 2013 Jamey Burnett Economic Forecasting Economic Forecasting is a process, which is used for making predictions about the economy. Economic forecasting is used to predict Gross Domestic Product, inflation, and unemployment ("Us Department Of Commerce Bureau Of Economic Analysis", n,d.). Here is a list of resources that can be used to gather historical economic date as well as forecast data; Bureau of Economic Analysis, Bureau
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organizational culture appropriability construct DefinitionSave to FavoritesSee Examples The values and behaviors that contribute to the unique social and psychological environment of an organization. Organizational culture includes an organization's expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written
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advancing their political agendas c. developing models when the scientific method cannot be used d. focusing their thinking Objective: Compare and contrast economic systems. 2. In a market economy, a. supply determines demand and, in turn, demand determines prices b. demand determines supply and, in turn, supply determines prices c. the allocation of scarce resources determines prices and, in turn, prices determine supply and demand d. supply and demand determine prices and, in turn, prices allocate
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Textbook Questions and Problems CHAPTER 1 The Science of Macroeconomics Questions for Review 1. Microeconomics is the study of how individual firms and households make decisions, and how they interact with one another. Microeconomic models of firms and households are based on principles of optimization—firms and households do the best they can given the constraints they face. For example, households choose which goods to purchase in order to maximize their utility, whereas firms decide
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In has been almost three years since the global financial crisis that started in the United States which was due to housing subprime lending, meaning that loans were being made to people who had difficulty maintaining the repayments on schedule. According to Bernanke (2009:01), “the proximate cause of the crisis was the turn of the housing cycle in the Untied States and the associated rise in the delinquencies on the subprime mortgages, which imposed substantial losses on many financial institutions
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