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GENERAL: This exam will cover the material from throughout the economics. That is, anything is fair game but the questions will be overweighted toward the material not addressed in the earlier quizzes.
Exchange and markets
Demand supply and market equilibrium
Measuring a nations production income
Unemployment and inflation
Aggregate demand and aggregate supply
Fiscal policy
The income expenditure model
Investment and financial markets
Dynamics of inflation and unemployment
Elasticity
Monopoly and price discrimination
Public goods and public choices
Labor market income and poverty
Monophony
Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Essay on Market imperfection associated with negative externalities.
Draw a correctly labeled loanable funds graph that shows what happens to real interest rates.
Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.
Use the IS/LM model and the IS-PC-MR model to explain what monetary policy to pursue.
Plot the wage- setting and price setting equation or a property labelled graph and identity the nature rate of unemployment.
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
Evaluate the range of marginal revenues
Changes in government spending and interest rates
Answer the following questions as these general questions pertain to the specific issue selected.The questions that you will cover with respect to your choice of broad social issue in the paper are given.
Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.
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