Describe the uncontroversial final effect of a policy

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Reference no: EM1335011

Recession and expansion

QUESTIONS:

1) Explain what a recession is.
2) Explain what an expansion is.
3) Explain what Disposable Income is.
4) Explain what an endogenous variable is.
5) Explain what an exogenous variable is.
6) Explain what an "autonomous" component is
7) Explain why I= S is an equilibrium in the goods market.
8) Explain the paradox of the Thrift.
9) An increase in Investment will increase the multiplier. TRUE OR FALSE?
10) Consider the IS/LM model. After a monetary expansion, list three variables that have changed.
11) Discuss the uncontroversial final effect of a contractionary monetary policy and an expansionary fiscal policy.
12) If IS were vertical and G increased, the crowding out were zero. TRUE OF FALSE? Explain your answer.

Reference no: EM1335011

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