Questions from Macroeconomics

Q: Suppose the statistical office of a country does a poor job of

Suppose the statistical office of a country does a poor job of measuring inflation and reports an annualized inflation rate of 4% for a few months, while the true increase in the price level has been...

Q: What is the monetary policy curve? Why does it slope upward

What is the monetary policy curve? Why does it slope upward?

Q: How does an autonomous tightening or easing of monetary policy by the

How does an autonomous tightening or easing of monetary policy by the Fed affect the MP curve?

Q: What is the aggregate demand curve? Why does it slope downward

What is the aggregate demand curve? Why does it slope downward?

Q: How does an autonomous tightening or easing of monetary policy by the

How does an autonomous tightening or easing of monetary policy by the Fed affect the aggregate demand curve?

Q: In Keynes’s liquidity preference theory, what variables determine the demand for

In Keynes’s liquidity preference theory, what variables determine the demand for real money balances? How does the demand for real money balances respond to changes in each of these variables?

Q: What are open market operations? How does the Fed use these

What are open market operations? How does the Fed use these operations to increase or decrease the money supply?

Q: What condition is required for equilibrium in the money market? Why

What condition is required for equilibrium in the money market? Why does the money market move toward equilibrium?

Q: What basic relationship does the long-run Phillips curve describe?

What basic relationship does the long-run Phillips curve describe? How does this relationship differ from that described by the short-run Phillips curve?

Q: According to the expectations-augmented Phillips curve, what factors determine

According to the expectations-augmented Phillips curve, what factors determine the rate of inflation? How do changes in each factor affect the short-run Phillips curve?