Questions from Macroeconomics

Q: Consumers start to expect higher future incomes.

Consumers start to expect higher future incomes. The price level will _______________ and Real GDP will _______________.

Q: On most days more people want to see the taping of the

On most days more people want to see the taping of the The Tonight Show Starring Jimmy Fallon (in New York City) than there are seats in the taping studio. What might explain this shortage?

Q: Explain why saving rises as the interest rate rises.

Explain why saving rises as the interest rate rises.

Q: According to classical economists, does an increase in saving shift the

According to classical economists, does an increase in saving shift the AD curve to the left? Explain your answer.

Q: What does it mean to say that the economy is in a

What does it mean to say that the economy is in a recessionary gap? In an inflationary gap and In long-run equilibrium?

Q: What is the state of the labor market in; (

What is the state of the labor market in; (a) A recessionary gap, (b) An inflationary gap, (c) long-run equilibrium?

Q: Describe the relationship of the (actual) unemployment rate to the

Describe the relationship of the (actual) unemployment rate to the natural unemployment rate in each of the following economic states: (a) A recessionary gap, (b) An inflationary gap, and (c) long-...

Q: How is Keynes’s position different from the classical position with respect to

How is Keynes’s position different from the classical position with respect to wages, prices, and Say’s law?

Q: What is the relationship between the MPC and the multiplier?

What is the relationship between the MPC and the multiplier?

Q: Explain how a rise in autonomous spending can increase total spending by

Explain how a rise in autonomous spending can increase total spending by some multiple.