Questions from Managerial Economics


Q: What does the IS curve show? Why does it slope downward

What does the IS curve show? Why does it slope downward?

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Q: : Go to the St. Louis Federal Reserve FRED database,

Go to the St. Louis Federal Reserve FRED database, and find data on the personal consumption expenditure price index (PCECTPI), real GDP (GDPC1), an estimate of potential GDP (GDPPOT), and the federa...

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Q: What is the real interest rate? Why can the Fed control

What is the real interest rate? Why can the Fed control the real interest rate in the short run but not in the long run?

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Q: What can increase the equilibrium interest rate in the liquidity preference framework

What can increase the equilibrium interest rate in the liquidity preference framework?

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

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

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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?

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

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

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Q: How do changes in planned expenditures affect the aggregate demand curve?

How do changes in planned expenditures affect the aggregate demand curve?

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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?

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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?

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