Questions from Managerial Economics


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?

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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?

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

Go to the St. Louis Federal Reserve FRED database and find data on the net saving rate as a percentage of national income (W207RC1A156NBEA). a) Calculate the average net saving rate over the period fr...

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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 house prices (SPCS20RSA), stock prices (SP500), a measure of the net wealth of households (TNWBSHNO), and personal consumption expe...

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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?

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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?

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Q: What are adaptive expectations? What justifies the assumption of adaptive expectations

What are adaptive expectations? What justifies the assumption of adaptive expectations in Phillips curve analysis?

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Q: According to modern Phillips curve analysis, what factors determine the rate

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

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Q: What relationship does the aggregate supply curve describe? How is this

What relationship does the aggregate supply curve describe? How is this relationship depicted with the long-run aggregate supply curve?

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Q: What is Okun’s law? How do we combine it with Phillips

What is Okun’s law? How do we combine it with Phillips curve analysis to derive the short-run aggregate supply curve?

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