ECN 211_FinalPart21

ECN 211_FinalPart21 - Dr Happel ECN 211 Macroeconomic...

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Dr. Happel Name ________________________ ECN 211 ID _______________________ Macroeconomic Principles Fall 2006 FINAL EXAM PART II (25 points) 1. (8 points) Write out the equation of exchange and define each symbol in the equation. Next, explain what Milton Friedman had to say about each of these symbols. What does he propose about the growth rate of M 2 , what does he propose about the federal budget, and what does he propose for income taxes. Give your overall opinion of Friedman and how he has impacted your life. 2. (6 points) On the appropriate graphs above, first depict the AD/AS curves for the Keynesian view, next the curves for the Friedman/Monetarist view, then the curves for the rational expectations view, and finally the curves for the supply-side view. Keynes Friedman/ Rational Supply-side GDP Monetarist Expectations Deflator Real GDP Real GDP Real GDP Real GDP
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3. (4 points) Assets Liabilities $2M Building $3M Government Securities $3M Existing Loans $3M Vault Cash $4M Dep. at Fed
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ECN 211_FinalPart21 - Dr Happel ECN 211 Macroeconomic...

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