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StudyGuide3 - Deskins Principles of Macroeconomics Exam 3...

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Deskins – Principles of Macroeconomics Exam 3 Study Guide From Previous Chapters Know the relevant statistics for real GDP, the CPI, and the unemployment rate for the most recent period for which statistics are available. From Chapter 16 1. Understand fully what monetary and fiscal policy are and how they can be used to manipulate aggregate demand and, in turn, economic output in the short-run. Be able to explain and diagram the effects of monetary and fiscal policy. 2. Understand how the money supply relates to interest rates and be able to depict this relationship graphically. 3. Be able to work with simple numerical examples regarding the fiscal multiplier. 4. Understand why fiscal and monetary stimuli can only achieve short-run increases in real GDP but how they can have long-run implications for the price level. 5. Understand the problems associated with the use of fiscal and monetary policy in the context of short-run fluctuations in the economy. 6.
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This note was uploaded on 12/27/2011 for the course ECON 205 taught by Professor Johndeskins, during the Fall '11 term at Creighton.

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StudyGuide3 - Deskins Principles of Macroeconomics Exam 3...

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