Social security cost push inflation ad demand pull

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Unformatted text preview: security cost push inflation - AD demand pull inflation - AS Regan same price level, produce more 1.cut tax(4) - shift AS 2.autonomous spending - AD problem - debt money divisible, protable, durable, stable(difficult to copy) commodity money - have own intrinsic value fiat money - dont m1 - currency, checking account, traveler check m2 - m1. saving account, money market account, certificate of deposit ms(monsy supply)=mb(money base)*(1/RRR required reserve ratio) federal open market committee 7 board of gov, NY fed president, 4 rotating fed president meet every 6 weeks, set monetary policy, use moey to affect economy propose of fed reserve bank 1.crate uniform currency 2.a lender of last resort of the bank 4.print money 5.supervice 6.monetary policy P(bond) r expensionary montary policy s, ms, r contractonary monetary police recession - fed buy bond - MB - MS - r - I - AE - AD inflation...
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This note was uploaded on 02/12/2014 for the course ECON 102 taught by Professor Muze during the Fall '11 term at University of San Francisco.

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