Macroeconomics Review Chapters 24,25 ,26. New
- Inflation definitely reduces both purchasing power regarding a persons
income and savings.
Inflation effects are purschasing power and in order to save we have to give
up things. Inflation definitely effects
13. The figure above depicts a situation where:
A. prices are sticky, but output is flexible.
B. prices are flexible, but output is constant.
C. prices and output are both flexible.
D. prices are sticky, and output is constant.
*When you have three prices
Review sheet for Macroeconmics Chapters 1,2,3.
- A person consumes more of something when its MB > MC.
- Know what positive statements are? The temperature is 90 degrees today.
a) Know positive statements that are true known as factual such as we
are in e
. Refer to the above diagrams. Curve A:
A. is an investment schedule and curve B is a consumption of fixed capital schedule.
B. is an investment demand curve and curve B is an investment schedule.
C. and B are totally unrelated.
D. shifts to the left when