Ch. 8: The Business Cycle
Suppose you have $3,000 in savings when the price level index is at 100.
a) If inflation pushes the price level up by 10%, what will be the real value of
b) What happens to the real value of your savings if the p
Ch.9: Aggregate Demand
The table below shows disposable income and consumption for an economy.
$100 billion $90 billion
$200 billion $150 billion
a) what is this economys mpc?
b) what is this economys mps?
On the accomp
Illustrate these events with AS or AD shifts:
Government increases defense spending.
The Headline story on p. 246.
Imported raw materials get cheaper.
Congress cuts corporate income tax.
Chapter 28-Monetary system
1- Show how money is created in the banking system, assuming Ahmed received $100
from the Central Bank.
Assume Ahmed deposits the $100 in Nations Bank. Assume a reserve requirement of
Nations Bank loans as much money as i
During 1950-2000, the US manufacturing sector has
faced a decreasing employment as a percentage of total
employment from 28% to 13%. However, during the
same period, manufacturing output achieved slightly
more rapid growth than the overall economy.