You just bought a 10-year-old house. The house is located in a expensive neighborhood. You do have to do some repairs. You have options on who does the repairs.
Read the scenario above.
In a post to the discussion, respond to the following:
Macroeconomics Chapter 9 Inflation
Inflation The continuing rise in the general level of prices of goods and services. The
purchasing power of the monetary unit such as the dollar declines when inflation is present.
Unlike unemployment where t
Chapter 1: Introduction to Economics
Economics is the study of scarcity. It details how rational individuals make choices based
on limited resources, in order to optimize the amount of personal gain they receive.
The Economics Courses:
Money Market and Open Market Operations
1. Explain the demand for money. What exactly does the demand for money mean and what
does it consist of? Give a real-world example of demand for money.
Demand for money is money outside of bank.
It consists of the
Creation of Money and Other Fed Tools
1. What is the mathematical relationship between assets, liabilities, and owners equity?
2. When discussing commercial banks, what terms are used in place of liabilities and
Aggregate Supply and AD-AS Equilibrium with History (by Alex Urp)
1. What is the curve that describes the quantity that businesses and sometimes government are
willing to produce at different price levels, all else equal?
Aggregate supply is a cure that d
Aggregate Demand and History of Keynesian Model and Inflation Exam Review
1. Explain the origin of the inflation brought into the economic system in the 1950s. With what
portion of the Aggregate Expenditures model was G(Government) competing?
1. What are the differences between fiscal policy and monetary policy?
Fiscal policy relates to government spending and revenue collection.
Monetary policy relates to the supply of money, which is controlled via factors such as interest
Consumption Line and Investment-Interest Rate Relationship
1. What is the consumption line? What are two other names for the consumption line?
Consumption line is a graphical depiction of the relation between household consumption
expenditures and househo
Exports and Imports and Importance of Aggregate Expenditures Model (Keynes)
1. When exports and imports are included in our model, how does the equation DI = GDP = C +
2. Explain how a change (either positive or negative) in e
Aggregate Expenditures Model with Government Review Questions
1. What is the equation of the aggregate expenditures model with government expenditures
2. What are the results of government intervention in the economy that inclu
Intro to Economic Relationships and Consumption Schedule Exam Review
1. Why is this chapter important?
The relationships between the different parts of the economy that contribute to the GDP,
and therefore the growth of the country, can be analyzed from s
Inflation and Costs of Unemployment and Inflation Review Questions
1. Why would loss of GDP be a result of unemployment?
The basic economic cost of unemployment is forgone output. When the economy fails to
create enough jobs for all who are able and willi
Growth, the Business Cycle, and Unemployment
1. How does one calculate the economic growth rate from year A to year B? What does the
economic growth rate tell us?
Economic growth rate = (Year B real GDP Year A real GDP)/ Year A real GDP 100
The growth rat
Measuring Domestic Output Review Questions by Alex Urp
1. In addition to purchasing goods and services, what else do households do with their National
Saving and investing.
2. What are personal consumption expenditures and what are the two major c
Measures of Economic Health
1. What are some of the ways economists measure the health of the economy?
There are three main approaches to measuring economic health. All three ways are
concerned with finding the output (GDP) of a nation.
Output Approach Th
Income Approach to Domestic Output
1. What four things are paid by business to households in exchange for labor, capital, land, and
ideas, as seen in the economic flow model? What do these four things make up?
Wages, rent, interest, profit ( broken down i
ECO201 Exam Review Chapter 3
1. What are the definitions of demand, a demand schedule, and the demand curve? What
economic law do the latter two illustrate?
Demand is defined as the quantity of a product that the consumers are willing and able to
Chapter 5 Exam Review
1. What are the definitions of exports and imports?
Exports: Goods and services produced in a nation and sold to buyers in other nation.
Imports: Spending by individuals, firms, and governments for goods and services
produced in fore
Chapters 1 and 2 Exam Review
1. What is/are the difference(s) between Macroeconomics and Microeconomics?
Microeconomics is the study of behavior of an individual, such as household, firm, and
Macroeconomics is the study of the behavior of all in