Economics Micro & Macro (CliffsAP)
Part II: Macroeconomics You should be aware of two types of money for the AP exam: ■ Fiat money:Money that is decreed by the gov ...
■ Government:The government has given currency value by granting its ability to be exchanged for goods and services. People feel ...
The Federal Open Market Committee (FOMC)is made up of the seven members of the Board of Governors and five of the presidents of ...
Which one of the following is a function of the Federal Reserve? A. Printing money B. Collecting taxes C. Controlling the elect ...
The power of the multiplier depends on two factors. First, when a bank holds onto excess reserves, it is not fully maxi- mizing ...
When the Fed decides to buy, it gives money to banks (or the economy), and this expands the supply of money. When the Fed decide ...
The Effects of Monetary Policy The following tables illustrate the effects of monetary policy on various portions of the economy ...
Mini-Review Which of the following is a main principle held by monetarists? A. Aggregate demand depends on government involveme ...
choosing to give up more value added to your money. Typically, people react to higher interest rates by holding money (sometimes ...
Problems the Fed Encounters Part of the responsibility of being the central monetary authority of the United States is creating ...
Stagflation Stagflationis when the economy is experiencing negative growth in GDP with a simultaneous rise in the price level. M ...
A Closer Look at Unemployment and Inflation Low unemployment and low inflation are both goals of economic policymakers. Both mon ...
Figure 6-5 You will need to understand the Philips Curve model for the AP exam. Usually, the exam includes several questions rel ...
Inventory Fluctuations and Unemployment Businesses hold inventories based on what they expect their sales to be. When aggregate ...
Chapter Review Questions Which of the following are considered open-market activities? A. Raising taxes B. Increasing spending ...
When does the value of the spending multiplier decrease? A. When taxes are reduced B. When imports decline C. When exports decl ...
D. Whenever the propensity to save increases, the value of the spending multiplier decreases because as people are saving more, ...
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Elasticities We are now going to shift our attention to taking a closer look at our economy. With macroeconomics, we reviewed co ...
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