Chapter36:Current Issues in Macro Theory and Policy
Key Questions
1. Suppose that the money supply and the nominal GDP for a hypothetical economy are $96 billion and $336 billion, respectively. What is the velocity of money? How will households and businesses react if the central bank reduces the money supply by $20 billion? By how much will nominal GDP have to fall to restore equilibrium, according to the monetarist perspective?
2. Use an AD-AS graph to demonstrate and explain the price-level and real-output outcome of an anticipated decline in aggregate demand, as viewed by RET economists. (Assume that the economy initially is operating at its full-employment level of output.) Then demonstrate and explain on the same graph the outcome as viewed by mainstream economists.
3. Place "MON," "RET," or "MAIN" beside the statements that most closely reflect monetarist, rational expectations, or mainstream views, respectively:
- Anticipated changes in aggregate demand affect only the price level; they have no effect on real output.
- Downward wage inflexibility means that declines in aggregate demand can cause long-lasting recession.
- Changes in the money supply M increase PQ; at first only Q rises because nominal wages are fixed, but once workers adapt their expectations to new realities, P rises and Q returns to its former level.
- Fiscal and monetary policies smooth out the business cycle.
- The Fed should increase the money supply at a fixed annual rate.
Chapter 36 Key Question Solutions(113.0K)FAQs
A key question is a form of words addressed to a person in order to elicit information or evoke a response; interrogative sentence. It is a formula to get the whole truth about a problem. Who, What, Why, When, Where, How, How Much? - Consultant's Mind.
Do you ask enough questions or do you stay with what you know? ›
If what I know is not good enough, I'm going to ask questions until it helps what I already know! I ask questions because I like to know as much as I can so I don't have to wonder later. If I don't know or if I'm unsure of something, I ask questions.
Why are key questions important? ›
key questions will help to elaborate, on complex issues, Wicked problems, and guides you to move in the right direction. key questions help us to create visuals on any problem or complex issues, due to visualisation we are able to express our ideas more clearly and all stakeholders come on the same page.
What is more important questions or answers? ›
“It is not the answer that enlightens, but the question.” ~ Eugene Ionesco. Questions are at the heart of every great conversation. They make us think, grow, and challenge our beliefs.
What are the 8 key questions? ›
Q-Chat
- Fairness. How can I act equitably and balance legitimate interests?
- Outcomes. What achieves the best short- and long-term outcomes for me and all others?
- Responsibilities. What duties and/or obligations apply?
- Character. ...
- Liberty. ...
- Empathy. ...
- Authority. ...
- Rights.
A key answer is an answer that is key. That is, it's the most important of several possible answers to a question.
Why is answer key important? ›
For Students - Answer key plays a positive role by helping students in identifying the questions where they made mistakes and need improvement. It also tells the student's stronger section. So overall, it gives insight to students to plan their study accordingly to achieve their goals.
What are the five types of questions? ›
There are five basic types of questions: factual, convergent, divergent, evaluative and combination. Factual questions solicit reasonably simple, straightforward answers based on obvious facts or awareness.
What is a key learning question? ›
A 'key learning question' is simply a way of framing the learning in a lesson or across a sequence of lessons – of setting the learning agenda for pupils.
Why is answering questions important? ›
Answering and asking questions is an important part of learning. We ask questions in order to learn more information about something, and we answer questions to provide more information.
Powerful questions can help the receiver of the question move forward and learn how to take action, set goals, and get the help they need.
What is an example of a key inquiry question? ›
Example key inquiry questions
What were the economic, military and political causes of Rome's departure from Britain in AD 410? What archaeological evidence exists to confirm Suetonius' descriptions of Nero's 'Domus Aurea'?
What are key questions in a lesson? ›
A 'key learning question' is simply a way of framing the learning in a lesson or across a sequence of lessons – of setting the learning agenda for pupils.
What are key words for questions? ›
Question keywords are search queries that contain interrogative words like who, what, when, where, why, or how. Question keywords are usually long-tail, low-volume, and have a specific search intent behind them — whether that's to find a quick answer or an in-depth response.
Chapter 36 Key Question Solutions(113.0K)
