Ecocnomics Money & Banking subjects questions


Monetary Economics

Prince Sultan University

Question Description

The questions will be on these three chapters

Chapter 21:The IS Curve

Chapter 22:The Monetary Policy and Aggregate Demand Curves

Chapter 23:Aggregate Demand and Supply Analysis

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Q1: the Phillips curves 1. a. Graph the Phillips curve. 2. b. Write down the equation that represent the Philips curve. 3. c. If the labor market is tight, what is the effect on the production cost and the aggregate supply curve. 4. d. Fill in the blanks: If expected inflation increases, nominal wages ________ to prevent real wages from .________ Q2: use the AD-AS model (in the S-R and L-R) to demonstrate and to analyze the effect of a decrease in the natural rate of unemployment on the total output and the inflation rate. ( /1.5 pts) ...
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