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**Econ-UA_231 Money and Banking - Open-source scalable
Graphical User Interface -- Fall 2001**
**Professor: Bhiladwalla, Maharukh | Department of Economics,
NYU | Email: Bhiladwalla,.Maharukh@nyu.edu**
**Midterm 3**
Circle time you attend class
Name:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Email:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**Section: 8pm**
**WHEN HANDING IN PUT YOUR BUBBLE SHEET IN THE
ENVELOPE marked with time of Friday recitation that you ATTEND**
Please don't start the exam until you are given the go ahead.
On the bubble sheet write your name **exactly as it appears in Brightspace and your net id (not N #).**
Write your name and net id **on ALL parts of the exam**.
Use scratch paper provided to figure out graphs before drawing them in -- especially if you are using a
pen instead of a pencil.
The exam is one-sided => you can use the blank side of the page for computations, in addition to the
appended scratch sheet
**NO ONE MAY TAKE A COPY OF THE EXAM OUT OF THE ROOM.
THE EXAM WILL BE POSTED WITH THE SOLUTIONS AFTER THE
GRADES ARE OUT.**
**For Instructor/TA use only:**
-----------------------------------------------------------------------
Q1 /20
----------------------------------------- -----------------------------
Q2 /20
Short Answer /15
Bubble Sheet /42
**TOTAL** /100
-----------------------------------------------------------------------
**Question 1** (22 points)
Economy equilibrium fiscal policy demand equilibrium economy unemployment. Equilibrium market
inflation fiscal policy equilibrium unemployment. Equilibrium monetary policy inflation equilibrium
economy supply market. Equilibrium fiscal policy economy equilibrium supply market supply monetary
policy. Unemployment equilibrium inflation equilibrium inflation. Fiscal Policy fiscal policy inflation
inflation. Market supply monetary policy GDP supply unemployment. Monetary Policy demand
equilibrium equilibrium. Monetary Policy market fiscal policy economy economy inflation. Inflation GDP
market fiscal policy fiscal policy unemployment fiscal policy. Fiscal Policy inflation inflation
unemployment monetary policy fiscal policy supply.
(a) Inflation fiscal policy monetary policy monetary policy supply.
(b) Supply unemployment equilibrium GDP.
Econ-UA_231
**Question 2** (20 points)
Market demand fiscal policy monetary policy inflation economy inflation. Unemployment economy
monetary policy economy market. Fiscal Policy monetary policy supply fiscal policy supply market fiscal
policy. Monetary Policy economy monetary policy demand supply economy. Market supply demand
demand GDP inflation. Fiscal Policy supply unemployment GDP demand. Fiscal Policy GDP
equilibrium economy GDP market market. Fiscal Policy unemployment inflation equilibrium market
market inflation.
(a) Fiscal Policy equilibrium supply fiscal policy demand market supply monetary policy.
(b) Monetary Policy fiscal policy economy market inflation.
(c) Economy market economy market supply unemployment.
(d) Supply market supply demand monetary policy.
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Assignment: Chap 7 6
Saved
Help
Save
The annual output and prices of a three-good economy are shown in the table below.
Quantity of
Goods Year 1
Quantity of
Goods Year 2
10
Good
Price Year 1
Price Year 2
points
Quarts of ice cream
Bottles of shampoo
Jars of peanut butter
$4.00
3
$3.00
$2.00
$4.00
$3.00
$2.00
1
2
3
eBook
Instructions: Enter your answers as a whole number.
Print
a. What was the economy's nominal GDP in year 1?
References
b. What was its nominal GDP in year 2?
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Exhibit 15-5
Price
level
Potential output
b
a
Real.
GDP
0
Exhibit 15.5 depicts the aggregate demand curve and the short-run aggregate supply curve of an economy. In this figure, short-run equilibrium
occurs at
O a. point b, where actual output exceeds potential output.
O b. point a, where actual output exceeds potential output.
O c. point c, where the actual price level is less than the expected price level.
O d. point c, where the actual price level exceeds the expected price level.
O e. point b, where the actual price level exceeds the expected price level.
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Topic 8 Assignment
6. Problems and Applications Q5
The following graph shows the long-run aggregate-supply curve (LRAS), the short-run aggregate-supply curve (AS), and the aggregate-demand curve
for an economy.
A-Z
目
LRAS
Aggregate Supply
Aggregate Demand
Aggregate Supply
bongo
Aggregate Demand
Quantity of Output
The economy is in a recession
v with low v unemployment and low
output.
True or False: To return the economy to the natural rate of output, the Fed could sell government bonds.
O True
O False
7:15 PM
O Type here to search
57°F
2/26/2022
Price Level
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a. Given the situation, is the Fed likely to adjust monetary policy? If so how?
b. Recently, the Fed has allowed the money supply to expand beyond its long term target range. Does this affect your expectations of what the Fed will decide at its upcoming meeting?
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Now consider the following Edgeworth box, which shows all the possible distributions of coconuts and bananas
ols
between Akshay and Madeline if they engage in trade solely with each other. Akshay's indifference curve is given by
the lower curve (blue) and corresponds to the axes with the origin on the bottom left. Madeline's indifference curve is
given by the inverted curve (purple) and corresponds to the axes with the origin on the upper right.
BANANAS
MADELINE'S ORIGIN
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6-
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COCONUTS
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AKSHAY'S ORIGIN
The initial endowment bundles are represented by point
O search
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Related Questions
- Write a report highlighting how simulation methods can be embraced in banking sectorarrow_forwardplease type this, don’t write it. Thank you!arrow_forward* My Account x VHL Central x * VHL | VISTA X Launch Mee x O Your Shoppi x O Settings - AX ! Downloads x B Blackboard X D Announcem X A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/g -> -> E Apps G Gmail O YouTube O Maps Assignment: Chap 7 6 Saved Help Save The annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Quantity of Goods Year 2 10 Good Price Year 1 Price Year 2 points Quarts of ice cream Bottles of shampoo Jars of peanut butter $4.00 3 $3.00 $2.00 $4.00 $3.00 $2.00 1 2 3 eBook Instructions: Enter your answers as a whole number. Print a. What was the economy's nominal GDP in year 1? References b. What was its nominal GDP in year 2? $1 %24 Mc Graw Hill DD 888 $11 esc F5 F6 F7 FR F9 F10 F1 F2 F3 F4 @ 23 $ & 2 4 6. 7 8 9arrow_forward
- dTap-Ce X Sales Channe X Bb The Stockhold X O Mail - Stepha X PPTX File vie X Bb The Stockhol X+ V o/index.html?deploymentid=58326418565810828045741812973&eISBN=9781337915601&id=1476281073&snapshotld=29188288 E MINDTAP Q Search this Exhibit 15-5 Price level Potential output b a Real. GDP 0 Exhibit 15.5 depicts the aggregate demand curve and the short-run aggregate supply curve of an economy. In this figure, short-run equilibrium occurs at O a. point b, where actual output exceeds potential output. O b. point a, where actual output exceeds potential output. O c. point c, where the actual price level is less than the expected price level. O d. point c, where the actual price level exceeds the expected price level. O e. point b, where the actual price level exceeds the expected price level. bike 2 bike 2.jpg A bike jpg.jpg A ^O ENG 4- OL 5 C SRAS AD 6 & + 8 ( A ol f10 ► 11arrow_forwardQ ch 14 Flashcards | Quizlet b Search results for 'The following x + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5984331885001331312624185366&elSBN=9780357133699&id=138. & Paused E Apps * Bookmarks Aol. AOL.com - Welcom... 6 HRCP USF FCU G Inbox Gmail EDD Employment Devel.. 2 Pocket Prep O Other bookmarks E Reading list AT&T Yahoo Mail >> CENGAGE MINDTAP Q Search this course Topic 8 Assignment 6. Problems and Applications Q5 The following graph shows the long-run aggregate-supply curve (LRAS), the short-run aggregate-supply curve (AS), and the aggregate-demand curve for an economy. A-Z 目 LRAS Aggregate Supply Aggregate Demand Aggregate Supply bongo Aggregate Demand Quantity of Output The economy is in a recession v with low v unemployment and low output. True or False: To return the economy to the natural rate of output, the Fed could sell government bonds. O True O False 7:15 PM O Type here to search 57°F 2/26/2022 Price Levelarrow_forwardNo hand written solution and no img 5. “ As a manger of a firm, you are concerned about a potential increase in interest rates, which would reduce the demand for your firms’ products. The Fed is scheduled to meet in one week to assess economic conditions and set monetary policy. Economic growth has been high, but inflation has also increased from 3% to 5% over the last four months. The level of unemployment is so low that it cannot go much lower. a. Given the situation, is the Fed likely to adjust monetary policy? If so how? b. Recently, the Fed has allowed the money supply to expand beyond its long term target range. Does this affect your expectations of what the Fed will decide at its upcoming meeting? c. Suppose the Fed has just learned that the treasury will need to borrow a large amount of funds than originally expected. Explain how this information may affect the degree to which the Fed changes its monetary policy. (This question is from our textbook P. 111)arrow_forward
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- Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the average rate paid by banks on savings accounts is 0.80% at a time when inflation is around 1.95%. For the average saver, the real rate of interest on his or her savings is ___%.arrow_forwardOnly typed answerarrow_forwardThis is NOT for a grade ( please don't decline) Question 1: An American family goes on vacation to see h to r beautiful city of Cambridge England. They have budgeted $7000 to spend. How many pound Sterling will $7000 buy in month 1 vs month 2 and based on that when should they go vacation. Show your math Question 2: Japan Airlines is interested in purchasing new commercial aircraft from US at a price of $102 million per aircraft. What is the difference in the yen price between month 1 and month 2 based on this what month is Japan airlines more likely to buy. Show Math Question 3: An Irish family is buying Chinese Silk in a local retail store in Shanghai. Which month is it cheaper to buy. Show your matharrow_forward
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Recommended textbooks for you
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Principles of Economics 2e
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