Europe. 2. There are two channels through which the US crisis became a world crisis. The trade channel and the financial channel. 3. The multiplier illustrates the extent to which equilibrium output will change as a result of a given change in autonomous demand.

Europe. 2. There are two channels through which the US crisis became a world crisis. The trade channel and the financial channel. 3. The multiplier illustrates the extent to which equilibrium output will change as a result of a given change in autonomous demand.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 8E

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Question

1. Labor market rigidities and explain how they might cause the relatively high unemployment in
Europe.
2. There are two channels through which the US crisis became a world crisis. The trade channel and the financial channel.
3. The multiplier illustrates the extent to which equilibrium output will change as a result of a
given change in autonomous demand.

4. Bonds are considered as assets for a central bank but for a bank as well.

Explain the statements whether T/F elaborately...

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