I need an explanation for this Economics question to help me study.
Definitions. (Define 10 terms. Provide examples where pertinent)
- Monetary base
- Consumer Price Index
- Business Cycle
- Demand deposits
- Time Deposits
- Producer price index
- Price deflator
- Bank reserves
- Gross domestic income
- Treasury securities
II. Essay Questions
- a)What is GDP? Provide at least 2 interpretations of the concept GDP
- b)Explain the relationship between Aggregate Demand and GDP.
- c)Develop a mathematical model explaining GDP, and describe the impact of each its components.
- d)What is the Keynesian theory of the macro economy? Use the AD/AS model to explain.
- e)What is the Fiscal policy? What are the goals of Fiscal Policy? What are the tools of Fiscal Policy?
- f)Explain how contractionary fiscal policy would be implemented. What are the difficulties in implementing this?
- g)How effective do you believe fiscal policy to be?
- a)What is money? What, today, comprises money?
- b)What is monetary theory? Explain the Equation of Exchange. What is the role of money in the macro economy?
- c)What is the Federal Reserve? What are its important functions?
- d)What is monetary policy? why are banks the means (mechanism) by? Which monetary policy must work?
- e)What are the goals of monetary policy?
- f)What are the tools of monetary policy? explain each
- g)What is the target variable?
- h)Give an example of expansionary monetary policy, showing the role of the Fed, banks, and any other economic entity.