1A-) Using the appropriate diagram and explanation,
discuss what is meant by the liquidity trap
2A-) What is the relationship of the liquidity trap to
the degree of effectiveness of the various economic
policies?
1A-) Using the graph, explain what is meant by the Yield
Curve and the forms it takes?
2A-) By checking at it, do you think that this curve can
be used as a future indicator for the performance of the
economy?
What is a Liquidity Trap? Suppose the policymakers want to boost
an economy in the event of a liquidity trap. What policy would you
recommend and why? Explain your answer using IS-LM diagram(s
What is a competitive labor market?
What is a monopsony?
Using an appropriate graph explain the effect of a minimum wage
law on employment if the labor market is a monopsony.