1. The “classical dichotomy” refers to the separation of:
(a) supply-side factors vs. demand-side factors.
(b) changes in the domestic (or closed) economy vs. changes abroad
(or an open economy).
(c) short-run fluctuations vs. long-run economic growth.
(d) real vs. nominal variables.
(e) the public sector –government spending and tax revenues– vs.
the private sector (C and I).
2. Which of the following does not explain the slope of the
aggregate demand curve?
(a) the wealth effect.
(b) the interest-rate...
Classify each of the following as more likely to be on the
demand or supply side of the exchange rate market for
Australian dollars.
A U.S. firm Ford selling cars in Australia
Answer: (circle the correct
answer)
(3
points)
Demand Supply
An Australian tourist Oliver visiting the
U.S.
Answer: (circle the correct
answer)
(3
points)
Demand Supply
A U.S. investor who seeks to invest in the Australian
Kangaroo breeding business
Answer: (circle the correct
answer)
(3
points)
Demand Supply
An...
1. Which of the two policies, monetary or fiscal, do you think
would be more effective in a time of recession? Discuss and
explain.
2. Tax cuts are debatable topics. Does it help or hurt the
relatively poorer segment of the population? You can take either
side but make sure to substantiate your thought with
references.
Discuss how the economy can have inflation from the demand side
and from the supply side. Discuss the purpose of the Phillips curve
and the shape of the Phillips curve in the long-run.
Explain one of the reasons why policy makers usually focus on
demand-side policies to achieve their macroeconomics goals as
opposed to the supply-side ones.
For this discussion board, explain one of the reasons why
policymakers usually focus on demand-side policies to achieve their
macroeconomic goals as opposed to the supply-side ones. Be sure to
include concepts from the chapters.
Provide one example of a demand-side policy and explain why and
how it causes the aggregate demand to shift.
Similarly for the supply side, you need to explain one of the
reasons why some may prefer to use supply-side policies.
Provide one example of a...