LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

According to Phillips Curve, the relations of wages

inflation and unemployment rate is linear.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

The full employment rate suggests that there are

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

If the government want to have zero price level increase,

what is the combination of aggregate demand and supply shift?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

What is the desirable path of aggregate supply shift? We

want to maintain price level.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

What is the desirable path of aggregate demand shift? We

want to maintain price level.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

When the average level of interest rates increases, why do

consumers purchase less big-ticket item, such as vehicles?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

When the average level of prices in the economy increases,

why do consumers purchase less?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Aggregate demand is downward sloping because of

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Government plan to increase government spending and as the

results the budget deficit will increase. What is the likely action of the

government to fund the spending?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Consider a free float exchange rate regime. When a country's

real interest rates are rising, then the country's domestic currency exchange

rate relative to USD will experience