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Introduction To Macro_FIN-3AB_20251

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Rapid growth in peer-to-peer lending platforms increases consumer borrowing and spending. In the short run, unemployment declines, but inflation rises faster than expected. What best explains this outcome?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

An emerging economy reduces unemployment through rapid demand growth, but inflation accelerates. How might this macro condition affect international marketing decisions?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

To reduce inflation, policymakers implement tight monetary and fiscal policies. In the short run, unemployment rises sharply before stabilizing later. What economic principle is demonstrated here?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

A country faces rising inflation and unemployment at the same time after a sharp increase in global commodity prices. Which explanation fits best?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

If workers and firms begin to expect higher inflation, what is the most likely impact on the relationship between inflation and unemployment?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

A central bank lowers interest rates to reduce unemployment after a recession. Within a year, inflation starts to rise faster than expected. What best explains this outcome?

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept

and theory

Stagflation mainly induced by

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept

and theory

Indonesia Anggaran Pendapatan dan Belanja

Negara mentions inflation target. The rational expectation theory suggest that

business will increase its product price by

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept

and theory

Consider stagflation period. If monetary authority

pursue expansionary monetary policy, the benefits of lower unemployment rate

will be reduced by

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept

and theory

The unemployment results in lower aggregate

demand. The policy maker strategy to stimulate and grow aggregate demand

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