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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

Country risk has effect on

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

The left side of NAIRU suggests

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

The government spending will be targeted to shift NAIRU to

the

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Stagflation is more related with cost push than demand pull

inflation

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

LM (Liquidity Preference) is more related to monetary policy

because monetary policy has direct effect on interest rates

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IS (Investment-Saving) curve is more related to monetary

policy because monetary policy has direct effect on saving rates

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

One strategy to reduce the inflation pressure potential is

increasing real GDP potential

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Cost push inflation suggest that aggregate supply curve

shift to the right while the aggregate demand curve does not shift.

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Demand pull inflation suggest that aggregate supply curve does

not shift while the aggregate demand curve experience diagonal shift

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LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

If the government has an inflation target of 3% p.a., and

the inflation target is reached with an unemployment rate of 5%. The country

experiences full employment.

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