LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Cost-push inflation will be higher if central bank increase

interest rates.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

Demand-pull inflation can be managed by monetary policy.

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., the

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

experiences full employment.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

The Phillips Curve is valuable because of its nonlinearity

characteristics.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

The full employment rate should be tied to inflation

targets.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

If the government wants 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? Government

want to maintain stable prices.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

What is the desirable path of aggregate demand shift?

Government want to maintain stable prices.

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

When the average level of interest rates increases, why are

delinquency rates rising?

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory

When the unemployment rate increases, why do consumers maintain

their buying behaviour?