Demand and supply

Here is a list of written questions on economics. See attached file for full problem description.

GDP

Between March 2001 (the official start of the recession) and March 2002, measured RGDP in the economy actually rose by about 2.5%, even though total employment in terms of hours worked declined by 1.8% and the unemployment rate rose sharply from 4.3% to 5.8% (The GDP Deflator only increased by about 1% - 1.4% during this period) ...continues

RGDP

Assume the economy in March 2001 was exactly at full employment. Draw an AS/AD diagram representing the economy's "before" position in March 2001 and its "after" position in March 2002. Make sure your diagram illustrates a simultaneous increase in RGDP and the unemployment rate, with little overall change in the price level. Exp ...continues

US treasury

Suppose that as a result of a recession consumer expectations of annual inflation declined from 2% to 1.5% and, at the same time, the expected real rate of return required to equate investor demand to the existing supply of default risk- free Treasury bonds declined from 3% to 1%. What would you expect to happen to the nominal ...continues

S/D diagram - US treasury

As a result of a recession consumer expectations of annual inflation declined from 2% to 1.5% and, at the same time, the expected real rate of return required to equate investor demand to the existing supply of default risk- free Treasury bonds declined from 3% to 1%. Draw a supply/demand diagram of the US Treasury bond ma ...continues

(Changes in Government Purchases)

Assume that government purchases decrease by $10 billion, with other factors held constant. Calculate the change in the level of real DGP demanded for each of the following values of the MPC. Then calculate the change if the government, instead of reducing its purchases, increased autonomous net taxes by $10 billion. a. 0.9 ...continues

(Money Multiplier)

Suppose that the Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier, assuming that excess reserved are held to zero and there are no currency leakages? What are the money multipliers for required reserve ratios of 0.15 and 0.20?

Money Creation

Suppose Bank A, which faces a reserve requirement of 10 percent, receives a $1000 deposit from a customer. a. Assuming that it wishes to hold no excess reserves, determine how much the bank should lend. Show your answer on Bank A's balance sheet. b. Assuming that the loan shown in Bank A's balance sheet is redeposited ...continues

Fed and Money Supply

Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion. a. Given a required reserve ratio of 0.25, what should it do? b. If it decided to change the money supply by changing the required reserve ratio, what change should it make?

Definition

I'm just looking for the definition of semi-elasticity.