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Review of Exam 1

Review of Exam 1

Review of Exam 1. 1. In a simple model of the supply and demand for pizza, the endogenous variables are:. A) the price of pizza and the price of cheese. B) aggregate income and the quantity of pizza sold. C) aggregate income and the price of cheese.

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676 views • 51 slides
Introduction to Economic Fluctuations

Introduction to Economic Fluctuations

9 Introduction to Economic Fluctuations In this chapter, you will learn: facts about the business cycle how the short run differs from the long run an introduction to aggregate demand an introduction to aggregate supply in the short run and long run

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721 views • 41 slides
Slides 4

Slides 4

Slides 4. For the Final Exam. Homework A. Budget line stays the same due to unchanged Indifference curve stays the same due to unchanged preference Optimum stays the same P doubles Monetary policy has no effect on optimum since income and price both double.

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586 views • 37 slides
Do Flexible Durable Goods Prices Undermine Sticky Price Models?

Do Flexible Durable Goods Prices Undermine Sticky Price Models?

Do Flexible Durable Goods Prices Undermine Sticky Price Models? Bob Barsky, Chris House, Miles Kimball. University of Michigan. Common Features of Sticky Price Models One sector. Symmetric price rigidity. Often only non-durable goods. Reality Not all prices are equally sticky.

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491 views • 34 slides
Class Slides for EC 204

Class Slides for EC 204

Class Slides for EC 204. To Accompany Chapter 19. Learning objectives. This chapter presents an overview of recent work in two areas: Real Business Cycle theory New Keynesian economics. The Theory of Real Business Cycles. all prices flexible, even in short run

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415 views • 32 slides
CHAPTER NINE Introduction to Economic Fluctuations

CHAPTER NINE Introduction to Economic Fluctuations

CHAPTER NINE Introduction to Economic Fluctuations. Until now - theories to explain how the economy behaves in the long run . Those theories were based on the classical dichotomy -- the premise that real variables, such as output and employment,

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390 views • 25 slides
Sticky Prices in the News

Sticky Prices in the News

Sticky Prices in the News. The price of an Xbox 360 debuted at $300. It has stayed at $300 despite shortages. Microsoft plans to produce more units to meet demand rather than to raise prices. What if all firms behaved this way?. Sticky Prices in the News.

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127 views • 2 slides

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