I have a take-home test and I don't understand it.
Explain the classical concept of the velocity of money.
What is the relationship between the velocity of money and the price level?
Analyze the following economic situations as to their effect on the velocity of money: (would it speed up velocity or slow down velocity?
Employers decide to pay all U.S. workers weekly instead of bi-monthly or monthly.
The decision of the U.S. Government to increase the stock of money.
The decision by U.S. corporations to increase the output of all other factors being constant.
The decision by U.S. consumers to increase present consumption and decrease future consumption.
In the classical theory what factor determines aggregate demand, which in turn determines the price level?
According to classical theory what three factors lead to long-term economic growth?
Explain the statement that business investment depends inversely on the rate of interest while personal saving depends directly on the rate of interest.
What were the two tenets or beliefs of mercantilism that the classical economists found to be objectionable? What was the role of money in mercantilist thinking and what was the role of money in the classical viewpoint?
In the classical theory of labor supply, it was believed that the individual attempts to maximize what factor? He will attempt to reach a point of a trade-off between what two factors? What two effects come into play in reaching this trade-off?
In classical theory, the output is solely determined by the supply of labor (our demand for the product does not affect it). Given this factor, the classical aggregate supply curve will have what shape?
What are the three sources of revenue available to the U.S. to finance deficit spending?
What is the effect on the U.S. economy if the first source is used?
What is the effect on the U.S. economy if the second source is used?
What is the effect on the U.S. economy if the third source is used?
I have a take-home test and I don't understand it.
Explain the classical concept of the velocity of money.
What is the relationship between the velocity of money and the price level?
Analyze the following economic situations as to their effect on the velocity of money: (would it speed up velocity or slow down velocity?
Employers decide to pay all U.S. workers weekly instead of bi-monthly or monthly.
The decision of the U.S. Government to increase the stock of money.
The decision by U.S. corporations to increase the output of all other factors being constant.
The decision by U.S. consumers to increase present consumption and decrease future consumption.
In the classical theory what factor determines aggregate demand, which in turn determines the price level?
According to classical theory what three factors lead to long-term economic growth?
Explain the statement that business investment depends inversely on the rate of interest while personal saving depends directly on the rate of interest.
What were the two tenets or beliefs of mercantilism that the classical economists found to be objectionable? What was the role of money in mercantilist thinking and what was the role of money in the classical viewpoint?
In the classical theory of labor supply, it was believed that the individual attempts to maximize what factor? He will attempt to reach a point of a trade-off between what two factors? What two effects come into play in reaching this trade-off?
In classical theory, the output is solely determined by the supply of labor (our demand for the product does not affect it). Given this factor, the classical aggregate supply curve will have what shape?
What are the three sources of revenue available to the U.S. to finance deficit spending?
What is the effect on the U.S. economy if the first source is used?
What is the effect on the U.S. economy if the second source is used?
What is the effect on the U.S. economy if the third source is used?
