ECO102H1 Study Guide - Final Guide: Open Market Operation, Gross Domestic Product, Autonomous Consumption
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ECO102H1 Full Course Notes
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Almost all of the following questions have appeared on final exams. Trade sometimes appears as a question in the macro portion of the exam, so there are some questions on that topic here too. As suggested in the preamble to the micro review, you might consider trying these questions, without peeking at answers, in 70 minutes. Consider the aggregate expenditure (ae) model with a stable price level. Suppose that an economy is in equilibrium initially. The impact of monetary policy on real output (or real gdp) will be greater, the: flatter the demand for money (or lp = liquidity preference) curve and the investment demand (or mei = marginal efficiency of. A tax cut in canada, with a flexible foreign exchange rate, will cause: a decrease in the interest rate, which will lead to an increase in the. Canadian dollar) a decrease in the interest rate, which will lead to an decrease in the.
