Show:
Output Gaps / Wages
Demand-Pull Inflation
Cost-Push Inflation
Classical v Keynesian
Miscellaneous
100
What are "sticky" wages?
Wages that are determined in long-term contracts, so a lag exists in relation to inflationary/deflationary gaps and wage determination
100
Give a demand pull inflation factor for each term of the GDP equation
What is C=increase in tastes and preferences, I=more business investing in factories, G=more interstates, NX=foreigners want to buy more of our cars
100
Define Cost-Push Inflation
What is a decrease in the SRAS that causes inflation and unemployment
100
What is the Keynesian school of economic thought names after?
What is John Maynard Keynes
100
What element on the Periodic Table begins with K?
What is Krypton
200
What is stagflation?
What is a leftward shift of the AS curve
200
What is the three step process of demand pull inflation and the accompanying long-run adjustments IN DETAIL
What is some exogenous source of spending shifts AD out, inflation rises and wages rise, due to higher input prices, supplies reduce production and SRAS shifts in
200
Give an example of a supply SHOCK
What is war or a hurricane
200
What is the distinguishing factor between Classical and Keynesian?
What is how the economy adjusts in response to inflation
200
How many US states border the Gulf of Mexico
What is 5
300
Where did menu costs get their name?
It is impractical for a restaurant to continually change prices on their menu, so it takes time for prices to change
300
What is my middle name, which begins with a K
What is Keith
300
Describe the steps of cost-push with the accompanying long-run adjustments
What is SRAS shifts out due to a supply shock, in the long run, the SRAS shifts back out to maintain equilibrium
300
What large-scale financial intermediary declared bankruptcy and disappeared as a result of the financial crisis and why?
What is Lehman Brothers, they became insolvent
400
How do employers eliminate risk in wage costs?
They have workers enter contracts and agree on a set, determined price until the contract expires
400
What happened to the Ebola patient, who was previously a nurse?
What is She was moved to the NIH hospital in Bethesda
400
What happens if you try to correct stagflation with a policy (fiscal or monetary)?
What is more inflation
400
What does the classical argument say?
What is wages and prices are fully flexible and the economy can self-correct when faces with a recessionary or inflationary environment
400
Who averaged one patent for every three weeks of his life?
What is Thomas Edison
500
I ran out of questions for this section, you guys obviously know your stuff
Here's 500 free points split between you two
500
If the original AD curve intersected the y-axis at 500 and the x-axis at 1,000, and the AS curve had a slope of 1/2 intersecting the axes at 0, what is the long-run output?
What is 500
500
What did I have breakfast this morning?
What is Oatmeal and a banana with a hot cup of joe
500
Illustrate the Keynesian and Classical arguments on as AD-AS graph when there currently is a recession
What is Classical--> SRAS shifts out; Keynesian-->AD shifts out
500
What country is fairly cut in halves by the Tropic of Capricorn?
What is Australia