ECO 2142 Study Guide - Midterm Guide: Phillips Curve, Liquidity Trap, Price Level
9 Feb 2015
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Instructions: the exam lasts 1 hour and 15mns, the exam is worth 100 points in total: 2. 5 points for each question, write your answers in the blanks below. You won"t get credit for circled answers: there is no need to explain your answers, good luck! 8________ 13_______ 18_______ 23_______ 28_______ 33_______ 38_______ Now suppose there is an open market purchase of bonds by the central bank. Now suppose there is an increase in government spending and an adjustment open market sale of bonds by the central bank. Now suppose there is an increase in government spending, an open market sale of bonds by the central bank and deflation. Every student receives 2. 5poinst extra as result from the previous year: individuals changed the way they formed expectations of inflation, in canada, the following equation phillips curve was estimated for 1970-2007: t - t-1 = 3. 2% - 0. 4ut.
