Business, 11.01.2021 23:10 dawood2042

1. Define and explain each concept and give specific examples: a. Velocity of Money and Hyperinflation (/2) b. Deficit Spending and National Debt (/2) c. Crowding-Out and Private Investment (/2) d. Fiscal Policy and Supply-side Fiscal Policy (/2) 2. The Phillips Curve a. Draw the short-run and long-run Phillips curve. Label three points representing a recessionary gap, an inflationary gap, and full employment output. Identify what happens to the short-run Phillips curve when there is a change in aggregate demand and when there is a change in aggregate supply (/3) 3. Economic Growth a. Define capital stock. Use the aggregate demand and supply to show the effects of a decrease in interest rates in the short-run and in the long-run. Explain why each curve shifts. Also explain why an increase in consumer spending would not have the same effect in the long-run. (/3)

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1. Define and explain each concept and give specific examples: a. Velocity of Money and Hyperinflati...

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