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• ISBN:

  0133460622

• ISBN-13:

  9780133460629

• Authors:

  Robin Bade, Michael Parkin

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Sample questions asked in the 7th edition of Foundations of Macroeconomics:

Use the following information to work Problems. Figure 1 shows the aggregate demand curve, AD , and the short-run aggregate supply curve, AS , in the economy of Freezone. Potential GDP is $300 billion. What happens in Freezone if the central bank conducts an open market sale of securities? How will the interest rate change? Do you recommend that the central bank conduct an open market sale of securities? Why?

Use the following information to work Problems. The Social Network had world-wide box office receipts of $225 million. The movie had a production budget of about $70 million and additional marketing costs of about $50 million. Creating a successful movie brings pleasure to millions, generates work for thousands, and makes a few people rich. What are some of the components of marginal cost and marginal benefit that the producer of a movie faces?

A bank has $500 million in checkable deposits, $600 million in savings deposits, $400 million in small time deposits, $950 million in loans to businesses, $500 million in government securities, $20 million in currency, and $30 million in its reserve account at the Fed. Calculate the bank’s deposits that are part of M1, deposits that are part of M2, and the bank’s loans, securities, and reserves.

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