June 06, 2003

Discussion of Old Exam Questions

Effects of improved worker productivity on the price level. The lower-left diagram is a review of marginal tax rate cuts vs. lump sum rebates.

P6060111a.jpg

A backward-bending labor supply curve:

P6060113a.jpg

Paypal and/or ATMs increase the velocity of money:

P6060116a.jpg

How deflation and zero interest rates make it difficult to stimulate the economy by shifting the LM curve.

P6060114a.jpg

Posted by bparke at June 6, 2003 03:04 PM