<p>Who else is taking this next week Thursday?</p>
<p>I find that it will be far harder than Micro!</p>
<p>I am taking it, but I think that it will be easier than Micro. I find it easier mostly because we just finished macroeconomics so its fresh in my mind.</p>
<p>I’m taking both… Macro is way easier than micro.</p>
<p>^im completely the opposite</p>
<p>i had micro last semester and macro this semester, i prefer micro in EVERY way over macro</p>
<p>its just too many concepts!</p>
<p>i currently prefer micro only because i learned nothing about macro from my teacher this semester.</p>
<p>AD/AS = Macro Test</p>
<p>Lol @ BigB. =D</p>
<p>it’s true :P</p>
<p>I keep getting confused on interest rates, inflation, price index…etc
All that monetary policy and money crap. </p>
<p>Otherwise, it doesnt look too bad. I did a practice MC test today and I missed like…half but I got confused on interest rates, which kinda messed up everything haha. It was a lot easier than I expected though…</p>
<p>AHH. I’m still not ready. I dont even want to think about micro yet.</p>
<p>[url=<a href=“2007 Macro FRQ | PDF | Demand For Money | Interest”>2007 Macro FRQ | PDF | Demand For Money | Interest]2007%20Macro%20FRQ[/url</a>]</p>
<p>Can someone help me? On slide 5, was does DD, ER, M, and Mm stand for?</p>
<p>I am taking the Macro and it has so many graphs and things to remember. Remembering all the axis are gonna kill me…</p>
<p>my teacher recommended “5 steps to a 5”
he is a reader and he says a good friend of his at a university wrote it</p>
<p>DD = Deposit Demand? (Checkable Deposits is how we learned it)
M = Money
Mm = Money Multiplier and I have no idea what ER means, estimated returns?</p>
<p>I hope you all fail. Better curve for me XDXD</p>
<p>i find that i should be reviewing fiscal/ monetary policy and types of unemployment</p>
<p>as well as demand for loanable funds and foreign exchange in relation to currency value</p>
<p>Same here gpowsang!</p>
<p>Care to teach me? They say teaching is the best way of learning…</p>
<p>^lol i would definetly help…but as i said, I NEED TO REVIEW IT</p>
<p>i find fiscal/monetary policy to be a substantially huge part of the test, so reviewing just that would help a lot</p>
<p>if ur gonnna get a cram book now, id suggest “5 steps to a 5”</p>
<p>ER = excess reserves…</p>
<p>idk, i’m sort of nervous about the test just because the questions tend to be really long in the multiple choice… like 5-6 lines… haha doesn’t seem like much until your eyes are glazing over in the middle of Micro XD</p>
<p>Fiscal Policy - This is what the government does they have control over tariffs, taxes, etc. When the government implements expansionary policy it lowers tariffs and taxes in order to increase consumption. Decreasing business taxes would increase AD and AS because of lowered production costs, plus increase in profits that will increase disposable income of workers. However, the problem with Fiscal Policy is that there are three major lags: Recognition Lag, Administrative Lag, and Operational Lag. Monetary policy does not have administrative lag. </p>
<p>Monetary Policy - This is what the Fed does and can control the amount of money in circulation through Open Market Transactions. If the Fed wants to lower interest rates it will have to increase money in circulation. To do so the Fed will Buy securities from banks. The banks will now have more in reserves, which will lower interest rates. This could potentially stimulate growth through investment spending, increasing AD. There are leakages in this system because banks can keep excess reserves and not lend more money out to the public. Also Monetary Policy is Asymmetric meaning that is has a easier time slowing down the economy (contractionary policy) compared to stimulating the economy (expansionary policy) think about our current recession.</p>
<p>If you guys ask specific questions I would be happy to answer them, just saying fiscal or monetary is fairly broad.</p>
<p>vasudevank</p>
<p>thanks so much for ur “abridged” definitions. It really saves a lot of time compared to reading entire sections on it lol.</p>
<p>I just find there are a lot of fiscal/MP related questions on the multiple choice.</p>
<p>thanks again!</p>