increase the retirement age thì MS MD trong loanable market ra sao interest rate, investment như thế nào,

GDP trong
longrun ntn?

An increase in the retirement age would extend the working period of individuals, allowing them to save more over their lifetimes. As
a result, the overall savings in the economy would increase. More savings would increase the supply of loanable funds available for
lending.

The supply curve for loanable funds would shift to the right, leading to a lower equilibrium interest rate. Lower interest rates make
borrowing cheaper for businesses and individuals. This would likely lead to an increase in investment as the cost of financing new
projects decreases. Lower interest rate encourgae borrowing for investment

Monetary theory:

Real GDP not change in the LR

Monetary developments

Influence nominal variables

Irrelevant for explaining real variables

Monetary neutrality*

Proposition that changes in the money supply do not affect real variables

Not completely realistic in short-run

Correct in the long run

Còn đề As ad là cho Money supply tăng thì ngắn hạn và dài hạn GDP, P level, unemployment rate ntn

Government spending=> budget deficit

Increase in GDP:

 Aggregate Demand: A budget deficit usually involves increased government spending (G) or reduced taxes, both of which boost
aggregate demand. This can lead to an increase in real GDP in the short run.

 Multiplier Effect: The initial increase in government spending or reduction in taxes can have a multiplier effect, leading to further
increases in consumption (C) and investment (I), which further boosts GDP.

Increase in Price Level:

 Demand-Pull Inflation: As aggregate demand increases, the higher demand can lead to higher prices if the economy is near or at full
capacity. This is known as demand-pull inflation. The aggregate demand curve shifts to the right, leading to a higher equilibrium price
level.

 Inflation Expectations: If the deficit is perceived as leading to higher future inflation, it can lead to increased inflation expectations,
which can further push up the price level.

Impact on Unemployment Rate

Decrease in Unemployment Rate:

 Increased Economic Activity: Higher aggregate demand can lead to increased production, which typically requires more workers.
This can reduce the unemployment rate in the short run.
 Stimulus Effect: The deficit acts as a stimulus to the economy, increasing demand for labor and reducing cyclical unemployment.

Short-Term vs. Long-Term Effects

Short-Term:

 GDP: Likely to increase due to higher aggregate demand.

 Price Level: Likely to increase due to demand-pull inflation.

 Unemployment Rate: Likely to decrease as increased economic activity boosts labor demand.

Long-Term:

 Crowding Out: If the deficit leads to higher interest rates (due to increased government borrowing), it might crowd out private
investment. This could potentially dampen long-term growth.

 Debt Sustainability: Persistent deficits can lead to higher public debt, which may require future adjustments such as higher taxes or
reduced government spending, potentially affecting long-term economic performance.

 Supply-Side Effects: If deficit spending is directed towards productive investments (e.g., infrastructure, education), it can enhance
the economy's productive capacity, potentially improving long-term growth prospects.

TF thì đề t

câu 1 có tính hệ số cung tiền r tính cung tiền xem có đúng k (Money multiplier) 1/r, where r = the reserve ratio

While cleaning his apartment, Hakeem finds a $50 bill under the couch. He deposits the bill in his checking account at Chase Bank.
The reserve ratio is 10% of deposits.

A. What is the maximum amount that the money supply could increase?

B. What if R = 5%? What is the maximum amount that the money supply could increase?

• If banks hold 10% in reserve, then money multiplier = 1/R = 1/0.1 = 10

Maximum possible increase in deposits is 10 × $50 = $500

But money supply also includes currency, which falls by $50

Hence, maximum increase in money supply = $450

• Money multiplier increases to 1/0.5 = 20

A. If banks hold 5% in reserve, the max increase in money supply is

B. New deposits − Currency = 20 × $50 − $50 = $950

Câu 2 là mutual fund có tính vào I k (không)

Because investment in GDP means purchases of goods (such as business capital, residential structures, and inventories) that will be
used to produce other goods and services in the future.
 Mutual fund like bond and stock are financial assets, which represents a transfer of ownership rather than a direct investment in goods
and services.

Câu 3 là Giỏ hàng Gdp thay đổi theo tg còn CPI thì k

GDP Deflator: The basket of goods and services in the GDP deflator changes over time because it reflects the prices of all
domestically produced goods and services within a given period.

CPI: The basket of goods and services in the CPI is fixed for a certain period and is designed to represent the typical consumption
patterns of households.

True/False

- câu 1 là constant reduction on scale input tăng nma đầu ra ko tăng (false)

constant returns to scale: the property whereby long-run average total cost stays the same as the quantity of output changes. when an
input increase, such as labor and capital, proportionally increases output.

- câu 2 AD-AS ko khó về misperception theory (false)

• Theories that explain why the AS curve slopes upward in short-run

• Changes in the overall price level

• Can temporarily mislead suppliers

• About changes in individual markets

• Changes in relative prices

• Suppliers respond to changes in level of prices

• Change in quantity supplied of goods and services

- câu 3 tính ir có thuế hqua m hỏi t công thức đấy

Real in= nominal rate -iflation rate

B1: tìm aftertax nominal ir= i – i*tax,

Tự luận

- Xoay quanh tính GDP (cho bảng và điền) và growth rate

• The Rule of 70: if a variable increase by x percent over a term then it will double in 70/x terms.

• If GDP growth rate of a country is 1%, it need 70 years to double to 2%