Author Archives: bust20

This is the last chapter in the course.  I hope you have enjoyed the course and are saddened to see it end.  What concepts or theories did you find most interesting and/or useful?  Is there an area where you changed your thinking? One major takeaway I got from this course is that there are onlyContinue reading “Chapter 23 Reflection”

Describe the short run trade-off between inflation and unemployment.  Why is there not a long-run trade-off?  How long do you think the short-run lasts? (Or do you believe there is a trade-off at all – many economists don’t.  Why? When we try to decrease levels of inflation, the Fed slows the rate at which theContinue reading “Chapter 22 Reflection”

1.How does consumer confidence interact with public policies when in a recession?  How about in a boom?  Does it make policies more effective or less effective in achieving economic stability? Why? Public policies usually predicts consumer confidence to be high, but during a recession, consumer confidence is just the opposite. when the economy is inContinue reading “Chapter 21 Reflection”

1.This chapter is all about short term fluctuations in the economy – recessions and booms.  After reading the chapter what do you think about the current US (or Colorado) economy? Is a recession coming soon? Is the economy in danger of overheating? The current U.S. economy is doing really good for our current situation, thatContinue reading “Chapter 20 Reflection”

Pretend for  moment you are teaching this class and you need to write questions for an exam covering this chapter.  Write three short answer questions and give 2 answers for each — an adequate response and a very good response.  You questions should cover highlights from the chapter.  Don’t choose identification or list questions, requireContinue reading “Chapter 19 Reflection”

Post your 3 favorite margin notes from this chapter.  Why did you highlight and comment on these particular points in the text? (I know some of you don’t take notes as you read – just jot down three things that you found interesting in the chapter and why.) I found it important that in anContinue reading “Chapter 18 Reflection”

1.What are the costs of inflation?  Which is most important?  How about deflation?  Would that be a problem and for whom? The FRB worries more about deflation. Why? Do you agree? Why or why not? Inflation will result in a loss of purchasing power, an increase of shoe-leather cost, and in increase in menu costs.Continue reading “Chapter 17 Reflection”

1.The phrase “printing money” tends to be tossed around in discussions about the money supply.  How important is cash to the overall money supply?  In our system the Federal Reserve Board has at least some control over the money supply.  How are they related to the Federal government? Cash is actually not very important toContinue reading “Chapter 16 Reflection”

1.Why will there always be at least some unemployment?  Give an example of a public policy that affects the unemployment rate.  Is it positive or negative? Why?   The unemployment rate never falls to zero even in a good economy. The unemployment rate often fluctuates at the natural rate of unemployment. There is always goingContinue reading “Chapter 15 Reflection”

1.Have you considered the trade-off between risk and return when making an investment?  Did it change your investment? Do you expect a return premium related to the level of risk?  Measuring the trade-off between risk and return is always of the most importance when investing. I always measure risk and return when making investments, evenContinue reading “Chapter 14 Reflection”