The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is

Keynes’s model of the demand for money suggests that velocity is ________ related to ________.

[25 points] a. Use the Lagrange method to interpolate the following data: b. If you add a data point as follows: use your answer in part a to nd the new polynomial which interpolate all data.  

[25 points] You are given the following system of linear equations: Where C and D are unknowns. What is the approximate solution for this system using the least-squares method?  

The long-run rate of unemployment to which an economy always gravitates is the

*************************Optional Problem [25 points] *************************   Find   where using eigenvalue decomposition of A.    

If aggregate demand equals output,

The quantity theory of inflation indicates that if the aggregate output is growing at 3% per year and the growth rate of money is 5%, then inflation is

[25 Points] Consider the following nonlinear system of equations: Use two iterations of Newton’s method to approximate a solution of this system with the initial guess (x0 , y0)T = (1, 1).