Author Archives: mallorymcohl

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? The theories I found most interesting and useful were the data of macroeconomics,Continue 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? There is a temporary short run trade-off between inflation and unemployment. The Phillips curve suggests thatContinue reading “Chapter 22 Reflection”

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? Consumer confidence is highly intertwined with public policies when in a recession or a boom. Desired spending by households and firms determines the overallContinue reading “Chapter 21 Reflection”

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? Why or why not?  Is the economy in danger of overheating? Why or why not? (This is part of whyContinue 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 enjoyed the Figure 1 graph inContinue reading “Chapter 18 Reflection”

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? The costs of inflation is that it effects the value of the economy’s medium of exchange, when overall price levelContinue reading “Chapter 17 Reflection”

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? In reference to our book, money supplyContinue reading “Chapter 16 Reflection”

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?   There will always be at least some unemployment. There is a difference between a natural rate of unemployment and the deviation from that, cyclical unemployment. Minimum wageContinue reading “Chapter 15 Reflection”

Have you considered the trade-off between risk and return when making an investment?  Did it change your investment? Do you expect a risk premium related to the level of risk? Personally, I have not had much experience with making investments so I have little consideration on the trade-off between risk and return. However, my limitedContinue reading “Chapter 14 Reflection”