Study Guide Exam 3

Chapter 16 - Monetary System

What is money
Money supply - basics
Functions of the fed
Objectives of the fed
Monetary policy tools
The fed and the money supply
Banks and the money supply
The money multiplier
Monetary policy tools – mechanisms
Open-market operations

Chapter 17 - Money Growth and Inflation

Money and inflation
Classical dichotomy
Neutrality of money
Quantity theory of money
The velocity of money
Hyperinflation

Chapter 20 - Aggregate Demand and Aggregate Supply

The Model of Aggregate Demand and Aggregate Supply
Aggregate Demand Slope (Effects)
Aggregate Demand Shifters
Aggregate Supply Slope (Sticky Stuff + Misperceptions)
Aggregate Supply Shifters
Shocks
Long-run Aggregate Supply
Long-run Aggregate Supply Shifts
Economic Fluctuations

Chapter 21 – Fiscal and Monetary Policy

Liquidity Preference Theory
Money Demand
Monetary Policy and Aggregate Demand
Fiscal Policy and Aggregate Demand
Marginal Propensity to Consume
Multiplier Effect