13.1 Inflation and monetary policy

Review Activities

The original version of this chapter contained H5P content. You may want to remove or replace this element.

Practice Problems

Problem 13.1.1: Suppose that the Fed decreases the reserve requirement. Show the impact of this policy on the price level and value of money using a dual-vertical axis graph.

Answer: See video for answer.

https://youtu.be/eHOE0tQttBM

External Resources

Khan Academy: Moderate Inflation in a Good Economy

13.2 Types of Inflation

Review Activities

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Practice Problems

No practice problems from this section.

External Resources

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13.3 The Costs of Inflation

Review Activities

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Practice Problems

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13.4 Hyperinflation

Review Activities

The original version of this chapter contained H5P content. You may want to remove or replace this element.

Practice Problems

No practice problems for this section.

External Resources

Khan Academy: When the Functions of Money Breakdown – Hyperinflation

Khan Academy: Hyperinflation

13.5 The Phillips Curve

Review Activities

The original version of this chapter contained H5P content. You may want to remove or replace this element.

Practice Problems

Problem 13.5.1: Suppose that the government engages in an expansionary policy (either fiscal or monetary). Show both the short-run and long-run impacts of this policy on both the aggregate market and the Phillips Curve.

Answer: See video for solution.

https://youtu.be/0gAbFd_6Caw

External Resources

Khan Academy: Phillips Curve

Khan Academy: Changes in the AD-AS Model and the Phillips Curve