AP ECON Questions:

#1

Hi guys, hopefully I stuck this post in the right spot. I have about 50 questions I need answered and for any of you with knowledge on economics, help would be really appreciated. Feel free to debate or do whatever you want with this questions as I am going to use them for my fed challenge. Thanks!

50) What is the Humphrey-Hawkins Act and Humphrey-Hawkins Testimony? (2)

51) What were the ¢¢¬…œGreenspan Reconfirmation Hearings¢¢¬‚ about? (1)

52) What is the Free Trade/Protectionism debate about? (1)

53) What is the difference between B-to-C and B-to-B e-Commerce? (1) Which is more important now and which will be more important in the next few years (according to experts)? (1) Why? (1)

54) What is the Fed Stock Valuation Model? (2) What does it say right now? (1)

55) What is a ¢¢¬…œMarket Correction¢¢¬‚? (1) What percent do stocks have to fall to qualify? (1)

56) What is the ¢¢¬…œWealth Effect¢¢¬‚? (2)

57) How is the Wealth Effect helping fuel the ¢¢¬…œNew Economy¢¢¬‚? (2)

58) What is ¢¢¬…œGradualism¢¢¬‚ (Incrementalism) as applied to the Fed (or Greenspan)? (1)

59) What is the difference between ¢¢¬…œBenefits Costs¢¢¬‚ vs. ¢¢¬…œWage Costs¢¢¬‚? (1)

60) What is the difference between ¢¢¬…œPrice Inflation¢¢¬‚ vs. ¢¢¬…œWage Inflation¢¢¬‚? (1)

61) What has been the impact of NAFTA & GATT (Now WTO) on our economy in the past two years? (2)

62) What is the EEC (Formerly Common Market)? (1)

63) What is an ¢¢¬…œAdjustable Rate Mortgage¢¢¬‚ (ARM)? (1)

64) What is a ¢¢¬…œConventional Mortgage¢¢¬‚ and what do the terms 15year, and 30 year refer to? (2)

65) What are the ¢¢¬…œSuper Bowl/Hemline/January¢¢¬‚ Effects? (1)

66) On the fiscal policy side, how would the passage of a federal balanced budget measure affect the Fed's monetary policy decisions? Do you think balancing the federal budget is an important goal? (2)

67) What is the impact of the nation's trade deficit on U.S. growth prospects? (1)

68) What did you learn from participating in the Fed Challenge? (2)

69) What is the primary goal of monetary policy? (1) What do you think the goal(s) should be? (2)

70) Why do some economists question the validity of the Phillips Curve? (1) Is there any justification to question its validity? (1)

71) Are you worried about recent gas price movements? (1)

72) Explain the concept of Core CPI and why it is important. (1)

73) Should all FOMC (Federal Open Market Committee) members be appointed by the U.S. President and confirmed by the U.S. Senate? (1)

74) The most recent rate hike resulted in letters of protest from several members of Congress. How would you respond to criticism that the Fed is not considering the consequences of unemployment which may arise from rate hikes? (1)

75) How much weight should be given to foreign markets when making an FOMC decision? (2)

76) What is the ¢¢¬…œOutside Lag Time¢¢¬‚ of monetary policy (in Months)? (1)

77) How does the FOMC control the FFR if it does not have the power to set the rate itself? (2)

78) What is the natural rate of unemployment? How do you determine it? (1)

79) Why could a strong dollar be a bad thing? (1)

80) Why will a low unemployment rate cause inflation? (1)

81) What problems would an increase in the money supply cause? (1)

82) What is the Fed¢¢¬¢ž¢s target rate for M2 growth? (1)

83) If M2 is growing faster than the target rate, why don¢¢¬¢ž¢t we have inflation now? (1)

84) Why hasn¢¢¬¢ž¢t the weakness in the manufacturing sector hurt the economy? (1)

85) What is the problem with the savings rate being so low? (1)

86) How can people save negative %ages of their income? (1)

87) Can the Fed control the money supply? (1)

88) How can consumer confidence cause problems? (1)

89) What effect does productivity have on the economy? (1)

90) Why is the housing market so important to look at as an indicator? (1)

91) What is deflation? How can lower prices be bad? (2)

92) Why so much concern over energy (oil) prices? (2)

93) Should you or shouldn¢¢¬¢ž¢t you change rates on a forecast, either of inflation or rising unemployment? (2)

94) Should we use mostly Monthly/Quarterly data in the presentation instead of yearly ¢¢¬¢‚¬Å“ Why? (2)

95) Who makes up the FOMC? (1)

96) Is the Fed a Gov¢¢¬¢ž¢t Agency or a Private Agency? (2)

97) What are 3 monetary policies that the Fed can use to control the economy? (2)

98) What is the difference between easy and tight money? (Tightening/loosening?) (Expanding/contraction?) (Expansionary/contractionary?) (2)

99) What is the concept of ¢¢¬…œCyclical Asymmetry¢¢¬‚? (1)

100) What are the differences between Keynesians, Monetarists, RET¢¢¬¢ž¢s, and Classicalists? What are the big names in each theory? (3)