AB 204 Course Great Wisdom / tutorialrank.com AB 204 Course Great Wisdom / tutorialrank.com | Page 10

2. Explain how each of the following changes quantity of money
(money supply) in the economy.

3. Assume that in a country the total holdings of banks were as
follows:
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AB 204 Unit 8 Assignment
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1. Long-run Macroeconomic Equilibrium and Stock Market
Boom

Let us assume the economy reaches its long-run macroeconomic
equilibrium in 2020. When the economy is in the long run
macroeconomic equilibrium, the stock market will also reach its
boom. This will in turn lead to increases in stock prices more
than expected, and the stock prices will stay high for some
period.

2) Studies indicate that net exports and net capital outflows tend
to be equal.