Explain how inflation affects consumption in a cash in


Shorter answers

1. A stationary state in a money model with inflation

2. cash in advance constraint

3. seigniorage

4. how does seigniorage work in the real world

5. Active population

6. underemployed

7. labor force

8. unemployment rate

9. regularities of unemployment (what the data says)

10. rate of job destruction

11. natural rate of unemployment (and the stationary state)

12. reservtion wage

13. wage for not working

Longer answers

1. Explain how inflation (via transfers) works in a cash in advance model

2. Explain how inflation affects consumption in a cash in advance model (with transfers). What causes this to happen.

3. Explain how a government collects revenue via seigniorage.

4. Explain how to Önd a stationary state equilibrium in a model with seignior- age.

5. How does the elasticity of demand for consumption matter in determining seigniorage.

6. Explain the circle model of job creation and destruction (and a stationary state in this model)

7. Explain the dynamics around the natural rate of unemployment.

8. Explain how a reservation wage is determined in a job search model.

9. Explain why richer people frequently end up with higher wages than poorer people using a job search model.

10. Explain why unemployment is higher in Europe than in the United States using a job search model. Relate this result to the fact that unemployment compensation is higher and lasts longer in Europe than in the United States.

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Microeconomics: Explain how inflation affects consumption in a cash in
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