![31.1 the short-run phillips curve](http://s1.studyres.com/store/data/002174082_1-c4e9e692dd8fc6207e313575e84f0311-300x300.png)
31.1 the short-run phillips curve
... percentage as the increase in the equilibrium price level, to keep the real wage rate at it full-employment level. As the price level rises, real GDP remains at potential GDP. Figure 31.4 on the next slide illustrates this long-run adjustment using the AS-AD model. ...
... percentage as the increase in the equilibrium price level, to keep the real wage rate at it full-employment level. As the price level rises, real GDP remains at potential GDP. Figure 31.4 on the next slide illustrates this long-run adjustment using the AS-AD model. ...
Why the study of economics is divided into two parts like
... months’ ‘Dividends in 6 months’, ‘Holding period return’ and ‘Yearly return’ variables to this sheet. Give any value to the ‘First Investment’ , ‘Portfolio value after six months’ and ‘Dividends in 6 months’ variables. Evaluate ‘Holding period return’ and ‘yearly return’ as an excel formula. 30. Wha ...
... months’ ‘Dividends in 6 months’, ‘Holding period return’ and ‘Yearly return’ variables to this sheet. Give any value to the ‘First Investment’ , ‘Portfolio value after six months’ and ‘Dividends in 6 months’ variables. Evaluate ‘Holding period return’ and ‘yearly return’ as an excel formula. 30. Wha ...
Equilibrium and Efficiency
... functions. If xhi (p1 , p2 ) is the level of demand at prices p1 and p2 , then it must be that case that xhi (p1 , p2 ) = xhi (λp1 , λp2 ) , for λ > 0. A demand function having this property is said to be homogenous of degree 0. In terms of what can be learnt from the model, the homogeneity shows th ...
... functions. If xhi (p1 , p2 ) is the level of demand at prices p1 and p2 , then it must be that case that xhi (p1 , p2 ) = xhi (λp1 , λp2 ) , for λ > 0. A demand function having this property is said to be homogenous of degree 0. In terms of what can be learnt from the model, the homogeneity shows th ...
Chapter 19 Output and Inflation in the Short Run: Aggregate Supply
... its natural rate, the corresponding ’natural’ level of output may fluctuate due to short-run fluctuations in labour productivity. Second, output will tend to fluctuate around its trend to the extent that unemployment fluctuates around its natural rate. In the previous chapter we found that the rate ...
... its natural rate, the corresponding ’natural’ level of output may fluctuate due to short-run fluctuations in labour productivity. Second, output will tend to fluctuate around its trend to the extent that unemployment fluctuates around its natural rate. In the previous chapter we found that the rate ...
Richard H. Clarida
... (1987) indicates that the degree of capital mobility among the major OECD countries may be quite high (although see Feldstein and Bacchetta (1991) for contrary evidence). In Section 2 of this paper, we present a neoclassical model of optimal economic growth in a world of perfect international capita ...
... (1987) indicates that the degree of capital mobility among the major OECD countries may be quite high (although see Feldstein and Bacchetta (1991) for contrary evidence). In Section 2 of this paper, we present a neoclassical model of optimal economic growth in a world of perfect international capita ...
Estimating equilibrium exchange rate - FEER vs BEER -
... In 2001-2004 the degree of the RER_EUR undervaluation was in average with 2,45 percentage points lower then that associated with REER In 2005-2008 the overvaluation of RER_EUR was in average with 0,9 percentage points higher than in the case REER. ...
... In 2001-2004 the degree of the RER_EUR undervaluation was in average with 2,45 percentage points lower then that associated with REER In 2005-2008 the overvaluation of RER_EUR was in average with 0,9 percentage points higher than in the case REER. ...
Productivity Performance and
... the one hand, and long average hours worked by full-time employees on the other, such a measure would be more accurate in gauging worker efficiency. In order to account for the productivity of capital we need to consider the growth in total factor productivity (TFP). This measures output relative t ...
... the one hand, and long average hours worked by full-time employees on the other, such a measure would be more accurate in gauging worker efficiency. In order to account for the productivity of capital we need to consider the growth in total factor productivity (TFP). This measures output relative t ...
- SlideBoom
... A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this info ...
... A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this info ...
Note on growth and growth accounting
... US GDP in the year 2000 was bill. and it was bill. in the year 1999 (both measured in 1995 prices). Hence the US economy grew by 4.2% between 1999 and 2000. Once we move beyond growth rates over very short periods, it is necessary to calculate the socalled compound growth rate. Economists interested ...
... US GDP in the year 2000 was bill. and it was bill. in the year 1999 (both measured in 1995 prices). Hence the US economy grew by 4.2% between 1999 and 2000. Once we move beyond growth rates over very short periods, it is necessary to calculate the socalled compound growth rate. Economists interested ...
Sectoral Analysis
... When there is no capital mobility, such as in a closed economy or autarky economy, fiscal and monetary policies work in the way that we have studies so far as long as the external economic policy as regards foreign exchange rates is the flexible foreign exchange rate system. In fact it does not have ...
... When there is no capital mobility, such as in a closed economy or autarky economy, fiscal and monetary policies work in the way that we have studies so far as long as the external economic policy as regards foreign exchange rates is the flexible foreign exchange rate system. In fact it does not have ...
Measuring inclusive wealth at the state level in the United States
... However, it turns out that these two measures are the same only if the economy is following an optimal growth path.1 If the economy is not on an optimal growth path, then an income-based measure like GDP could lead to qualitatively different conclusions about economic growth than a direct measure of ...
... However, it turns out that these two measures are the same only if the economy is following an optimal growth path.1 If the economy is not on an optimal growth path, then an income-based measure like GDP could lead to qualitatively different conclusions about economic growth than a direct measure of ...
The role of the natural rate of interest in monetary policy
... consistent with equilibrium. Second is that the natural rate is a characteristic of the economy in the long run. Third is the assumption that, in general, the natural rate would not be fixed at a given value, but instead would fluctuate mainly according to changes in technology that affect the produ ...
... consistent with equilibrium. Second is that the natural rate is a characteristic of the economy in the long run. Third is the assumption that, in general, the natural rate would not be fixed at a given value, but instead would fluctuate mainly according to changes in technology that affect the produ ...
PRICES, THE CPI, AND INFLATION
... rates that banks charged in 1980 as scandalously high while they saw the 7% mortgage rates of 1998 as a great bargain. – In truth, however, the real interest rate in 1998 (about 5%) was well above the bargain-basement real rates in 1980 (about 2%). ...
... rates that banks charged in 1980 as scandalously high while they saw the 7% mortgage rates of 1998 as a great bargain. – In truth, however, the real interest rate in 1998 (about 5%) was well above the bargain-basement real rates in 1980 (about 2%). ...
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... equation (9) implies P3= .126 per year, which corresponds to a halflife for the log of output per effective worker of 5.5 years. For ax = .80, which might apply if capital is interpreted broadly to include human capital, the value P3= .026 per year implies a half-life of 27 years. As at approaches u ...
... equation (9) implies P3= .126 per year, which corresponds to a halflife for the log of output per effective worker of 5.5 years. For ax = .80, which might apply if capital is interpreted broadly to include human capital, the value P3= .026 per year implies a half-life of 27 years. As at approaches u ...
Convergence The Harvard community has made this article openly
... equation (9) implies P3= .126 per year, which corresponds to a halflife for the log of output per effective worker of 5.5 years. For ax = .80, which might apply if capital is interpreted broadly to include human capital, the value P3= .026 per year implies a half-life of 27 years. As at approaches u ...
... equation (9) implies P3= .126 per year, which corresponds to a halflife for the log of output per effective worker of 5.5 years. For ax = .80, which might apply if capital is interpreted broadly to include human capital, the value P3= .026 per year implies a half-life of 27 years. As at approaches u ...
Notes on Investment, Fall 2014
... them when solving for their optimal investment policy.5 But if we follow the logic to its end, it means that the model cannot be used to tell us really about the real world where (a) business cycle fluctuations are not that infrequent and (b) are not necessarily that small. Nevertheless, these ‘pha ...
... them when solving for their optimal investment policy.5 But if we follow the logic to its end, it means that the model cannot be used to tell us really about the real world where (a) business cycle fluctuations are not that infrequent and (b) are not necessarily that small. Nevertheless, these ‘pha ...
Growth Effects of 1992 - Graduate Institute of International and
... industrial structure that actually exists. Obviously in this unadulterated form, the assumption does not pass the laugh-test, much less any sort of econometric test. Nevertheless, rejecting firm-level constant returns does not let us reject the traditional model. What the model actually requires is ...
... industrial structure that actually exists. Obviously in this unadulterated form, the assumption does not pass the laugh-test, much less any sort of econometric test. Nevertheless, rejecting firm-level constant returns does not let us reject the traditional model. What the model actually requires is ...