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Lecture 4: Productivity, Output, and Unemployment in the Short Run
... 2. Productivity and the Natural Rate of Unemployment (long-run) • Key question: Is the medium to long-run natural rate of unemployment affected by productivity changes? • A naïve argument is that of Technological unemployment—a concept associated with the technocracy movement during the Great Depre ...
... 2. Productivity and the Natural Rate of Unemployment (long-run) • Key question: Is the medium to long-run natural rate of unemployment affected by productivity changes? • A naïve argument is that of Technological unemployment—a concept associated with the technocracy movement during the Great Depre ...
Chapter 8
... of labor demanded. To understand this relationship, consider the hiring decision of an individual firm or employer: To maximize profit, a firm will hire additional hours of labor as long as each additional hour contributes at least as much additional output as it costs the firm to hire that hour of ...
... of labor demanded. To understand this relationship, consider the hiring decision of an individual firm or employer: To maximize profit, a firm will hire additional hours of labor as long as each additional hour contributes at least as much additional output as it costs the firm to hire that hour of ...
Overlapping Families of Infinitely-Lived Agents
... maintains the crucial hypothesis that new cohorts enter the economy over time; it is, therefore, a model of ‘overlapping families of infinitely-lived agents’. This framework is shown below as resulting from the existence of operative intergenerational linkages between some but not all agents, partia ...
... maintains the crucial hypothesis that new cohorts enter the economy over time; it is, therefore, a model of ‘overlapping families of infinitely-lived agents’. This framework is shown below as resulting from the existence of operative intergenerational linkages between some but not all agents, partia ...
PDF
... end, we specify a model for three variables: the rate of unemployment, the real wage and output. The idea is to incorporate short-run fluctuations in output, caused primarily by aggregate demand impulses, in a standard model of the determination of the equilibrium rate of unemployment based on the i ...
... end, we specify a model for three variables: the rate of unemployment, the real wage and output. The idea is to incorporate short-run fluctuations in output, caused primarily by aggregate demand impulses, in a standard model of the determination of the equilibrium rate of unemployment based on the i ...
The Two Triangles: What Did Wicksell and Keynes Know about
... tend to exclude it from their consensus view. We demonstrate the explanatory potential of a synthesis of Wicksellian and Keynesian ideas that differs substantially from the Neoclassical Synthesis, Old and New. The rest of the paper is organized in three parts. Section [2] provides a brief account of ...
... tend to exclude it from their consensus view. We demonstrate the explanatory potential of a synthesis of Wicksellian and Keynesian ideas that differs substantially from the Neoclassical Synthesis, Old and New. The rest of the paper is organized in three parts. Section [2] provides a brief account of ...
2) The misery index in 1980 exceeded 25.
... apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie’s Farms is the only company that grows fresh apricots, while Darryl’s Dried Victuals is the only producer of dried apricots. F ...
... apricots and dried apricots. In this economy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie’s Farms is the only company that grows fresh apricots, while Darryl’s Dried Victuals is the only producer of dried apricots. F ...
A Keynesian Theory of the Long Run—With a Little Help From Marx
... framework was key. The macroeconomics of redistribution was indeed one of the ideas that made Keynes a figure lionized by the social-democratic left and despised by the right. On the left, it seemed like a no-brainer. As long as the economy is operating at less than full employment, income redistrib ...
... framework was key. The macroeconomics of redistribution was indeed one of the ideas that made Keynes a figure lionized by the social-democratic left and despised by the right. On the left, it seemed like a no-brainer. As long as the economy is operating at less than full employment, income redistrib ...
NBER WORKINO PAPER SERIES TESTING DEVIATTONS FROM Joshua Aizenman Working Paper No 1475
... transaction costs of goods arbitrage or high volatility). This is because transaction costs of goods arbitrage will introduce a band within which there is a unitary correlation between the exchange rate and relative prices, whereas outside this band the correlation is smaller (zero in the case of on ...
... transaction costs of goods arbitrage or high volatility). This is because transaction costs of goods arbitrage will introduce a band within which there is a unitary correlation between the exchange rate and relative prices, whereas outside this band the correlation is smaller (zero in the case of on ...
Inflation
... same thing as fall in the value of money. For example, a person would like to buy 5kgs of apple with Rs. 100, at the present rate of inflation, say, zero. Now when the inflation rate is 5%, then the person would require Rs. 105 to buy the same quantity of apples. This is because there is more money ...
... same thing as fall in the value of money. For example, a person would like to buy 5kgs of apple with Rs. 100, at the present rate of inflation, say, zero. Now when the inflation rate is 5%, then the person would require Rs. 105 to buy the same quantity of apples. This is because there is more money ...
Financial Sector: Loanable Funds Market
... that brings together those who want to lend money (savers) and those who want to borrow (firms with investment spending projects). • This hypothetical market is known as the loanable funds market. • The price that is determined in the loanable funds market is the interest rate, denoted by r. ...
... that brings together those who want to lend money (savers) and those who want to borrow (firms with investment spending projects). • This hypothetical market is known as the loanable funds market. • The price that is determined in the loanable funds market is the interest rate, denoted by r. ...
Slide 1
... A government budget deficit also has an indirect effect that offsets the direct effect. The Ricardo-Barro effect is an increase in private saving by an amount equal to the government budget deficit. This effect occurs if households recognize that a government budget deficit must be paid for by highe ...
... A government budget deficit also has an indirect effect that offsets the direct effect. The Ricardo-Barro effect is an increase in private saving by an amount equal to the government budget deficit. This effect occurs if households recognize that a government budget deficit must be paid for by highe ...
Mankiw SM Chap10 correct size:chap10.qxd.qxd
... Equilibrium saving remains unchanged. The national accounts identity tells us that saving equals investment, or S = I. In the Keynesian-cross model, we assumed that desired investment is fixed. This assumption implies that investment is the same in the new equilibrium as it was in the old. We can co ...
... Equilibrium saving remains unchanged. The national accounts identity tells us that saving equals investment, or S = I. In the Keynesian-cross model, we assumed that desired investment is fixed. This assumption implies that investment is the same in the new equilibrium as it was in the old. We can co ...
growth rates
... – Fundamental growth rates. The third and soundest way of estimating growth is to base it on a firm’s fundamentals. Let’s first classify growth patterns into three categories: • Firms that are in stable growth already • Firms that expect to maintain a constant high growth rate for a period and then ...
... – Fundamental growth rates. The third and soundest way of estimating growth is to base it on a firm’s fundamentals. Let’s first classify growth patterns into three categories: • Firms that are in stable growth already • Firms that expect to maintain a constant high growth rate for a period and then ...
Mankiw 5e Chapter 4
... Correct. The answer is B. The Fisher equation states that the nominal interest rate is the sum of the real interest rate and inflation. Since the real interest rate is determined by savings and investment, a 1 percent rise in the inflation rate will cause a 1 percent rise in the nominal interest rat ...
... Correct. The answer is B. The Fisher equation states that the nominal interest rate is the sum of the real interest rate and inflation. Since the real interest rate is determined by savings and investment, a 1 percent rise in the inflation rate will cause a 1 percent rise in the nominal interest rat ...
Policies to boost savings via capital markets : Case of Korea
... • Gross term (disposable income – consumption expenditures) • Main channel to provide capital available for investment • Retained earning and depreciation (consumption of fixed capital) • Can be used for future investment, but also for precautionary purpose • Revenue R (i l di contributions (includi ...
... • Gross term (disposable income – consumption expenditures) • Main channel to provide capital available for investment • Retained earning and depreciation (consumption of fixed capital) • Can be used for future investment, but also for precautionary purpose • Revenue R (i l di contributions (includi ...
THE THEORY OF THE GLOBAL “SAVINGS GLUT”
... rate there would be a certain excess (positive or negative) of domestic savings over domestic investment, which would be exactly equal to its current account surplus. If this interest rate-exchange rate configuration actually prevails, then since the current account surplus of this country will nece ...
... rate there would be a certain excess (positive or negative) of domestic savings over domestic investment, which would be exactly equal to its current account surplus. If this interest rate-exchange rate configuration actually prevails, then since the current account surplus of this country will nece ...