Production and Growth
... As the stock of capital rises, the extra output produced from an additional unit of capital falls; this property is called diminishing returns. Because of diminishing returns, an increase in the saving rate leads to higher growth only for a while. In the long run, the higher saving rate leads to a h ...
... As the stock of capital rises, the extra output produced from an additional unit of capital falls; this property is called diminishing returns. Because of diminishing returns, an increase in the saving rate leads to higher growth only for a while. In the long run, the higher saving rate leads to a h ...
Some thoughts on unemployment
... less they invest in physical capital.” The book also serves as an important reminder that it is new capital investment, consumer and government spending, net exports, and, most of all, rising wages that create the demand necessary to maintain full employment. Fundamental to Keynes is the idea that i ...
... less they invest in physical capital.” The book also serves as an important reminder that it is new capital investment, consumer and government spending, net exports, and, most of all, rising wages that create the demand necessary to maintain full employment. Fundamental to Keynes is the idea that i ...
Rules, Tables, and Graphs
... • Example: Speed/pace – A speed tells how many units of distance there are for a given unit of time – 60 miles per hour is a rate that says a distance of 60 miles is traveled for each hour of time ...
... • Example: Speed/pace – A speed tells how many units of distance there are for a given unit of time – 60 miles per hour is a rate that says a distance of 60 miles is traveled for each hour of time ...
ECNS 251 Spring 2013 Homework 9 Answer Key 1. The labor force
... Thus M × V will rise 15%, causing P × Y to rise 15%, with a 10% increase in prices and a 5% rise in real GDP. 7. With constant velocity, reducing the inflation rate to zero would require the money growth rate to equal the growth rate of output, according to the quantity theory of money ( M × V = ...
... Thus M × V will rise 15%, causing P × Y to rise 15%, with a 10% increase in prices and a 5% rise in real GDP. 7. With constant velocity, reducing the inflation rate to zero would require the money growth rate to equal the growth rate of output, according to the quantity theory of money ( M × V = ...
Sample quiz 5
... Decrease equilibrium income by T Decrease equilibrium income by T /(1 MPC ) Decrease equilibrium income by (T )( MPC ) /(1 MPC ) Not affect equilibrium income at all ...
... Decrease equilibrium income by T Decrease equilibrium income by T /(1 MPC ) Decrease equilibrium income by (T )( MPC ) /(1 MPC ) Not affect equilibrium income at all ...
Foundations Exam 2, Winter 2013
... 2a. Suppose a monopoly exists in the bookstore of a small college. Use a clearly labeled graph to show the profit maximizing level of output the monopolist would produce. Show the price the firm would charge and the area of profit. (10 points) ...
... 2a. Suppose a monopoly exists in the bookstore of a small college. Use a clearly labeled graph to show the profit maximizing level of output the monopolist would produce. Show the price the firm would charge and the area of profit. (10 points) ...
ECON 2301 TEST 2 Study Guide Spring 2016 Instructions: 40
... a. creditors receive a lower real interest rate than they had anticipated. b. creditors pay a lower real interest rate than they had anticipated. c. debtors receive a higher real interest rate than they had anticipated. d. debtors pay a higher real interest rate than they had anticipated. ____ 15. W ...
... a. creditors receive a lower real interest rate than they had anticipated. b. creditors pay a lower real interest rate than they had anticipated. c. debtors receive a higher real interest rate than they had anticipated. d. debtors pay a higher real interest rate than they had anticipated. ____ 15. W ...
Classical – Neoclassical Economics
... rate of interest is to be raised; and if prices fall, the rate of interest is to be lowered; and the rate interest is henceforth to be maintained at its new level until a further movement of prices calls for a further change in one direction or another. Wicksell, Interest and Prices, p. 189 quoted i ...
... rate of interest is to be raised; and if prices fall, the rate of interest is to be lowered; and the rate interest is henceforth to be maintained at its new level until a further movement of prices calls for a further change in one direction or another. Wicksell, Interest and Prices, p. 189 quoted i ...
Accelerated Macro Spring 2015 Solutions to HW #1 1 GDP, TFP
... What happens to the real interest rate and investment after an increase in the government budget defcit for a closed economy? Solution: As a result of the rise in the budget deficit, national saving decreases (public saving falls while private saving remains unchanged). Consequently, the equilibrium ...
... What happens to the real interest rate and investment after an increase in the government budget defcit for a closed economy? Solution: As a result of the rise in the budget deficit, national saving decreases (public saving falls while private saving remains unchanged). Consequently, the equilibrium ...
The Flexible Price Benchmark
... NEW KEYNESIAN MACROECONOMICS Why monopolistic competition? To model price pre setting one must allow for endogenous goods supply. This requires not assuming endowments of goods. The determinants of the cost of supplying goods are important because the supply costs are a prime determinant of the opti ...
... NEW KEYNESIAN MACROECONOMICS Why monopolistic competition? To model price pre setting one must allow for endogenous goods supply. This requires not assuming endowments of goods. The determinants of the cost of supplying goods are important because the supply costs are a prime determinant of the opti ...
總體1/2003 第二次考試班級: 學號: 姓名:
... a. Economic forecasting is highly imprecise. b. Long lags may cause stabilization policies to in fact destabilize the economy. c. Monetary policy affects aggregate demand by changing interest rates. d. Fiscal policy must go through a long political process. Ch 29 13. If the Fed conducts open-market ...
... a. Economic forecasting is highly imprecise. b. Long lags may cause stabilization policies to in fact destabilize the economy. c. Monetary policy affects aggregate demand by changing interest rates. d. Fiscal policy must go through a long political process. Ch 29 13. If the Fed conducts open-market ...
LEC2
... affect economic growth as the strength of institutions (which facilitate economic growth). it does not explain how or why technological ...
... affect economic growth as the strength of institutions (which facilitate economic growth). it does not explain how or why technological ...
Economics 202.04 Macroeconomic Theory
... True, False or Uncertain? Please answer any four of the following six questions and provide a brief explanation (e.g., three lines of text plus a small diagram maximum). A correct answer without an explanation will not earn you any marks. ...
... True, False or Uncertain? Please answer any four of the following six questions and provide a brief explanation (e.g., three lines of text plus a small diagram maximum). A correct answer without an explanation will not earn you any marks. ...
Economic Activity
... Investment Activities The money used for capital projects comes from three main sources: • Personal savings - Businesses use money deposited in personal saving accounts to buy equipment or products for their businesses. Savers earn interest on money used by companies and other individuals. • The ...
... Investment Activities The money used for capital projects comes from three main sources: • Personal savings - Businesses use money deposited in personal saving accounts to buy equipment or products for their businesses. Savers earn interest on money used by companies and other individuals. • The ...
Chapter 20 Economic Growth and Rising Living Standards
... If the economy produces at point J in year 1, the PPF will shift outward to a position like PPFJ. If the economy produces at point H in year 1, the PPF will still shift outward, to PPFH—a smaller shift than the one to PPFJ. The PPF still shifts outward because both the population (the labor force) a ...
... If the economy produces at point J in year 1, the PPF will shift outward to a position like PPFJ. If the economy produces at point H in year 1, the PPF will still shift outward, to PPFH—a smaller shift than the one to PPFJ. The PPF still shifts outward because both the population (the labor force) a ...
HW #2
... Part B (13 points) (1) [4 points] Neoclassical Theory of Income Distribution Use the neoclassical theory of distribution to predict the impact on the real wage (w) and real rental price of capital (r) of each of the following events (a) [2 points] A wave of immigration increases the labor force Acco ...
... Part B (13 points) (1) [4 points] Neoclassical Theory of Income Distribution Use the neoclassical theory of distribution to predict the impact on the real wage (w) and real rental price of capital (r) of each of the following events (a) [2 points] A wave of immigration increases the labor force Acco ...
1 - BrainMass
... inflation to 0.12 (the natural unemployment rate is unaffected). Graph the new Phillips curve and compare it to the curve you drew in part (a). What happens to the unemployment rate if the Fed holds actual inflation at 0.10? What happens to the Phillips curve and the unemployment rate if the Fed ann ...
... inflation to 0.12 (the natural unemployment rate is unaffected). Graph the new Phillips curve and compare it to the curve you drew in part (a). What happens to the unemployment rate if the Fed holds actual inflation at 0.10? What happens to the Phillips curve and the unemployment rate if the Fed ann ...