Review: Short and Long Run Compared
... What are the effects of an increase in the The price level rises, along with other money supply nominal variables, but all real variables remain unchanged. ...
... What are the effects of an increase in the The price level rises, along with other money supply nominal variables, but all real variables remain unchanged. ...
Bolivia_en.pdf
... and of the companies Empresa Metalúrgica Vinto and Huanuni were nationalized and thus incorporated into the public sector. If the effect of these nationalizations in the public accounts is discounted, the variation in total expenditure amounts to just 0.8% of GDP. In order to analyse the fiscal posi ...
... and of the companies Empresa Metalúrgica Vinto and Huanuni were nationalized and thus incorporated into the public sector. If the effect of these nationalizations in the public accounts is discounted, the variation in total expenditure amounts to just 0.8% of GDP. In order to analyse the fiscal posi ...
Macroeconomic Theory
... The rise in the total loans reflects increased savings that comes from reduced consumption. If savings are unresponsive to changes in the real interest rate (substitution effects = income effects), then the LFS curve will be vertical, and only investment will be crowded out. 2. In a Neoclassical mod ...
... The rise in the total loans reflects increased savings that comes from reduced consumption. If savings are unresponsive to changes in the real interest rate (substitution effects = income effects), then the LFS curve will be vertical, and only investment will be crowded out. 2. In a Neoclassical mod ...
Master Entrance Exam
... typically lasts for 20 years, and the marginal product of capital is 9 percent of the value of each unit of capital. ______ (above, below, or at the Golden Rule steady state) 5. During the global economic downturn, the use of oil went down and the oil prices plummeted. Starting from long-run equilib ...
... typically lasts for 20 years, and the marginal product of capital is 9 percent of the value of each unit of capital. ______ (above, below, or at the Golden Rule steady state) 5. During the global economic downturn, the use of oil went down and the oil prices plummeted. Starting from long-run equilib ...
Homework 3
... 2. Assume that the demand for M1 in Hong Kong was given by the equation PQ . Hong Kong’s central bank, the Hong Kong monetary M 1D 2 100i authority operates a fixed exchange rate. This implies that the interest rate in Hong Kong will be determined by the US interest rate denoted i*. Thus, a credib ...
... 2. Assume that the demand for M1 in Hong Kong was given by the equation PQ . Hong Kong’s central bank, the Hong Kong monetary M 1D 2 100i authority operates a fixed exchange rate. This implies that the interest rate in Hong Kong will be determined by the US interest rate denoted i*. Thus, a credib ...
Introduction
... Exchange Rate Responses • Short-run wage stickiness causes the aggregate price level to adjust less completely to changes in aggregate demand than it would otherwise. • This has an important consequence for the response of the exchange rate to policy actions that affect aggregate demand. • Exchange ...
... Exchange Rate Responses • Short-run wage stickiness causes the aggregate price level to adjust less completely to changes in aggregate demand than it would otherwise. • This has an important consequence for the response of the exchange rate to policy actions that affect aggregate demand. • Exchange ...
Macroeconomics * Problem Set 1
... On conclusion, one of the advantages of the logarithms is to make the trend linear, making it easier to identify the economic cycles. b) This rule is known as the rule of 70, which is in a few words, used with an annual compound interest rate to quickly determine how long it would take to double you ...
... On conclusion, one of the advantages of the logarithms is to make the trend linear, making it easier to identify the economic cycles. b) This rule is known as the rule of 70, which is in a few words, used with an annual compound interest rate to quickly determine how long it would take to double you ...
Drop
... output through the use of supply-side policies. To achieve its objective, the government would most likely increase its spending on ...
... output through the use of supply-side policies. To achieve its objective, the government would most likely increase its spending on ...
Suozzo
... Fixed Costs: costs that remain constant despite level of production Variable Costs: costs varying directly with production Efficiency:being able to complete the same task with less resources Marginal Cost: cost brought about by another unit of production Long Run: frame of time in which all resource ...
... Fixed Costs: costs that remain constant despite level of production Variable Costs: costs varying directly with production Efficiency:being able to complete the same task with less resources Marginal Cost: cost brought about by another unit of production Long Run: frame of time in which all resource ...
Growth effects of economic integration
... effect (CEECs to have the same risk premium as Portugal): GDP gain +19% in CEECs and +0.2% in the EU15 ...
... effect (CEECs to have the same risk premium as Portugal): GDP gain +19% in CEECs and +0.2% in the EU15 ...
Problem 1. Assume that the price level is set as a weighted average
... sector (T) and non-tradable sector (NT): where α is between 0 and 1. Suppose that purchasing power parity holds, but for tradable goods only. To simplify the analysis, normalize the foreign prices to 1 P* = 1. Assuming ceteris paribus, what is the impact on the nominal and real exchange rate of the ...
... sector (T) and non-tradable sector (NT): where α is between 0 and 1. Suppose that purchasing power parity holds, but for tradable goods only. To simplify the analysis, normalize the foreign prices to 1 P* = 1. Assuming ceteris paribus, what is the impact on the nominal and real exchange rate of the ...
Chile_en.pdf
... while favourable for several of the country’s exports, were reflected in increasing costs for a number of goods which affected prices on the domestic market: fuels, wheat, maize and milk. This was accentuated by a hard winter, the worst in many years, which had a strong negative impact on the supply ...
... while favourable for several of the country’s exports, were reflected in increasing costs for a number of goods which affected prices on the domestic market: fuels, wheat, maize and milk. This was accentuated by a hard winter, the worst in many years, which had a strong negative impact on the supply ...
The Closed Economy - Economics Network
... interest rate that returns the model to equilibrium. Y > C + I(r) + G => interest rate decreases => I increases until Y = C + I(r) + G. Y < C + I(r) + G => interest rate increases => I decreases until Y = C + I(r) + G. ...
... interest rate that returns the model to equilibrium. Y > C + I(r) + G => interest rate decreases => I increases until Y = C + I(r) + G. Y < C + I(r) + G => interest rate increases => I decreases until Y = C + I(r) + G. ...
Economic Misery and Presidential Elections
... rate been the highest? 3. 3. What year had the highest inflation rate? 4. What year had the highest Misery Index? ...
... rate been the highest? 3. 3. What year had the highest inflation rate? 4. What year had the highest Misery Index? ...