Final Exam Review Questions and Answers: Lecture W8 (Aggregate
... Tax multiplier shows the effect of a change in taxes (T) on aggregate demand (AD). The value of tax multiplier is always negative and smaller than government expenditure multiplier. Transfer payment multiplier shows the effect of a change in transfer payment (TP) on aggregate demand (AD). The value ...
... Tax multiplier shows the effect of a change in taxes (T) on aggregate demand (AD). The value of tax multiplier is always negative and smaller than government expenditure multiplier. Transfer payment multiplier shows the effect of a change in transfer payment (TP) on aggregate demand (AD). The value ...
ECONOMIC SECTOR PERFORMANCE AND GROWTH
... the standard of living of a nation’s population associated with sustained growth from a simple, low-income economy to a modern, high-income economy. Its scope includes the process and policies by which a nation improves the economic, political, and social wellbeing of its people. Economic progress i ...
... the standard of living of a nation’s population associated with sustained growth from a simple, low-income economy to a modern, high-income economy. Its scope includes the process and policies by which a nation improves the economic, political, and social wellbeing of its people. Economic progress i ...
Endogenous Technology Adoption and R&D as Sources of Business Cycle Persistence
... While these demand side factors have undoubtedly played a central role, it is unlikely that they alone can account for the extraordinarily sluggish movement of the economy back to the pre-crisis trend. This has led a number of authors to explore the contribution of supply-side factors. Both Hall (20 ...
... While these demand side factors have undoubtedly played a central role, it is unlikely that they alone can account for the extraordinarily sluggish movement of the economy back to the pre-crisis trend. This has led a number of authors to explore the contribution of supply-side factors. Both Hall (20 ...
Ch30 - OCCC.edu
... So change in inventories = GDP – AE. If it is (+) then inventories are increasing. If it is a (-) value then inventories are decreasing. If the economy were at a point above the equilibrium level of spending and GDP, then we would have a point where spending was insufficient for that level of GDP. T ...
... So change in inventories = GDP – AE. If it is (+) then inventories are increasing. If it is a (-) value then inventories are decreasing. If the economy were at a point above the equilibrium level of spending and GDP, then we would have a point where spending was insufficient for that level of GDP. T ...
Climate and Scale in Economic Growth
... influence on economic conditions. Ground frost plays a role in human health, by selectively killing exposed organisms that help people control the transmission of disease. This in turn reduces morbidity, mortality, and uncertainty, hence promoting the accumulation of human capital [Bloom and Sachs 1 ...
... influence on economic conditions. Ground frost plays a role in human health, by selectively killing exposed organisms that help people control the transmission of disease. This in turn reduces morbidity, mortality, and uncertainty, hence promoting the accumulation of human capital [Bloom and Sachs 1 ...
Make in India and Productivity of Indian Textiles Industry
... Interpretation and Conclusion: Productivity increases when the growth in output is greater than the growth in input, or when the rate of growth of output minus the rate of growth of the composite input is positive. Economic growth can be obtained either by increasing inputs or by improving productiv ...
... Interpretation and Conclusion: Productivity increases when the growth in output is greater than the growth in input, or when the rate of growth of output minus the rate of growth of the composite input is positive. Economic growth can be obtained either by increasing inputs or by improving productiv ...
Economic Growth, Structural Change and Natural Resource Booms
... domestic manufacturing compared to the natural resource sector. The ratio between the manufacturing capital stock and the enclave sector’s capital stock is the economic variable which captures the sectoral composition of the economy and the degree of manufacturing development. In so doing, we introd ...
... domestic manufacturing compared to the natural resource sector. The ratio between the manufacturing capital stock and the enclave sector’s capital stock is the economic variable which captures the sectoral composition of the economy and the degree of manufacturing development. In so doing, we introd ...
Effect
... In this case, a shift in aggregate demand has no effect on the level of output, but does lead to a change in the level of prices and interest rates. The Keynesian AS-curve is horizontal, indicating that firms will supply whatever amount of goods is demanded at the existing price level, since their a ...
... In this case, a shift in aggregate demand has no effect on the level of output, but does lead to a change in the level of prices and interest rates. The Keynesian AS-curve is horizontal, indicating that firms will supply whatever amount of goods is demanded at the existing price level, since their a ...
Changing Labour Markets - The US Basic Income Guarantee Network
... supported. This a basic income does. Flexibility in hours and schedules means that more workers will be “atypical workers,” meaning that they will work only part- time, work on short contracts or other forms of less than full time work. But these people need to be supported full time, and this a bas ...
... supported. This a basic income does. Flexibility in hours and schedules means that more workers will be “atypical workers,” meaning that they will work only part- time, work on short contracts or other forms of less than full time work. But these people need to be supported full time, and this a bas ...
Financialization and the Crises of Capitalism
... of more or less discrete structural changes in the economies of the industrialized world. As with globalization, the changes are interlinked and tend to have similar consequences in the distribution of power, income, and wealth, and in the pattern of economic growth. The broadest and most often cite ...
... of more or less discrete structural changes in the economies of the industrialized world. As with globalization, the changes are interlinked and tend to have similar consequences in the distribution of power, income, and wealth, and in the pattern of economic growth. The broadest and most often cite ...
Which of the following would cause the production possibilities
... government spending is increased b. Increase the money supply when government spending is decreased c. Decrease the money supply when government spending is increased d. Increase interest rates when government spending is increased e. Decrease interest rates when government spending is decreased 27. ...
... government spending is increased b. Increase the money supply when government spending is decreased c. Decrease the money supply when government spending is increased d. Increase interest rates when government spending is increased e. Decrease interest rates when government spending is decreased 27. ...
MEASURING THE ECONOMY TOTAL OUTPUT Total Output (Y
... extra income and spending don't go on forever, but gradually wind down and peter out. We've gone through this before (see Economic Growth section). And we know that there is a simple formula to calculate the total amount of output generated: total extra output = multiplier × initial injection where ...
... extra income and spending don't go on forever, but gradually wind down and peter out. We've gone through this before (see Economic Growth section). And we know that there is a simple formula to calculate the total amount of output generated: total extra output = multiplier × initial injection where ...
Chapter 13 - Saving, investment, and the financial system
... • War on terrorism - increases in government spending ...
... • War on terrorism - increases in government spending ...
QUIZ 2: Macro – Winter 2002
... Question 3 (1 point each – 6 points total) Circle all true answers to the following statement. Assume that the income effects on labor supply are small relative to the substitution effects on labor supply. A permanent decline in the marginal tax rate on income (tn) will: You all should feel comfort ...
... Question 3 (1 point each – 6 points total) Circle all true answers to the following statement. Assume that the income effects on labor supply are small relative to the substitution effects on labor supply. A permanent decline in the marginal tax rate on income (tn) will: You all should feel comfort ...
Version of December 4, 2001
... computers has risen some, but the quality and capability of these computers has risen dramatically. The BLS uses a hedonic method to take into account the rise in quality of computers, and the rise in computer investment is substantially due to this adjustment for quality. Some economists fear that ...
... computers has risen some, but the quality and capability of these computers has risen dramatically. The BLS uses a hedonic method to take into account the rise in quality of computers, and the rise in computer investment is substantially due to this adjustment for quality. Some economists fear that ...
Micro - Unit 5
... A. equitable because people who are willing to work earn income. B. primarily determined by the prices of scarce resources people own. C. primarily determined by the government through its power to tax. ...
... A. equitable because people who are willing to work earn income. B. primarily determined by the prices of scarce resources people own. C. primarily determined by the government through its power to tax. ...
Aggregate Demand and Supply
... suffered six recessions. • A depression is a severe recession. The Great Depression occurred in 1929-1941 when output fell by about 30 percent and unemployment rose to 25 percent. ...
... suffered six recessions. • A depression is a severe recession. The Great Depression occurred in 1929-1941 when output fell by about 30 percent and unemployment rose to 25 percent. ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.