![Discussion of ”The cyclical behavior of equilibrium unemployment](http://s1.studyres.com/store/data/017818713_1-40ffe3bc4c75e6ba79d64daafca7bc8d-300x300.png)
Discussion of ”The cyclical behavior of equilibrium unemployment
... The model is based on the common assumptions in the relevant literature, as well as extensions that are already in use in related areas of research. To an outsider, it is impressive to see the number of different mechanisms that can be taken into account and made subject to a serious empirical inves ...
... The model is based on the common assumptions in the relevant literature, as well as extensions that are already in use in related areas of research. To an outsider, it is impressive to see the number of different mechanisms that can be taken into account and made subject to a serious empirical inves ...
why low inequality spurs growth: savings and investment by the poor
... micro-economic behavior of poor households. We describe a set of circumstances which can trigger a savings and investment boom among the poor. The poor are credit constrained, implying that they cannot borrow to finance even those investments that yield extraordinary returns. And their poverty precl ...
... micro-economic behavior of poor households. We describe a set of circumstances which can trigger a savings and investment boom among the poor. The poor are credit constrained, implying that they cannot borrow to finance even those investments that yield extraordinary returns. And their poverty precl ...
Unit 3: Markets, not just for fleas and stocks!
... demanded popcorn and then acquired it. The right side of the diagram shows how the popcorn was supplied. To be a successful popcorn “Business,” a company must secure kernels of corn; these are the primary “Resource” needed to produce popcorn. In the diagram, the “Resource” can be paid for by “Wages, ...
... demanded popcorn and then acquired it. The right side of the diagram shows how the popcorn was supplied. To be a successful popcorn “Business,” a company must secure kernels of corn; these are the primary “Resource” needed to produce popcorn. In the diagram, the “Resource” can be paid for by “Wages, ...
1 treatment of china as a non-market economy
... Among the other factors taken into consideration was rule of law. This area was found to be weak, with a Communist Party controlled judiciary, a vague legal framework, rudimentary trial procedures and few lawyers. The unique area where U.S. investigators found Vietnam to have made the transition to ...
... Among the other factors taken into consideration was rule of law. This area was found to be weak, with a Communist Party controlled judiciary, a vague legal framework, rudimentary trial procedures and few lawyers. The unique area where U.S. investigators found Vietnam to have made the transition to ...
SOUTHWESTERN MICHIGAN COLLEGE
... 43. Explain how short-run equilibrium in the economy is established. 44. Identify the factors that can change the price level, Real GDP, and the unemployment rate. 45. Explain the difference between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. 46. Ident ...
... 43. Explain how short-run equilibrium in the economy is established. 44. Identify the factors that can change the price level, Real GDP, and the unemployment rate. 45. Explain the difference between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. 46. Ident ...
T7.1 Long Run Economic Growth, Part I
... Used level (state) technology is reflected in the growth of total (integral) productivity of factor inputs, respectively so called “multifactor productivity”. Aggregate production function (general form) - describes the relationship between potential output (Y*) and factor inputs used in its manufac ...
... Used level (state) technology is reflected in the growth of total (integral) productivity of factor inputs, respectively so called “multifactor productivity”. Aggregate production function (general form) - describes the relationship between potential output (Y*) and factor inputs used in its manufac ...
Working With Our Basic Aggregate Demand / Supply Model
... Demand/Supply Model Slides to Accompany “Economics: Public and Private Choice 9th ed.” ...
... Demand/Supply Model Slides to Accompany “Economics: Public and Private Choice 9th ed.” ...
Chapter 6
... What Is New Trade Theory? New trade theory suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a large scale of output) can have important implications for international trade Countries may specialize in the production and export of particular pro ...
... What Is New Trade Theory? New trade theory suggests that the ability of firms to gain economies of scale (unit cost reductions associated with a large scale of output) can have important implications for international trade Countries may specialize in the production and export of particular pro ...
Practice Test 1 - Dasha Safonova
... B. is the result of consumer expenditures exceeding available output. C. is the result of the Fed increasing the quantity of money. D. is the result of a rise in the price of a key resource. 10. If demand pull inflation occurs when the economy is already at potential GDP, then following the initial ...
... B. is the result of consumer expenditures exceeding available output. C. is the result of the Fed increasing the quantity of money. D. is the result of a rise in the price of a key resource. 10. If demand pull inflation occurs when the economy is already at potential GDP, then following the initial ...
CA deficit
... • When foreigners sell us goods, they must do one of two things with the money: 1) Buy U.S. goods; or 2) Buy U.S. real or financial assets. • Either course of action creates about as many jobs as are “lost” by the imports. ...
... • When foreigners sell us goods, they must do one of two things with the money: 1) Buy U.S. goods; or 2) Buy U.S. real or financial assets. • Either course of action creates about as many jobs as are “lost” by the imports. ...
Employment in the ACT is forecast to grow by 3
... role. These reforms enable the Government to specify the quantity, quality and timeliness of services and to identify the cost of those services and opportunities for improved efficiency. The Government’s financial management performance is reflected in its recently re-confirmed AAA credit rating, t ...
... role. These reforms enable the Government to specify the quantity, quality and timeliness of services and to identify the cost of those services and opportunities for improved efficiency. The Government’s financial management performance is reflected in its recently re-confirmed AAA credit rating, t ...
Factors determining price developments
... How can monetary policy influence what we pay for our goods and services, that is to say the price level? This question touches upon what economists call the “monetary transmission mechanism” (or MTM), i.e. the process through which actions of the central bank (such as changes in the policy rates) a ...
... How can monetary policy influence what we pay for our goods and services, that is to say the price level? This question touches upon what economists call the “monetary transmission mechanism” (or MTM), i.e. the process through which actions of the central bank (such as changes in the policy rates) a ...
3 Solow growth model
... transition output as well as capital grows, both at a diminishing rate. Growth tapers off to nothing in the new steady state. Implications A permanent increase in the saving ratio will raise the level of output permanently, but not its rate of growth. During the transition period, which might last d ...
... transition output as well as capital grows, both at a diminishing rate. Growth tapers off to nothing in the new steady state. Implications A permanent increase in the saving ratio will raise the level of output permanently, but not its rate of growth. During the transition period, which might last d ...
C d – G
... Since Cd declines less than G rises, national saving (Sd = Y – Cd – G) declines So government purchases reduce both desired consumption and desired national saving. ...
... Since Cd declines less than G rises, national saving (Sd = Y – Cd – G) declines So government purchases reduce both desired consumption and desired national saving. ...
Where should you start?
... This chapter introduces the structure and institutions of the U.S. economy. It defines concepts such as gross domestic product (GDP), the structure of industry, and the functions of government in the U.S. economy. The chapter’s goal is to provide students with a sense for the overall economy buildin ...
... This chapter introduces the structure and institutions of the U.S. economy. It defines concepts such as gross domestic product (GDP), the structure of industry, and the functions of government in the U.S. economy. The chapter’s goal is to provide students with a sense for the overall economy buildin ...
1. Classical theory advocates ______ policy and Keynesian theory
... a. Incorrect. If real GDP exceeds Yp , then wages will rise and shift SRAS2 to SRAS1. b. Correct. Competition from unemployed workers results in lower wages. c. Incorrect. A recessionary gap after adjustment results in long-run equilibrium at P1, Yp. d. Incorrect. Answers a. and c. do not take place ...
... a. Incorrect. If real GDP exceeds Yp , then wages will rise and shift SRAS2 to SRAS1. b. Correct. Competition from unemployed workers results in lower wages. c. Incorrect. A recessionary gap after adjustment results in long-run equilibrium at P1, Yp. d. Incorrect. Answers a. and c. do not take place ...
ECON ch 10.1
... of a country during one year • Example: If production in Russia involves any capital owned by U.S. residents, it would be counted as part of the U.S. GNP • GDP more accurately represents short-term resource use changes in the economy ...
... of a country during one year • Example: If production in Russia involves any capital owned by U.S. residents, it would be counted as part of the U.S. GNP • GDP more accurately represents short-term resource use changes in the economy ...
The IS-LM Framework for Macroeconomic Analysis
... more nonmonetary assets and lesser money. This means that there is an inverse relationship between demand for money and interest rate. For this reason, the demand for money curve always slopes downward. On the other hand, as the money supply is fixed, it is always vertical irrespective of the intere ...
... more nonmonetary assets and lesser money. This means that there is an inverse relationship between demand for money and interest rate. For this reason, the demand for money curve always slopes downward. On the other hand, as the money supply is fixed, it is always vertical irrespective of the intere ...
RELATIVE INCOME HYPOTHESIS
... utility) an individual derives from a given consumption level depends on its relative magnitude in the society (e.g., relative to the average consumption) rather than its absolute level. It is based on a postulate that has long been acknowledged by psychologists and sociologists, namely that individ ...
... utility) an individual derives from a given consumption level depends on its relative magnitude in the society (e.g., relative to the average consumption) rather than its absolute level. It is based on a postulate that has long been acknowledged by psychologists and sociologists, namely that individ ...
PDF
... Both sectors use labor and capital. The non-agricultural sector uses inputs from the agricultural sector, i.e.; the total output of the non-agricultural sector is dependent on the volume of agricultural output. This formulation represents the contribution of agriculture to the non-agricultural secto ...
... Both sectors use labor and capital. The non-agricultural sector uses inputs from the agricultural sector, i.e.; the total output of the non-agricultural sector is dependent on the volume of agricultural output. This formulation represents the contribution of agriculture to the non-agricultural secto ...
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.