Real Business Cycles Basic idea
... 1. Cyclical properties of classical models of the business cycle - Hard to explain deep recessions and depressions (1930s, 200709) as technological regress. What did we forget? 2. Money and output: is money neutral? ...
... 1. Cyclical properties of classical models of the business cycle - Hard to explain deep recessions and depressions (1930s, 200709) as technological regress. What did we forget? 2. Money and output: is money neutral? ...
Notes 1. that`s a Fedspeak for - что на языке ФРС означает 2
... began to tighten; production capacity glut; the Fed voiced its concerns; consumer confidence; companies have been exceptionally hesitant to invest and hire. Exercise 3. Give the antonyms to the following: to tighten (the policy); jobless rate; dipped; inflation; to soar; import prices; to accelerate ...
... began to tighten; production capacity glut; the Fed voiced its concerns; consumer confidence; companies have been exceptionally hesitant to invest and hire. Exercise 3. Give the antonyms to the following: to tighten (the policy); jobless rate; dipped; inflation; to soar; import prices; to accelerate ...
Final Exam Review Sheet
... 16. Impact of price floors (minimum wages) and price ceilings (rent control) on market, quantity supplied and quantity demanded. 17. Using equations to calculate market equilibrium. 18. Finding consumer surplus, producer surplus, social surplus, and dead weight loss on a graph. 19. Impact of a unit ...
... 16. Impact of price floors (minimum wages) and price ceilings (rent control) on market, quantity supplied and quantity demanded. 17. Using equations to calculate market equilibrium. 18. Finding consumer surplus, producer surplus, social surplus, and dead weight loss on a graph. 19. Impact of a unit ...
FedViews
... The views expressed are those of the author, with input from the forecasting staff of the Federal Reserve Bank of San Francisco. They are not intended to represent the views of others within the Bank or within the Federal Reserve System. FedViews generally appears around the middle of the month. The ...
... The views expressed are those of the author, with input from the forecasting staff of the Federal Reserve Bank of San Francisco. They are not intended to represent the views of others within the Bank or within the Federal Reserve System. FedViews generally appears around the middle of the month. The ...
Answers to Homework #4
... The labor supply curve shifts right, leading to higher employment, a lower wage rate, greater output, and lower labor productivity. b. The average education level has been dramatically increased. Assume that this change does not alter the demand for or the supply of labor. Better education increases ...
... The labor supply curve shifts right, leading to higher employment, a lower wage rate, greater output, and lower labor productivity. b. The average education level has been dramatically increased. Assume that this change does not alter the demand for or the supply of labor. Better education increases ...
Exchange Rate and International Outsourcing: Would Chinese
... • We live in a world of both specialization and globalization. • Encouraged by innovation in computer, communication and transportation technology, firms tend to specialize in particular stages or components of production, exporting them to other countries for further processing or input. • Grossman ...
... • We live in a world of both specialization and globalization. • Encouraged by innovation in computer, communication and transportation technology, firms tend to specialize in particular stages or components of production, exporting them to other countries for further processing or input. • Grossman ...
Chapter 26 Key Question Solutions
... happen when a recession is forecast. Capital and durable goods industries therefore suffer large output declines during recessions. In contrast, consumers cannot long postpone the buying of nondurables such as food; therefore recessions only slightly reduce non-durable output. Also, capital and dura ...
... happen when a recession is forecast. Capital and durable goods industries therefore suffer large output declines during recessions. In contrast, consumers cannot long postpone the buying of nondurables such as food; therefore recessions only slightly reduce non-durable output. Also, capital and dura ...
Heterodox Theories of Economic Development
... Productivity increase is limited, hence wage increase is limited when specilization is in labor-intensive export goods. ...
... Productivity increase is limited, hence wage increase is limited when specilization is in labor-intensive export goods. ...
Word
... In the Home X industry, labor is paid the value of its marginal product. That marginal product has increased by 10% due to the improved technology, so labor’s wage in units of X has gone up by that amount. However, the price of X has fallen, and we don’t know by how much. If the price falls by less ...
... In the Home X industry, labor is paid the value of its marginal product. That marginal product has increased by 10% due to the improved technology, so labor’s wage in units of X has gone up by that amount. However, the price of X has fallen, and we don’t know by how much. If the price falls by less ...
Agriculture Sector Development Programme (ASDP)
... ASDP basket structures established M and E framework established Commitment to Work Together ...
... ASDP basket structures established M and E framework established Commitment to Work Together ...
Honors 102 - Fresno State email
... 1. What were the social, political and economic consequences of the Industrial Revolution in England? How did these changes influence economic theories? 2. Explain David Ricardo’s theory of rent (make sure to give a numerical example). What is the significance of this theory for distribution of inco ...
... 1. What were the social, political and economic consequences of the Industrial Revolution in England? How did these changes influence economic theories? 2. Explain David Ricardo’s theory of rent (make sure to give a numerical example). What is the significance of this theory for distribution of inco ...
Market for Inputs.SU4
... An Alternative Derivation • Profit maximization requires that MR = MC so we have MR MPK = MRPK = r MR MPL = MRPL = w ...
... An Alternative Derivation • Profit maximization requires that MR = MC so we have MR MPK = MRPK = r MR MPL = MRPL = w ...
ECONOMIC ENVIRONMENT by DR. PARAMITA DASGUPTA
... NEED FOR SECTORAL REFORMS, RATIONALISATION OF PRICES. REGULATORY REFORMS REQUIRED FOR ENSURING FAIR COMPETITION AMONG PLAYERS. AVAILABILITY OF FINANCE . ...
... NEED FOR SECTORAL REFORMS, RATIONALISATION OF PRICES. REGULATORY REFORMS REQUIRED FOR ENSURING FAIR COMPETITION AMONG PLAYERS. AVAILABILITY OF FINANCE . ...
Document
... • An aerospace engineer in the U.S. receives $89,000 on average per year • A preschool teacher receives $26,000 on average per year • What causes these differences? Can we explain them with differences in productivity? ...
... • An aerospace engineer in the U.S. receives $89,000 on average per year • A preschool teacher receives $26,000 on average per year • What causes these differences? Can we explain them with differences in productivity? ...
Reference sheet - Mrs. Ennis AP ECONOMICS
... CLASSICAL: Relationship between output and price level: as price level increases, quantity supplied increases (suppliers want to sell more if they can get a higher price for it). Changes in price level result in change ON the curve; exogenous changes result in shifts OF the line. KEYESIAN: Wages are ...
... CLASSICAL: Relationship between output and price level: as price level increases, quantity supplied increases (suppliers want to sell more if they can get a higher price for it). Changes in price level result in change ON the curve; exogenous changes result in shifts OF the line. KEYESIAN: Wages are ...
Midterm #1
... accountants, and telemarketers and call it all “labor”, and disregard any effect that might come about because these are not the same kind of labor. We combine the contribution of printing presses, computers, cement trucks, and hospital equipment and call it all “capital”, and disregard any effect t ...
... accountants, and telemarketers and call it all “labor”, and disregard any effect that might come about because these are not the same kind of labor. We combine the contribution of printing presses, computers, cement trucks, and hospital equipment and call it all “capital”, and disregard any effect t ...
Marginal Revenue Product (MRP)
... • As the opportunity cost of work increases, we require higher rates of pay. • The marginal utility of income declines as more is earned. • The upward slope of an individual labor supply curve reflects: – Increasing opportunity cost of labor. – Decreasing marginal utility of income. ...
... • As the opportunity cost of work increases, we require higher rates of pay. • The marginal utility of income declines as more is earned. • The upward slope of an individual labor supply curve reflects: – Increasing opportunity cost of labor. – Decreasing marginal utility of income. ...
Modern Growth Theory ∆k = sy – (d + n)k
... Robert Solow won the Nobel prize in economics (in 1987) for his contribution to the Economic theory of Growth. The Solow model is superior to the Harrod-Domar (HD) model. The HD model follows a Leontief production function which implies: (1) labor and capital are used in fixed proportions; (2) the r ...
... Robert Solow won the Nobel prize in economics (in 1987) for his contribution to the Economic theory of Growth. The Solow model is superior to the Harrod-Domar (HD) model. The HD model follows a Leontief production function which implies: (1) labor and capital are used in fixed proportions; (2) the r ...
MAMMON.ECONOMICS.NOTES.2010
... brewer, or the baker, that we expect our dinner, but from their regard to their own interest . . . they intend only their own gain, and they are in this, as in many other cases, led by an invisible hand to promote an end which was no part of their intention. Nor is it always the worse for the societ ...
... brewer, or the baker, that we expect our dinner, but from their regard to their own interest . . . they intend only their own gain, and they are in this, as in many other cases, led by an invisible hand to promote an end which was no part of their intention. Nor is it always the worse for the societ ...
Group excecise on modular approaches to census and survey
... The vision of PMA is to eradicate poverty through a profitable, competitive, sustainable and dynamic agricultural and agroindustrial sector. Its mission is to eradicate poverty through transforming subsistence agriculture to commercial agriculture. The specific objectives of the PMA are to: – Increa ...
... The vision of PMA is to eradicate poverty through a profitable, competitive, sustainable and dynamic agricultural and agroindustrial sector. Its mission is to eradicate poverty through transforming subsistence agriculture to commercial agriculture. The specific objectives of the PMA are to: – Increa ...
Fei–Ranis model of economic growth
The Fei–Ranis model of economic growth is a dualism model in developmental economics or welfare economics that has been developed by John C. H. Fei and Gustav Ranis and can be understood as an extension of the Lewis model. It is also known as the Surplus Labor model. It recognizes the presence of a dual economy comprising both the modern and the primitive sector and takes the economic situation of unemployment and underemployment of resources into account, unlike many other growth models that consider underdeveloped countries to be homogenous in nature. According to this theory, the primitive sector consists of the existing agricultural sector in the economy, and the modern sector is the rapidly emerging but small industrial sector. Both the sectors co-exist in the economy, wherein lies the crux of the development problem. Development can be brought about only by a complete shift in the focal point of progress from the agricultural to the industrial economy, such that there is augmentation of industrial output. This is done by transfer of labor from the agricultural sector to the industrial one, showing that underdeveloped countries do not suffer from constraints of labor supply. At the same time, growth in the agricultural sector must not be negligible and its output should be sufficient to support the whole economy with food and raw materials. Like in the Harrod–Domar model, saving and investment become the driving forces when it comes to economic development of underdeveloped countries.