These sample questions are based on the textbook
... If society is initially at point C , it must sacrifice 6 units of bread to obtain one more unit of tractors. If society produces 2 units of tractors and 12 units of bread, it is not using its available resources with maximum efficiency. ...
... If society is initially at point C , it must sacrifice 6 units of bread to obtain one more unit of tractors. If society produces 2 units of tractors and 12 units of bread, it is not using its available resources with maximum efficiency. ...
NBER WORXING PAPER SERIES REAL RIGIDITIES AND NON-NEUTRALITY OF MONEY Laurence Ball
... and seminar participants at Harvard, Johns Hopkins, Michigan, Penn, Wisconsin, Yale and the NBER; and for financiel support from the NSF. The research reported here is part of the NBER's research program in Economic Fluctuations. Any opinions expressed are those of the authors and not those of the N ...
... and seminar participants at Harvard, Johns Hopkins, Michigan, Penn, Wisconsin, Yale and the NBER; and for financiel support from the NSF. The research reported here is part of the NBER's research program in Economic Fluctuations. Any opinions expressed are those of the authors and not those of the N ...
Principles Of Economics
... later and have to try to “catch up.” Instructors can help students by making this clear from the start. However, just talking about it won’t convince many students. They have a great deal of experience in other classes that are very different from economics. It is important to convince them that th ...
... later and have to try to “catch up.” Instructors can help students by making this clear from the start. However, just talking about it won’t convince many students. They have a great deal of experience in other classes that are very different from economics. It is important to convince them that th ...
Growth, Distribution and Effective Demand: the supermultiplier
... output growth and the rate of capital accumulation (i.e. the rate of growth of the capital stock) to be equal to each other. The heterodox literature that deals with the relationship between economic growth, income distribution and effective demand, proposes two types of adjustment mechanisms to ach ...
... output growth and the rate of capital accumulation (i.e. the rate of growth of the capital stock) to be equal to each other. The heterodox literature that deals with the relationship between economic growth, income distribution and effective demand, proposes two types of adjustment mechanisms to ach ...
File - MCNEIL ECONOMICS
... Chapter 12 presents a macro model of the economy that is based on aggregate demand and aggregate supply. This model can be used to explain real domestic output and the level of prices at any point in time and to understand what causes output and the price level to change. The aggregate demand (AD) c ...
... Chapter 12 presents a macro model of the economy that is based on aggregate demand and aggregate supply. This model can be used to explain real domestic output and the level of prices at any point in time and to understand what causes output and the price level to change. The aggregate demand (AD) c ...
essen-ch23-presentat..
... The aggregate demand curve slopes downward because a change in the price level has a wealth effect on consumption, an interest-rate effect on investment, and an exchange-rate effect on net ...
... The aggregate demand curve slopes downward because a change in the price level has a wealth effect on consumption, an interest-rate effect on investment, and an exchange-rate effect on net ...
Aggregate Supply
... The aggregate demand curve slopes downward because a change in the price level has a wealth effect on consumption, an interest-rate effect on investment, and an exchange-rate effect on net ...
... The aggregate demand curve slopes downward because a change in the price level has a wealth effect on consumption, an interest-rate effect on investment, and an exchange-rate effect on net ...
Why Have Business Cycle Fluctuations Become Less
... labor utilization. This “mis-measurement” view of TFP would suggest that the change in TFP volatility is due to the change in the volatility of some other shock, combined with unmeasured changes in factor utilization. We therefore pursue this possibility using the model of Burnside et al. (1996) th ...
... labor utilization. This “mis-measurement” view of TFP would suggest that the change in TFP volatility is due to the change in the volatility of some other shock, combined with unmeasured changes in factor utilization. We therefore pursue this possibility using the model of Burnside et al. (1996) th ...
Chapter 33 PPT of Mankiw presented in class
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
NBER WORKING PAPER SERIES CYCLES Enrique G. Mendoza
... is higher and becomes a steeper function of TFP at lower elasticities of substitution, because the inputs become less similar. The elasticity of labor supply also in‡uences the output cost of default. In particular, the cost is larger the higher this elasticity, because default triggers a reduction ...
... is higher and becomes a steeper function of TFP at lower elasticities of substitution, because the inputs become less similar. The elasticity of labor supply also in‡uences the output cost of default. In particular, the cost is larger the higher this elasticity, because default triggers a reduction ...
NBER WORKING PAPER SERIES WHY HAVE BUSINESS CYCLE FLUCTUATIONS BECOME LESS VOLATILE?
... The existing literature offers several explanations for the fall in business cycle volatility, though currently there is no generally accepted explanation of lower cyclical volatility. Kahn, McConnell and Perez-Quiros (2002) argue that the “information revolution” has changed the way shocks are prop ...
... The existing literature offers several explanations for the fall in business cycle volatility, though currently there is no generally accepted explanation of lower cyclical volatility. Kahn, McConnell and Perez-Quiros (2002) argue that the “information revolution” has changed the way shocks are prop ...
ECONOMICS
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
The Impact of Regional and Sectoral Productivity Changes on the
... prising land and structures. As emphasized by Blanchard and Katz (1992), labor is allowed to move across both regions and sectors. Land and structures can be used by any sector but are …xed locally. Sectors are interconnected by way of input-output linkages but, in contrast to Long and Plosser (198 ...
... prising land and structures. As emphasized by Blanchard and Katz (1992), labor is allowed to move across both regions and sectors. Land and structures can be used by any sector but are …xed locally. Sectors are interconnected by way of input-output linkages but, in contrast to Long and Plosser (198 ...
“Inventory Investment and Output Volatility”
... techniques adopted by the automotive industry. Third, an important innovation in inventory management has been the development of more sophisticated supply chains among firms and industries. Studying detailed industries allows us to examine the role of inventory management in the stage-of-fabricati ...
... techniques adopted by the automotive industry. Third, an important innovation in inventory management has been the development of more sophisticated supply chains among firms and industries. Studying detailed industries allows us to examine the role of inventory management in the stage-of-fabricati ...
Chapter 3A Consumer Surplus, Producer Surplus and Market
... a. Incorrect. In equilibrium, the quantity demanded equals the quantity supplied and there is no deadweight loss. b. Incorrect. In equilibrium, the quantity demanded equals the quantity supplied and there is no deadweight loss. c. Incorrect. In equilibrium, the quantity demanded equals the quantity ...
... a. Incorrect. In equilibrium, the quantity demanded equals the quantity supplied and there is no deadweight loss. b. Incorrect. In equilibrium, the quantity demanded equals the quantity supplied and there is no deadweight loss. c. Incorrect. In equilibrium, the quantity demanded equals the quantity ...
Microeconomics_Part 2
... Efficiency requires equality of incomes. To make the economic pie as large as possible, it must be cut into equal pieces, one for each person. This idea turns out to be wrong. But there is a lesson in the reason that it is wrong, so this idea is worth a closer look. Utilitarianism The nineteenth-cen ...
... Efficiency requires equality of incomes. To make the economic pie as large as possible, it must be cut into equal pieces, one for each person. This idea turns out to be wrong. But there is a lesson in the reason that it is wrong, so this idea is worth a closer look. Utilitarianism The nineteenth-cen ...
Hysteresis in Unemployment and Jobless Recoveries Dmitry Plotnikov May 12, 2015
... Explains how demand and supply shocks feed back into beliefs. Explains future path of the unemployment rate, output, consumption, investment and the real wage. ...
... Explains how demand and supply shocks feed back into beliefs. Explains future path of the unemployment rate, output, consumption, investment and the real wage. ...
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.