Unit13.f2fslides.2013
... Assumptions: • Fixed amount of money in economy • QTM holds true Theory: Gov borrowing takes $ away/raises interest rate for firm and household borrowers –> will reduce C and I unless Central Bank increases M to fund deficit inflation Absolutely not supported by evidence or data in modern real wo ...
... Assumptions: • Fixed amount of money in economy • QTM holds true Theory: Gov borrowing takes $ away/raises interest rate for firm and household borrowers –> will reduce C and I unless Central Bank increases M to fund deficit inflation Absolutely not supported by evidence or data in modern real wo ...
keynesian economics
... • Wages are sticky in the downward direction • wage contracts are typically adjusted no more than once a year • Union pressure to maintain/increase wages • a reluctance to threaten company morale • Even if wages were lowered, this would lower worker’s incomes, consequently lowering their spending on ...
... • Wages are sticky in the downward direction • wage contracts are typically adjusted no more than once a year • Union pressure to maintain/increase wages • a reluctance to threaten company morale • Even if wages were lowered, this would lower worker’s incomes, consequently lowering their spending on ...
Real Business Cycles: A New Keynesian Persective
... S Real business cycle theory describes the fluctuations as the ...
... S Real business cycle theory describes the fluctuations as the ...
The Business Cycle
... economy, called a contraction. – The bottom of the fall is called the trough. ...
... economy, called a contraction. – The bottom of the fall is called the trough. ...
ECON 2020-200 Principles of Macroeconomics
... A few other reading assignments will be distributed and referred to in the class. Use of new technology such as website search and reference is required. Course Description and Objectives: This course focuses on the overall economic issues of GDP calculation, working · of ·market system in a capital ...
... A few other reading assignments will be distributed and referred to in the class. Use of new technology such as website search and reference is required. Course Description and Objectives: This course focuses on the overall economic issues of GDP calculation, working · of ·market system in a capital ...
John Maynard Keynes
... • Crowding Out: Large amounts of government borrowing causes higher interest rates and “crowding out” of private borrowing. • Inflation: Large government expenditures can contribute to inflation. • Time Lag: The results of fiscal (taxing and spending) expansion can come too late (when economy is ...
... • Crowding Out: Large amounts of government borrowing causes higher interest rates and “crowding out” of private borrowing. • Inflation: Large government expenditures can contribute to inflation. • Time Lag: The results of fiscal (taxing and spending) expansion can come too late (when economy is ...
Intermediate Macroeconomics - College Of Business and
... loanable funds to rise relative to the supply of savings. This should cause the interest rate to rise. If the central bank steps in to moderate interest rates, the interest rate might stay the same or rise but still be below the natural rate, making the resulting boom unsustainable. ...
... loanable funds to rise relative to the supply of savings. This should cause the interest rate to rise. If the central bank steps in to moderate interest rates, the interest rate might stay the same or rise but still be below the natural rate, making the resulting boom unsustainable. ...
the fed, fiscal, monetary policy, keynes
... tax cuts can help an economy by raising supply Those that agree with supply-side economics believe that taxes have strong negative influences on economic output ...
... tax cuts can help an economy by raising supply Those that agree with supply-side economics believe that taxes have strong negative influences on economic output ...
The Business Cycle
... The Great Depression proved all of this was wrong (it lasted over 10 years) and that government intervention in the economy was necessary ...
... The Great Depression proved all of this was wrong (it lasted over 10 years) and that government intervention in the economy was necessary ...
Ch. 15 / 16 Study Guide
... ____ 10. The U.S. economy experienced double digit inflation in the 1980’s. To bring prices down, aggregate (total) demand needed to be reduced. Accordingly, what 2 actions should the government have taken? A. raise interest rates and reduce government spending B. lower interest rates and reduce gov ...
... ____ 10. The U.S. economy experienced double digit inflation in the 1980’s. To bring prices down, aggregate (total) demand needed to be reduced. Accordingly, what 2 actions should the government have taken? A. raise interest rates and reduce government spending B. lower interest rates and reduce gov ...
Module History and Alternative Views of
... Important difference: SRAS is vertical (CT) so a shift in AD changes PL but not output. In Keynesian view, a shift affects both PL and output. ...
... Important difference: SRAS is vertical (CT) so a shift in AD changes PL but not output. In Keynesian view, a shift affects both PL and output. ...
GCSE Making a Living extension case study
... spending reduced even further. Governments tried to encourage spending, and lending, with low interest rates and by putting money into the banking system. Low prices sound good for consumers but deflation can lead to salary cuts or more unemployment as profit margins are reduced. This especially aff ...
... spending reduced even further. Governments tried to encourage spending, and lending, with low interest rates and by putting money into the banking system. Low prices sound good for consumers but deflation can lead to salary cuts or more unemployment as profit margins are reduced. This especially aff ...
Business Cycle Theory
... A free market economy does not grow at a constant rate. It goes through a series of expansions and contractions. These fluctuations are called business cycles. Business cycles reflect patterns to the general level of economic activity or the level of production of goods and services (GDP). Since thi ...
... A free market economy does not grow at a constant rate. It goes through a series of expansions and contractions. These fluctuations are called business cycles. Business cycles reflect patterns to the general level of economic activity or the level of production of goods and services (GDP). Since thi ...
History of Post Keynesian Economics
... Fighting Bastard Keynesians – Price theory • Attack perfect competition price theory -- Kalecki: degree of monopoly ...
... Fighting Bastard Keynesians – Price theory • Attack perfect competition price theory -- Kalecki: degree of monopoly ...
Multiple Choice: Circle the answer the best completes each question
... 25. One necessary characteristic of money is that it must be unlimited in supply. 26. Commercial banks like Wells Fargo and Washington Mutual make a profit by loaning money. 27. Money is anything that is accepted for payment for goods and services. 28. Using a contractionary fiscal policy results in ...
... 25. One necessary characteristic of money is that it must be unlimited in supply. 26. Commercial banks like Wells Fargo and Washington Mutual make a profit by loaning money. 27. Money is anything that is accepted for payment for goods and services. 28. Using a contractionary fiscal policy results in ...
Ch. 15 / 16 StudyGuide Multiple Choice ____ 1. You are President
... ____ 10. The U.S. economy experienced double digit inflation in the 1980’s. To bring prices down, aggregate (total) demand needed to be reduced. Accordingly, what 2 actions should the government have taken? A. raise interest rates and reduce government spending B. lower interest rates and reduce gov ...
... ____ 10. The U.S. economy experienced double digit inflation in the 1980’s. To bring prices down, aggregate (total) demand needed to be reduced. Accordingly, what 2 actions should the government have taken? A. raise interest rates and reduce government spending B. lower interest rates and reduce gov ...
'Austrian Economics' Booms in Popularity, Busts Mainstream Myths
... world are tired of being fleeced by those in power and are looking for answers from the folks who told the truth and got it right. Despite the rhetoric about recovery, America is in the biggest financial crisis of its young history. I'm going to listen to what the folks who predicted and explained e ...
... world are tired of being fleeced by those in power and are looking for answers from the folks who told the truth and got it right. Despite the rhetoric about recovery, America is in the biggest financial crisis of its young history. I'm going to listen to what the folks who predicted and explained e ...
The Business Cycle
... – What forces cause instability? – What, if anything, can the government do to promote steady economic growth? ...
... – What forces cause instability? – What, if anything, can the government do to promote steady economic growth? ...
Four Phases of the Business Cycle
... • Recession Phase - turning point from prosperity to depression • economic activities slow down • when demand starts falling, the overproduction and future investment plans are also given up • steady decline in the output, income, employment, prices and profit • businessmen lose confidence and becom ...
... • Recession Phase - turning point from prosperity to depression • economic activities slow down • when demand starts falling, the overproduction and future investment plans are also given up • steady decline in the output, income, employment, prices and profit • businessmen lose confidence and becom ...
Exam #4 Review from Old SI section
... b) debt interest on the governments debt c) purchase of foreign bonds d) transfer payments 19. The idea that a government budget deficit decreases investment is called ____________________________. ...
... b) debt interest on the governments debt c) purchase of foreign bonds d) transfer payments 19. The idea that a government budget deficit decreases investment is called ____________________________. ...
Economics Theories
... productivity theory of distribution shows how capital or labor will be sought until the marginal revenue from employing either is equal to its marginal cost. Marginal productivity theory of distribution deals principally with demand for factors of production and disregards the supply side. Also see ...
... productivity theory of distribution shows how capital or labor will be sought until the marginal revenue from employing either is equal to its marginal cost. Marginal productivity theory of distribution deals principally with demand for factors of production and disregards the supply side. Also see ...
We Forgot Everything Keynes Taught Us
... We Forgot Everything Keynes Taught Us Robert Skidelsky The Washington Post ...
... We Forgot Everything Keynes Taught Us Robert Skidelsky The Washington Post ...