Economics
... knowledge, profit maximization, free entry. Short-run equilibrium of firm and industry. Long-run equilibrium of the firm. Constant and increasing costs industries. ECON 303 Macroeconomic Theory I (Pre-req: ECON 202 and ECON 203) Introduction: Macroeconomic variable; functional relationships and para ...
... knowledge, profit maximization, free entry. Short-run equilibrium of firm and industry. Long-run equilibrium of the firm. Constant and increasing costs industries. ECON 303 Macroeconomic Theory I (Pre-req: ECON 202 and ECON 203) Introduction: Macroeconomic variable; functional relationships and para ...
Macroeconomics
... Classes (2 hours a week). Classes commence in the second week of the semester. Tutors provide an opportunity to discuss lecture material at the beginning or end of their tutorials. The course emphasis is on conducting economic analysis rather than simply establishing a set of facts to be memorised ...
... Classes (2 hours a week). Classes commence in the second week of the semester. Tutors provide an opportunity to discuss lecture material at the beginning or end of their tutorials. The course emphasis is on conducting economic analysis rather than simply establishing a set of facts to be memorised ...
Due Date: Thursday, September 8th (at the beginning of class)
... If society becomes more thrifty – meaning that for any given level of income people save more and consume less – then the planned-expenditure function shifts downward. Equilibrium income falls (by the way, how much does this income fall by? Ans: 1/(1-MPC) times the decline in a). b. What happens to ...
... If society becomes more thrifty – meaning that for any given level of income people save more and consume less – then the planned-expenditure function shifts downward. Equilibrium income falls (by the way, how much does this income fall by? Ans: 1/(1-MPC) times the decline in a). b. What happens to ...
Problem Set 8 FE312 Fall 2011 Rahman Some Answers 1
... If society becomes more thrifty – meaning that for any given level of income people save more and consume less – then the planned-expenditure function shifts downward. Equilibrium income falls (by the way, how much does this income fall by? Ans: 1/(1-MPC) times the decline in a). b. What happens to ...
... If society becomes more thrifty – meaning that for any given level of income people save more and consume less – then the planned-expenditure function shifts downward. Equilibrium income falls (by the way, how much does this income fall by? Ans: 1/(1-MPC) times the decline in a). b. What happens to ...
âEconomy in deflation: debt, competitiveness and growthâ
... Samuelson (1998), Krugman (1998), and De Long (1999) are examples of economists working in the Keynesian tradition who equate periods of deflation with economic contraction. Krugman (1998) defines “liquidity trap” as a situation in which conventional monetary policy is impotent because the nominal i ...
... Samuelson (1998), Krugman (1998), and De Long (1999) are examples of economists working in the Keynesian tradition who equate periods of deflation with economic contraction. Krugman (1998) defines “liquidity trap” as a situation in which conventional monetary policy is impotent because the nominal i ...
ISLM: Part I: The Real Sector
... So far, we have one equilibrium condition (in orange) and two behavioral relationships (in blue). Together, these three relationships imply a particular relationship between the interest rate and the economy’s total income. This relationship is revealed by tracing out the implications of a low inter ...
... So far, we have one equilibrium condition (in orange) and two behavioral relationships (in blue). Together, these three relationships imply a particular relationship between the interest rate and the economy’s total income. This relationship is revealed by tracing out the implications of a low inter ...
Macroeconomics
... in the book are just applications of the basic ideas and students have to prepare them without prior explanations. Seminars enforce and extend the areas covered in the lectures. The seminars activities are mixture of covering seminar discussion topics and solving the concrete numerical problems. Ind ...
... in the book are just applications of the basic ideas and students have to prepare them without prior explanations. Seminars enforce and extend the areas covered in the lectures. The seminars activities are mixture of covering seminar discussion topics and solving the concrete numerical problems. Ind ...
ECON_CH15_Using Fiscal Policy
... Not all parts of the country may have same economic conditions – One state or region may have recession while another has inflation One broad policy for entire nation may not be appropriate ...
... Not all parts of the country may have same economic conditions – One state or region may have recession while another has inflation One broad policy for entire nation may not be appropriate ...
PDF
... avoid taking on debt and ‘crowding out’ more productive private sector activity. The Classical view of economic management at the aggregate level is associated with ‘free-market’ views about economic policy in general, and particularly with support for a large, and largely unregulated, financial sec ...
... avoid taking on debt and ‘crowding out’ more productive private sector activity. The Classical view of economic management at the aggregate level is associated with ‘free-market’ views about economic policy in general, and particularly with support for a large, and largely unregulated, financial sec ...
New Keynesian macroeconomics: Entry For New Palgrave
... monopolist restricts output, an increase is good and a decrease bad. To many macroeconomists, this seems more plausible and common sense than the implication of the first welfare theorem that starting from the competitive equilibrium increases and decreases in output and employment are both (slightl ...
... monopolist restricts output, an increase is good and a decrease bad. To many macroeconomists, this seems more plausible and common sense than the implication of the first welfare theorem that starting from the competitive equilibrium increases and decreases in output and employment are both (slightl ...
Aggregate Production Function
... Midterm #2 Spring 2006 Binary Choice 1) Holding everything else constant, if the level of technology increases, then according to the classical model, average income will increase. a. True b. False 2) Economists only care about short-run growth, because “in the long run we are all dead.” a. True b. ...
... Midterm #2 Spring 2006 Binary Choice 1) Holding everything else constant, if the level of technology increases, then according to the classical model, average income will increase. a. True b. False 2) Economists only care about short-run growth, because “in the long run we are all dead.” a. True b. ...
The Digital Economist
... (tax rates) or both. Typically such policies would be used in cases where the economy is operating well below its potential. In such cases there are excess resources available for production and thus little pressure on the price level. The use of expansionary fiscal policy was first articulated by J ...
... (tax rates) or both. Typically such policies would be used in cases where the economy is operating well below its potential. In such cases there are excess resources available for production and thus little pressure on the price level. The use of expansionary fiscal policy was first articulated by J ...
File
... closely tied to economic activity. ● Because incomes, earning, and profits all fall in a recession, the government’s tax revenue also falls ■ This automatic tax cut stimulates aggregate demand which reduces the magnitude of economic fluctuations ○ Government spending is another automatic stabi ...
... closely tied to economic activity. ● Because incomes, earning, and profits all fall in a recession, the government’s tax revenue also falls ■ This automatic tax cut stimulates aggregate demand which reduces the magnitude of economic fluctuations ○ Government spending is another automatic stabi ...
1. Classical theory advocates ______ policy and Keynesian theory
... a. Incorrect. Classical theory argues that government actions to increase aggregate demand are unnecessary and only increases the price level. b. Incorrect. This result occurs over time because competition among unemployed workers reduces the wage rate, and not because of government actions. c. Corr ...
... a. Incorrect. Classical theory argues that government actions to increase aggregate demand are unnecessary and only increases the price level. b. Incorrect. This result occurs over time because competition among unemployed workers reduces the wage rate, and not because of government actions. c. Corr ...
Module20
... 1. The high cost—in terms of unemployment—of a recessionary gap and the future adverse consequences of an inflationary gap lead many economists to advocate active stabilization policy: using fiscal or monetary policy to offset demand shocks. There can be drawbacks, however, because such policies may ...
... 1. The high cost—in terms of unemployment—of a recessionary gap and the future adverse consequences of an inflationary gap lead many economists to advocate active stabilization policy: using fiscal or monetary policy to offset demand shocks. There can be drawbacks, however, because such policies may ...
Significance of Keynesian Legacy
... (3) Fluctuations of investment cause the fluctuations of the effective demand, which feed back to the investment fluctuations through the investment function and money market. These interaction between investment and effective demand causes the endogenous business cycle. (4) At almost every phase of ...
... (3) Fluctuations of investment cause the fluctuations of the effective demand, which feed back to the investment fluctuations through the investment function and money market. These interaction between investment and effective demand causes the endogenous business cycle. (4) At almost every phase of ...
Macroeconomics: Events and Ideas
... The accompanying diagram replicates Figure 33-3 for the 1990–2000 period. It was fortunate that defense spending fell and the budget deficit declined during this period because additional spending at a time of strong growth (and low unemployment rates) is likely to have created inflationary pressure ...
... The accompanying diagram replicates Figure 33-3 for the 1990–2000 period. It was fortunate that defense spending fell and the budget deficit declined during this period because additional spending at a time of strong growth (and low unemployment rates) is likely to have created inflationary pressure ...
ECON 201 10074 - Western New Mexico University
... Note factors that produce movements along the aggregate demand curve. Describe factors that shift the aggregate demand curve. 2. Aggregate Supply and Supply Side Theories Derive the Short Run Aggregate Supply Curve Derive the Long Run Aggregate Supply Curve Examine Shifters of the Short Run Aggregat ...
... Note factors that produce movements along the aggregate demand curve. Describe factors that shift the aggregate demand curve. 2. Aggregate Supply and Supply Side Theories Derive the Short Run Aggregate Supply Curve Derive the Long Run Aggregate Supply Curve Examine Shifters of the Short Run Aggregat ...
Ch10.pps
... In 1936, John Maynard Keynes wrote The General Theory of Employment, Interest and Money. In it, he proposed a new way to analyze the economy, which he presented as an alternative to the classical theory. Keynes proposed that low aggregate demand is responsible for the low income and high unemploymen ...
... In 1936, John Maynard Keynes wrote The General Theory of Employment, Interest and Money. In it, he proposed a new way to analyze the economy, which he presented as an alternative to the classical theory. Keynes proposed that low aggregate demand is responsible for the low income and high unemploymen ...
A Test of Two Open-Economy Theories: Oil Price Rise and Italy
... financed by exports and, in the absence of growth, there is no relationship between imports and income. An increase in imports is an increase in supply of exports, either goods or assets. This shift in imports may alter the composition of output, but it does not create unemployment. For the monetari ...
... financed by exports and, in the absence of growth, there is no relationship between imports and income. An increase in imports is an increase in supply of exports, either goods or assets. This shift in imports may alter the composition of output, but it does not create unemployment. For the monetari ...
Problem Set 7
... a. An increase in government spending and an increase in taxes. b. An increase in government spending and a decrease in taxes. c. A decrease in government spending and an increase in taxes. d. A decrease in government spending and an decrease in taxes. 7. Evidence suggesting that prices and wages ar ...
... a. An increase in government spending and an increase in taxes. b. An increase in government spending and a decrease in taxes. c. A decrease in government spending and an increase in taxes. d. A decrease in government spending and an decrease in taxes. 7. Evidence suggesting that prices and wages ar ...
Company Name - University of Wisconsin–La Crosse
... policy is the use of taxes, government transfers, or government purchases of goods and services to shift the aggregate demand curve. ...
... policy is the use of taxes, government transfers, or government purchases of goods and services to shift the aggregate demand curve. ...