Supply-Side Economics
... • Problems with Laffer’s argument – First, those with high income got it by working hard,not slacking, so reduction in tax rates not likely to produce more work. – Second, those with very little income either don’t pay taxes or pay so little that little incentive can be expected – Third, many mature ...
... • Problems with Laffer’s argument – First, those with high income got it by working hard,not slacking, so reduction in tax rates not likely to produce more work. – Second, those with very little income either don’t pay taxes or pay so little that little incentive can be expected – Third, many mature ...
Macro 3.4- Classical vs. Keynesian
... “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again” ...
... “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again” ...
Macro 3.4- Classical vs. Keynesian
... “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again” ...
... “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again” ...
Measuring Unemployment Measuring Unemployment (cont.)
... exist, so not all unemployment can or should be eliminated. ...
... exist, so not all unemployment can or should be eliminated. ...
Economic Theory - Economics with Mr. Kotrodimos
... policies up until the beginning of the 1970s. Then Keynesian theory ran into trouble as unemployment and inflation began to rise together - a phenomenon known as stagflation . At this point another economist stepped in - Milton Friedman. He was known as a Monetarist, and along with a number of other ...
... policies up until the beginning of the 1970s. Then Keynesian theory ran into trouble as unemployment and inflation began to rise together - a phenomenon known as stagflation . At this point another economist stepped in - Milton Friedman. He was known as a Monetarist, and along with a number of other ...
History of Economic Thought - Your home for free Leaving Cert
... Manefesto” which incorrectly argued that the value of something was what was put into it; and that labour controlled the means of produc>on. We know that it is the intersec>on of demand and supply that determines the value (or price) of something and that is why entrepreneurs can make a loss. Al ...
... Manefesto” which incorrectly argued that the value of something was what was put into it; and that labour controlled the means of produc>on. We know that it is the intersec>on of demand and supply that determines the value (or price) of something and that is why entrepreneurs can make a loss. Al ...
Keynesian Economics
... "New classical macroeconomics" (NCM) uses the standard principles of economic analysis to understand how a nation's total output (gross domestic product, or GDP) is determined. In the NCM view supply and demand result from the actions of economically rational households and firms. Macroeconomic quan ...
... "New classical macroeconomics" (NCM) uses the standard principles of economic analysis to understand how a nation's total output (gross domestic product, or GDP) is determined. In the NCM view supply and demand result from the actions of economically rational households and firms. Macroeconomic quan ...
MODERN ECONOMICS - University of Hawaii
... If the interest rate rises, the demand for spendable money, as opposed to higher interest, non-spendable assets, falls. Hence, if we are to experience equilibrium, the supply must also fall, an event that occurs if income falls. ...
... If the interest rate rises, the demand for spendable money, as opposed to higher interest, non-spendable assets, falls. Hence, if we are to experience equilibrium, the supply must also fall, an event that occurs if income falls. ...
PowerPoint Presentation - Classical and Keynesian Macro
... Classical economists argue that dollars saved will be matched by business investment equally. ...
... Classical economists argue that dollars saved will be matched by business investment equally. ...
Economics final review questions part II.
... How are M1 and M2 different? How is the FED organized, and how does each part function? How does a lose money policy differ from a tight money policy? How does each monetary policy tool expand or shrink the money supply? What might the fed do to effect interest rates, and what is the main tool? Know ...
... How are M1 and M2 different? How is the FED organized, and how does each part function? How does a lose money policy differ from a tight money policy? How does each monetary policy tool expand or shrink the money supply? What might the fed do to effect interest rates, and what is the main tool? Know ...
Análise Econômica
... Keynesian theory tries to answer these questions. Gordon (1990) and Greenwald and Stiglitz (1993) identify some insights of the new Keynesian theory. Wage rigidity is explained by models related to disequilibrium in the labor market, such as efficiency wages, implicit contracts and insider-outsider ...
... Keynesian theory tries to answer these questions. Gordon (1990) and Greenwald and Stiglitz (1993) identify some insights of the new Keynesian theory. Wage rigidity is explained by models related to disequilibrium in the labor market, such as efficiency wages, implicit contracts and insider-outsider ...
Keynesian Economics
... unemployment—the price level will NOT fall. Instead what occurs is continued unemployment and reduced GDP • General economy wide equilibrium can occur and endure even if there is excess capacity • Capitalism is NOT a self-regulating system sustaining full employment • Attack “classical” view that ma ...
... unemployment—the price level will NOT fall. Instead what occurs is continued unemployment and reduced GDP • General economy wide equilibrium can occur and endure even if there is excess capacity • Capitalism is NOT a self-regulating system sustaining full employment • Attack “classical” view that ma ...
Lecture 13
... “When, and if, the next great depression comes along,” Mr. Samuelson wrote on the first page of the first edition, “any one of us may be completely unemployed — without income or prospects.” He added, “It is not too much to say that the widespread creation of dictatorships and the resulting World Wa ...
... “When, and if, the next great depression comes along,” Mr. Samuelson wrote on the first page of the first edition, “any one of us may be completely unemployed — without income or prospects.” He added, “It is not too much to say that the widespread creation of dictatorships and the resulting World Wa ...
ECON 8121-001 Ad vanced Monetary Theory
... Lateness in the papers will be tolerated but penalized (1 /3 of a letter grade off if handed in within one week late; 2/3 of a letter off if over one week late) . .I ...
... Lateness in the papers will be tolerated but penalized (1 /3 of a letter grade off if handed in within one week late; 2/3 of a letter off if over one week late) . .I ...
Chapter 9 - Foothill College
... pure Classical theorists would have a vertical AS curve that shows the same GDP (GDP*) associated with full-employment, at each price-level in the economy. B. Keynesian Theory holds that unemployment is the normal state of the economy and significant government intervention is required if employment ...
... pure Classical theorists would have a vertical AS curve that shows the same GDP (GDP*) associated with full-employment, at each price-level in the economy. B. Keynesian Theory holds that unemployment is the normal state of the economy and significant government intervention is required if employment ...
Module: 2103Y Economic Regulation Groups: 1001 and 1002
... 28. According to new classical aggregate supply hypothesis, work decisions of workers are assumed to be voluntary. Why? How does this statement contrast with Keynesian involuntary unemployment approach? 29. According to neoclassical theory, in which cases can the monetary policy have some effect on ...
... 28. According to new classical aggregate supply hypothesis, work decisions of workers are assumed to be voluntary. Why? How does this statement contrast with Keynesian involuntary unemployment approach? 29. According to neoclassical theory, in which cases can the monetary policy have some effect on ...
Slide 1
... • We begin in the short run at Y1, below the economy’s potential capacity (YF). There are 2 routes to long-run full-employment equilibrium: • Wait for both lower wages and resource prices to reduce costs (increasing supply to SRAS2). ...
... • We begin in the short run at Y1, below the economy’s potential capacity (YF). There are 2 routes to long-run full-employment equilibrium: • Wait for both lower wages and resource prices to reduce costs (increasing supply to SRAS2). ...
Monetarism Revisited - Research Showcase @ CMU
... Britain, the Radcliffe Committee did the same. Prominent economists like Nicholas Kaldor and Joan Robinson denied any role for money in inflation well into the 1980s. In the simple Keynesian models of the time, the government used fiscal policy to control aggregate output. The central bank's role, i ...
... Britain, the Radcliffe Committee did the same. Prominent economists like Nicholas Kaldor and Joan Robinson denied any role for money in inflation well into the 1980s. In the simple Keynesian models of the time, the government used fiscal policy to control aggregate output. The central bank's role, i ...
MGMT510 COURSE OUTLINE File - Faculty of Business and
... model of an open economy and the effects of Monetary and Fiscal policy and Random shocks. AIMS and OBJECTIVES : The primary goal of this course is to developed a general model of an open economy based on Keynesian assumptions which can be used to analyze the behaviour of fundamental macroeconomic va ...
... model of an open economy and the effects of Monetary and Fiscal policy and Random shocks. AIMS and OBJECTIVES : The primary goal of this course is to developed a general model of an open economy based on Keynesian assumptions which can be used to analyze the behaviour of fundamental macroeconomic va ...
Classical Theory - McGraw Hill Higher Education
... • The Great Depression was a stunning blow to Classical economists. • John Maynard Keynes provided an alternative to the classical theory. • Keynes argued that the Great Depression was not a unique event. • It would recur if reliance on the market to “self-adjust” continued. ...
... • The Great Depression was a stunning blow to Classical economists. • John Maynard Keynes provided an alternative to the classical theory. • Keynes argued that the Great Depression was not a unique event. • It would recur if reliance on the market to “self-adjust” continued. ...
CHAPTER 1 ECONOMIC ACTIVITY IN CONTEXT
... 3. living standards growth, stability and security, sustainability 4. economic development 5. economic, living standards 6. the business cycle 7. sustainability 8. classical economics 9. John Maynard Keynes 10. monetarist economics 11. False. They are studied in Macroeconomics. 12. False. Economic g ...
... 3. living standards growth, stability and security, sustainability 4. economic development 5. economic, living standards 6. the business cycle 7. sustainability 8. classical economics 9. John Maynard Keynes 10. monetarist economics 11. False. They are studied in Macroeconomics. 12. False. Economic g ...
Keynes v Monetarist Keynote
... 4. Effective monetary policy requires the adoption of a system of monetary base control, as well as a ‘monetary rule’ (where the annual rate of allowable monetary growth is equal to the expected rise in real output) with a view of influencing expectations in a downward direction. 5. Reduction of Gov ...
... 4. Effective monetary policy requires the adoption of a system of monetary base control, as well as a ‘monetary rule’ (where the annual rate of allowable monetary growth is equal to the expected rise in real output) with a view of influencing expectations in a downward direction. 5. Reduction of Gov ...
Aggregate demand
... These slides will take you through the basics of incomeexpenditure analysis. The following is based on Dornbusch & Fisher, Chapter 3 (on reserve) ...
... These slides will take you through the basics of incomeexpenditure analysis. The following is based on Dornbusch & Fisher, Chapter 3 (on reserve) ...
Sec 2.2 Review Questions
... The government spends $3 billion on police cars. Explain why aggregate demand might increase by more than $3 billion. Economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. Calculate the multiplier, MPW, and MPC. By ho ...
... The government spends $3 billion on police cars. Explain why aggregate demand might increase by more than $3 billion. Economists observe that an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. Calculate the multiplier, MPW, and MPC. By ho ...