NBER WORKING PAPER SERIES NEW-KEYNESIAN ECONOMICS: AN AS-AD VIEW Pierpaolo Benigno
... long run, prices are totally flexible and output depends only on real structural factors. The equation is vertical. In the short run, however, a fraction of firms keep prices fixed at a predetermined level, implying a positive relationship between other firms’ prices, which are not constrained, and ...
... long run, prices are totally flexible and output depends only on real structural factors. The equation is vertical. In the short run, however, a fraction of firms keep prices fixed at a predetermined level, implying a positive relationship between other firms’ prices, which are not constrained, and ...
1. Business cycles are: A) regular and predictable. B) irregular but
... C) lowers; but cannot affect D) lowers; and may also lower ...
... C) lowers; but cannot affect D) lowers; and may also lower ...
Y - McGraw Hill Higher Education
... Insufficient spending to support the normal level of production ...
... Insufficient spending to support the normal level of production ...
Some observations about the endogenous money theory
... monetary theory. The first formulation of this theory can be found in the works of Kaldor published in the 1970s. Taking these studies as a starting point, the post-keynesians elaborated two versions of the endogenous money theory which differ in their assumptions about the behaviour of the monetary ...
... monetary theory. The first formulation of this theory can be found in the works of Kaldor published in the 1970s. Taking these studies as a starting point, the post-keynesians elaborated two versions of the endogenous money theory which differ in their assumptions about the behaviour of the monetary ...
22 Appendix
... ALL RIGHTS RESERVED. Instructors of classes adopting EXPLORING ECONOMICS, 3rd Edition by Robert L. Sexton as an assigned textbook may reproduce material from this publication for classroom use or in a secure electronic network environment that prevents downloading or reproducing the copyrighted mate ...
... ALL RIGHTS RESERVED. Instructors of classes adopting EXPLORING ECONOMICS, 3rd Edition by Robert L. Sexton as an assigned textbook may reproduce material from this publication for classroom use or in a secure electronic network environment that prevents downloading or reproducing the copyrighted mate ...
Endogenous Government Spending and Fiscal Stimulus
... moderate recession, since the aggressive fiscal expansion is usually given under the exceptional circumstances, but not for more normal fluctuations. Therefore, both the timing and size of the fiscal expansion depend on the current state of the economy, it would be misleading to talk about multiplie ...
... moderate recession, since the aggressive fiscal expansion is usually given under the exceptional circumstances, but not for more normal fluctuations. Therefore, both the timing and size of the fiscal expansion depend on the current state of the economy, it would be misleading to talk about multiplie ...
Principles of Economics, Case and Fair,9e
... fine-tuning The phrase used by Walter Heller to refer to the government’s role in regulating inflation and unemployment. stagflation A situation of both high inflation and high unemployment. ...
... fine-tuning The phrase used by Walter Heller to refer to the government’s role in regulating inflation and unemployment. stagflation A situation of both high inflation and high unemployment. ...
the disappointment of expectations
... The importance of these shifts is best conveyed by Shackle’s invitation to think of the former curve as “a tree-branch in a gale, sweeping up and down with the gusts of politics and of the emerging consequences of past action”, and of the latter curve as “a thread floating in a gusty wind, continual ...
... The importance of these shifts is best conveyed by Shackle’s invitation to think of the former curve as “a tree-branch in a gale, sweeping up and down with the gusts of politics and of the emerging consequences of past action”, and of the latter curve as “a thread floating in a gusty wind, continual ...
What has Happened to Monetarism? An Investigation into the
... rather strong roots in the Cambridge cash balance tradition as developed by Marshall ([1923] 1960), Pigou (1917-8), and Keynes (1923), but also borrowed important insights from Keynes's (1930, 1936) liquidity preference theory. Friedman himself made the "Cambridge connection" more and more explicit ...
... rather strong roots in the Cambridge cash balance tradition as developed by Marshall ([1923] 1960), Pigou (1917-8), and Keynes (1923), but also borrowed important insights from Keynes's (1930, 1936) liquidity preference theory. Friedman himself made the "Cambridge connection" more and more explicit ...
Ch 12
... – Spending by businesses on things such as machines and buildings, which can be used to produce goods and services in the future – The investment part of real GDP is the portion that will be used in the process of producing goods in the future ...
... – Spending by businesses on things such as machines and buildings, which can be used to produce goods and services in the future – The investment part of real GDP is the portion that will be used in the process of producing goods in the future ...
Stone2eCT_CH10_Mac_Layout 1
... spending includes such programs as Social Security, Medicare, and interest on the national debt. Discretionary fiscal policy: Involves adjusting government spending and tax policies with the express short-run goal of moving the economy toward full employment, expanding economic growth, or controllin ...
... spending includes such programs as Social Security, Medicare, and interest on the national debt. Discretionary fiscal policy: Involves adjusting government spending and tax policies with the express short-run goal of moving the economy toward full employment, expanding economic growth, or controllin ...
Y - IS MU
... negative slope because P (M/P ) r I Y expansionary fiscal policy shifts IS curve right, raises income, and shifts AD curve right. expansionary monetary policy shifts LM curve right, raises income, and shifts AD curve right. IS or LM shocks shift the AD curve. CHAPTER 11 ...
... negative slope because P (M/P ) r I Y expansionary fiscal policy shifts IS curve right, raises income, and shifts AD curve right. expansionary monetary policy shifts LM curve right, raises income, and shifts AD curve right. IS or LM shocks shift the AD curve. CHAPTER 11 ...
Aggregate Expenditure and Equilibrium Output
... • The multiplier of autonomous investment describes the impact of an initial increase in planned investment on production, income, consumption spending, and equilibrium income. • The size of the multiplier depends on the slope of the planned aggregate expenditure line. ...
... • The multiplier of autonomous investment describes the impact of an initial increase in planned investment on production, income, consumption spending, and equilibrium income. • The size of the multiplier depends on the slope of the planned aggregate expenditure line. ...
Boundless Study Slides
... • fiscal policy Government policy that attempts to influence the direction of the economy through changes in government spending or taxes. • gold standard A monetary system where the value of circulating money is linked to the value of gold. • Keynesian Of or pertaining to an economic theory based o ...
... • fiscal policy Government policy that attempts to influence the direction of the economy through changes in government spending or taxes. • gold standard A monetary system where the value of circulating money is linked to the value of gold. • Keynesian Of or pertaining to an economic theory based o ...
Expenditure & Equilibrium Output
... If firms react to unplanned inventory reductions by increasing output, an economy with planned spending greater than output will adjust to equilibrium, with Y higher than before. If planned spending is less than output, there will be unplanned increases in inventories. In this case, firms will respo ...
... If firms react to unplanned inventory reductions by increasing output, an economy with planned spending greater than output will adjust to equilibrium, with Y higher than before. If planned spending is less than output, there will be unplanned increases in inventories. In this case, firms will respo ...
Does investment call the tune? Empirical evidence and
... mas R. Malthus, and Simonde de Sismondi. These authors attributed downturns in business activity to economic circumstances, that is, to endogenous factors (Mitchell, 1927: Ch. 1). “General gluts” would occur because purchasing power available in society is not sufficient to buy the output produced, ...
... mas R. Malthus, and Simonde de Sismondi. These authors attributed downturns in business activity to economic circumstances, that is, to endogenous factors (Mitchell, 1927: Ch. 1). “General gluts” would occur because purchasing power available in society is not sufficient to buy the output produced, ...
Mankiw 5/e Chapter 11: Aggregate Demand II
... The large fall in r raises investment expenditure much, and this raises output much. (This is hard to show graphically, because f affects shift ...
... The large fall in r raises investment expenditure much, and this raises output much. (This is hard to show graphically, because f affects shift ...
The Effects of Fiscal Policy on Consumption and
... some of the initial puzzles of RBC models can be resolved by the inclusion of additional sources of shocks. However, Galı́ (1999) argues that, even if the model can replicate the unconditional moments of the data, it may provide a distorted picture of the economy’s response to each of the shocks. We ...
... some of the initial puzzles of RBC models can be resolved by the inclusion of additional sources of shocks. However, Galı́ (1999) argues that, even if the model can replicate the unconditional moments of the data, it may provide a distorted picture of the economy’s response to each of the shocks. We ...
The characteristics of a monetary economy: a Keynes
... what could be done even in their absence. The objective of this paper is to elaborate an alternative monetary theory to the mainstream one, capable of supporting the thesis of money non-neutrality on the grounds of the arguments developed by Keynes and Schumpeter. This theory will be formulated star ...
... what could be done even in their absence. The objective of this paper is to elaborate an alternative monetary theory to the mainstream one, capable of supporting the thesis of money non-neutrality on the grounds of the arguments developed by Keynes and Schumpeter. This theory will be formulated star ...
Chapter 16 Macroeconomic Policy in an open economy
... supply curve. This intersection determines the equilibrium price level and output for the economy. Increases (decreases) in aggregate demand or aggregate supply result in rightward (leftward) shifts in these curves. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplica ...
... supply curve. This intersection determines the equilibrium price level and output for the economy. Increases (decreases) in aggregate demand or aggregate supply result in rightward (leftward) shifts in these curves. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplica ...
Slide
... expenditure is equal to aggregate output. planned aggregate expenditure (AE) The total amount the economy plans to spend in a given period. Equal to consumption plus planned investment: AE ≡ C + I. Because AE is, by definition, C + I, equilibrium can also be written: Equilibrium: Y = C + I Y>C+I agg ...
... expenditure is equal to aggregate output. planned aggregate expenditure (AE) The total amount the economy plans to spend in a given period. Equal to consumption plus planned investment: AE ≡ C + I. Because AE is, by definition, C + I, equilibrium can also be written: Equilibrium: Y = C + I Y>C+I agg ...
C - MyWeb
... an economy with planned spending greater than output will adjust to equilibrium, with Y higher than before. If planned spending is less than output, there will be unplanned increases in inventories. In this case, firms will respond by reducing output. As output falls, income falls, consumption falls ...
... an economy with planned spending greater than output will adjust to equilibrium, with Y higher than before. If planned spending is less than output, there will be unplanned increases in inventories. In this case, firms will respond by reducing output. As output falls, income falls, consumption falls ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... price indexes for consumer and producer goods, prices of industrial commodities and raw materials traded in organized auction markets continued to show high sensitivity to business cycles, often turning down early in slowdowns as ...
... price indexes for consumer and producer goods, prices of industrial commodities and raw materials traded in organized auction markets continued to show high sensitivity to business cycles, often turning down early in slowdowns as ...
Document
... A. will persist when the reduction in output is caused by a reduction in aggregate demand. B. will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand. C. will likely be temporary. D. is a signal of demand-pull inflation. ...
... A. will persist when the reduction in output is caused by a reduction in aggregate demand. B. will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand. C. will likely be temporary. D. is a signal of demand-pull inflation. ...
The profit investment nexus Michael Roberts
... Source: BEA NIPA, author’s calculations Economists at investment bank, JP Morgan also found that “at least three-quarters of the investment decline can be thought of as a historically typical drop given the behaviour of profits and GDP at the end of 2008. Problems in the credit markets may have play ...
... Source: BEA NIPA, author’s calculations Economists at investment bank, JP Morgan also found that “at least three-quarters of the investment decline can be thought of as a historically typical drop given the behaviour of profits and GDP at the end of 2008. Problems in the credit markets may have play ...