Haberler, the League of Nations, and the Quest for
... inability to realize this. Furthermore, Kahn found “remarkable that you pay so little attention to Mr Keynes’ theory of what determines the amount of output and employment... Nowhere in your analysis is there any suggestion that the sole direct cause of fluctuations in employment may be fluctuations ...
... inability to realize this. Furthermore, Kahn found “remarkable that you pay so little attention to Mr Keynes’ theory of what determines the amount of output and employment... Nowhere in your analysis is there any suggestion that the sole direct cause of fluctuations in employment may be fluctuations ...
1 Principles of Macroeconomics, 9e
... 57) Refer to Figure 8.3. Which of the following statements is FALSE? A) Aggregate saving is negative for all income levels below $400 billion. B) For all aggregate income levels above $200 billion, aggregate consumption is less than aggregate income. C) If consumption is the only expenditure, this e ...
... 57) Refer to Figure 8.3. Which of the following statements is FALSE? A) Aggregate saving is negative for all income levels below $400 billion. B) For all aggregate income levels above $200 billion, aggregate consumption is less than aggregate income. C) If consumption is the only expenditure, this e ...
Appendix I Saving Behavior in Thailand: Macroeconomic Evidence
... While real interest rates have negative effects on aggregate savings, corporate savings and government savings but not on household saving. ...
... While real interest rates have negative effects on aggregate savings, corporate savings and government savings but not on household saving. ...
Economics
... agriculture, in minerals, or in labour – development economists thus promoted a dynamic diversification of an economy. This still appropriate, albeit already then somewhat ‘heterodox’ approach implied an active role of the state in changing the economic structure by generating and re-allocating rent ...
... agriculture, in minerals, or in labour – development economists thus promoted a dynamic diversification of an economy. This still appropriate, albeit already then somewhat ‘heterodox’ approach implied an active role of the state in changing the economic structure by generating and re-allocating rent ...
The Sraffian Supermultiplier - Instituto de Economia
... lot more than the European has. And that is not a coincidence! If the Europeans had a lot more people looking for jobs , there would be more jobs". ( Arrow , 1989, p. 175-176). Notice that Arrow is talking about two distinct 'stylized facts' (and their common neoclassical explanation). The first rel ...
... lot more than the European has. And that is not a coincidence! If the Europeans had a lot more people looking for jobs , there would be more jobs". ( Arrow , 1989, p. 175-176). Notice that Arrow is talking about two distinct 'stylized facts' (and their common neoclassical explanation). The first rel ...
Chapter 7 - Dr. George Fahmy
... constant at P0 A positive GDP gap––one where real GDP is below potential GDP––is now identified as a recessionary gap. The distance Y1 – y* in Fig. 7-1 is a recessionary gap when y* is specified as the full-employment level of output and aggregate demand is AD1. An inflationary gap exists when there ...
... constant at P0 A positive GDP gap––one where real GDP is below potential GDP––is now identified as a recessionary gap. The distance Y1 – y* in Fig. 7-1 is a recessionary gap when y* is specified as the full-employment level of output and aggregate demand is AD1. An inflationary gap exists when there ...
Aggregate Demand and Supply Aggregate Demand and
... of economics was Adam Smith. Exhibit 5 uses the aggregate demand and supply model to illustrate the classical view that the aggregate supply curve, AS, is a vertical line at the full-employment output of $10 trillion. The vertical shape of the classical aggregate supply curve is based on two assumpt ...
... of economics was Adam Smith. Exhibit 5 uses the aggregate demand and supply model to illustrate the classical view that the aggregate supply curve, AS, is a vertical line at the full-employment output of $10 trillion. The vertical shape of the classical aggregate supply curve is based on two assumpt ...
In‡ation Targeting: Is the NKM …t for purpose? Peter N. Smith and
... …xed proportion to output then substitutability between factors is not possible. In this case, its marginal product is …xed and so its marginal cost, and hence the price of the good, will increase. Output will then fall which will reduce the demand for all factors. In practice, in the short run, all ...
... …xed proportion to output then substitutability between factors is not possible. In this case, its marginal product is …xed and so its marginal cost, and hence the price of the good, will increase. Output will then fall which will reduce the demand for all factors. In practice, in the short run, all ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS AND EXPECTATION DYNAMICS:
... The practical importance of the zero lower bound (ZLB) has become evident in the US and Europe since the 2007-9 …nancial crisis, as well as in the US during 2001-3 and in Japan since the mid 1990s.1 Recently Bullard (2010) has stressed the risk of extended periods of de‡ation. These events have led ...
... The practical importance of the zero lower bound (ZLB) has become evident in the US and Europe since the 2007-9 …nancial crisis, as well as in the US during 2001-3 and in Japan since the mid 1990s.1 Recently Bullard (2010) has stressed the risk of extended periods of de‡ation. These events have led ...
keynesian and new(keynesian models: the impact of military
... From a theoretical point of view, we assume a standard Dynamic Stochastic General Equilibrium Model (DSGE) with an economy with sticky prices and limited asset market participation. Moreover, we assume the existence of a …scal policy authority that purchases consumption goods (divided in spending fo ...
... From a theoretical point of view, we assume a standard Dynamic Stochastic General Equilibrium Model (DSGE) with an economy with sticky prices and limited asset market participation. Moreover, we assume the existence of a …scal policy authority that purchases consumption goods (divided in spending fo ...
Week 17 - Lancaster University
... e. The government budget deficit Flow. The deficit is the government’s spending less its receipts. Spending and receipts are measured per unit of time, such as a year or quarter. f. The quantity of outstanding government debt on 1 January 2003 Stock. The quantity of government debt outstanding is me ...
... e. The government budget deficit Flow. The deficit is the government’s spending less its receipts. Spending and receipts are measured per unit of time, such as a year or quarter. f. The quantity of outstanding government debt on 1 January 2003 Stock. The quantity of government debt outstanding is me ...
Money and the Transmission Mechanism in the Optimizing IS
... between IS-LM type models and maximizing models…” See also footnote 6 below. ...
... between IS-LM type models and maximizing models…” See also footnote 6 below. ...
The Government and Fiscal Policy
... consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium the value of autonomous consumption is • A) $400 billion. • B) $300 billion. • C) $100 billion. • D) $200 billion ...
... consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium the value of autonomous consumption is • A) $400 billion. • B) $300 billion. • C) $100 billion. • D) $200 billion ...
1 Principles of Macroeconomics, 9e
... 3) The problem with the traditional macroeconomic treatment of expectations of inflation is that A) the model is not consistent with the microeconomic assumption that individuals are rational, forward-looking people. B) the model assumes that individuals will merely guess at what the inflation rate ...
... 3) The problem with the traditional macroeconomic treatment of expectations of inflation is that A) the model is not consistent with the microeconomic assumption that individuals are rational, forward-looking people. B) the model assumes that individuals will merely guess at what the inflation rate ...
The Modern Macroeconomic Debate
... Markets unleash individual initiative, increase supply, and bring about growth. But markets create recessions too. ...
... Markets unleash individual initiative, increase supply, and bring about growth. But markets create recessions too. ...
1. Introduction
... relatively brief upward trend over the mid-1990s, the saving rate started to decline during the penultimate years of the investment boom, which continued during the subsequent investment slump. The weakening of national saving has been associated with a parallel shift of the external current account ...
... relatively brief upward trend over the mid-1990s, the saving rate started to decline during the penultimate years of the investment boom, which continued during the subsequent investment slump. The weakening of national saving has been associated with a parallel shift of the external current account ...
Chapter 25 Aggregate Demand and Supply Analysis
... (a) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending. (b) a lower price level, holding the nominal quantity of money constant, leads to a larger quantit ...
... (a) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending. (b) a lower price level, holding the nominal quantity of money constant, leads to a larger quantit ...
Mankiw 5/e Chapter 10: Aggregate Demand I
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
The Government Transfer Multiplier
... Despite the focus on the government purchase multiplier in the literature (Woodford 2010, Christiano et al 2011, Cogan et al 2010), the majority of the increase in government spending during the global financial crisis was government transfers to households, not government purchases. According to Oh ...
... Despite the focus on the government purchase multiplier in the literature (Woodford 2010, Christiano et al 2011, Cogan et al 2010), the majority of the increase in government spending during the global financial crisis was government transfers to households, not government purchases. According to Oh ...
Document
... CHAPTER SUMMARY In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and ...
... CHAPTER SUMMARY In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and ...
- Rainer Maurer
... Change demand should lead 1929to an increase in 3,2savings, which reduce the ...
... Change demand should lead 1929to an increase in 3,2savings, which reduce the ...
Chapter 24: Aggregate Demand, Aggregate Supply, and Inflation
... The Aggregate Supply Curve: A Warning • When we draw a firm’s supply curve, we assume that input prices are constant. In macroeconomics, an increase in the overall price level means that at least some input prices will be rising as well. • The outputs of some firms are the inputs of other firms. ...
... The Aggregate Supply Curve: A Warning • When we draw a firm’s supply curve, we assume that input prices are constant. In macroeconomics, an increase in the overall price level means that at least some input prices will be rising as well. • The outputs of some firms are the inputs of other firms. ...
SAVING IS THE ACCOUNTING RECORD OF INVESTMENT
... Consider the “hat check theory of money”. Suppose tokens given out in the check room of a leading opera house came to circulate as the money supply. Individuals would then demand to hold tokens as a function of their income, wealth, and relative interest rates. But the total quantity of tokens in ex ...
... Consider the “hat check theory of money”. Suppose tokens given out in the check room of a leading opera house came to circulate as the money supply. Individuals would then demand to hold tokens as a function of their income, wealth, and relative interest rates. But the total quantity of tokens in ex ...
By How Much Does GDP Rise If the Government Buys More Output?
... the government purchases enter preferences in a separable fashion: they do not affect households’ marginal rate of substitution between consumption and work or between consumption this year and in any future year. Military spending is the obvious example. If instead the government provided consumers ...
... the government purchases enter preferences in a separable fashion: they do not affect households’ marginal rate of substitution between consumption and work or between consumption this year and in any future year. Military spending is the obvious example. If instead the government provided consumers ...
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... down in the real world. In fact, it can not be excluded that potential output had been overestimated in the boom-period before the financial crisis. An other important feature of the Secular Stagnation debate is the possibility of excess savings that would require real interest rates to be very low ...
... down in the real world. In fact, it can not be excluded that potential output had been overestimated in the boom-period before the financial crisis. An other important feature of the Secular Stagnation debate is the possibility of excess savings that would require real interest rates to be very low ...