N - Personal.psu.edu
... is thought to be relatively short. For example, once a tax cut becomes effective, households immediately have more disposable income and chance are good, they will spend it and thus, economic activity will rise quite quickly. For Monetary policy, the effectiveness lag is long and variable, with the ...
... is thought to be relatively short. For example, once a tax cut becomes effective, households immediately have more disposable income and chance are good, they will spend it and thus, economic activity will rise quite quickly. For Monetary policy, the effectiveness lag is long and variable, with the ...
lecture6_2006_hv
... Trade deficit increases in the short-run because the increase in real exports is less than the increase in real imports (based upon values of alphas!) Real GDP shoots above the base case value, so that there is a boom in the economy in the short-run. In the long-run, once the prices adjust completel ...
... Trade deficit increases in the short-run because the increase in real exports is less than the increase in real imports (based upon values of alphas!) Real GDP shoots above the base case value, so that there is a boom in the economy in the short-run. In the long-run, once the prices adjust completel ...
NBER WORKING PAPER SERIES TECHNOLOGY SHOCKS IN THE NEW KEYNESIAN MODEL
... estimated via maximum likelihood, points to these other shocks as being more important for explaining the behavior of output, inflation, and interest rates in the postwar United States data. These results weaken the links between the current generation of New Keynesian models and the real business c ...
... estimated via maximum likelihood, points to these other shocks as being more important for explaining the behavior of output, inflation, and interest rates in the postwar United States data. These results weaken the links between the current generation of New Keynesian models and the real business c ...
1 M.A.PART - I ECONOMIC PAPER
... is a counter part of MPS, both together constitute total additional income. Therefore, it is expressed as: MPC + MPS = 1 or MPS = 1 – MPC The Marginal Propensity to save can also be represented as: S MPS Y ...
... is a counter part of MPS, both together constitute total additional income. Therefore, it is expressed as: MPC + MPS = 1 or MPS = 1 – MPC The Marginal Propensity to save can also be represented as: S MPS Y ...
Macroeconomics Final Study Guide
... goods and services that one country sells to other countries and the value of the goods and services it buys in return exchange rates of two countries that are engaged in international trade national debt and the foreign debt ...
... goods and services that one country sells to other countries and the value of the goods and services it buys in return exchange rates of two countries that are engaged in international trade national debt and the foreign debt ...
chapter 3 – interdependence between major sectors
... Each bank has to ensure that it always has sufficient cash reserves available to provide for cash withdrawals, must provide for the claims of other banks, which may exceed its own claims. Confidence of creditors must be maintained. To maintain confidence in the banking system, the monetary authoriti ...
... Each bank has to ensure that it always has sufficient cash reserves available to provide for cash withdrawals, must provide for the claims of other banks, which may exceed its own claims. Confidence of creditors must be maintained. To maintain confidence in the banking system, the monetary authoriti ...
Article: Interest and inflation rates through the lens of the theory of
... Almost seven years have passed since the investment bank Lehman Brothers declared bankruptcy in the autumn of 2008 and the global financial crisis broke out with full force. The crisis brought with it the largest fall in GDP since the Great Depression of the 1930s. Moreover, the recovery after the c ...
... Almost seven years have passed since the investment bank Lehman Brothers declared bankruptcy in the autumn of 2008 and the global financial crisis broke out with full force. The crisis brought with it the largest fall in GDP since the Great Depression of the 1930s. Moreover, the recovery after the c ...
NBER WORKING PAPER SERIES OPTIMAL SIMPLE AND IMPLEMENTABLE MONETARY AND FISCAL RULES
... of view, neither of these two assumptions is particularly compelling for economies like the United States, it is of interest to investigate the characteristics of optimal policy in their absence. Last but not least, more often than not studies of optimal policy in models with nominal rigidities are ...
... of view, neither of these two assumptions is particularly compelling for economies like the United States, it is of interest to investigate the characteristics of optimal policy in their absence. Last but not least, more often than not studies of optimal policy in models with nominal rigidities are ...
8 - Weber State University
... A) real wages are fixed. B) nominal wages are renegotiated. C) nominal wages are fixed. D) raw materials prices are fixed. 8) Each SP curve is drawn assuming A) Pe as embodied in wage contracts is "fixed." B) Pe and prices are rigid. C) Pe and real wages are rigid. D) None of the above. 9) The slope ...
... A) real wages are fixed. B) nominal wages are renegotiated. C) nominal wages are fixed. D) raw materials prices are fixed. 8) Each SP curve is drawn assuming A) Pe as embodied in wage contracts is "fixed." B) Pe and prices are rigid. C) Pe and real wages are rigid. D) None of the above. 9) The slope ...
A Literature Survey with Special Reference to Theories of Inflation
... aggregate demand grows faster than the level of aggregate supply and “pulls” prices higher. But if firms’ costs increase continuously as in the cases of rising wages, interest rates, taxes, imported input prices, or exchange rates, then some economists prefer to use the term cost-push inflation to d ...
... aggregate demand grows faster than the level of aggregate supply and “pulls” prices higher. But if firms’ costs increase continuously as in the cases of rising wages, interest rates, taxes, imported input prices, or exchange rates, then some economists prefer to use the term cost-push inflation to d ...
Optimal Mane~ary Palicy and Sacrifice Ra~ia Jeffrey C. Fuhrer*
... ADF test statistic is not uniformly larger. For more discussion on the time-varying mean of inflation and the issue of the stationarity of the nominal variables in the model, see Fuhrer (1994). It is assumed for this paper, as in previous work, that inflation and interest rates are stationary and th ...
... ADF test statistic is not uniformly larger. For more discussion on the time-varying mean of inflation and the issue of the stationarity of the nominal variables in the model, see Fuhrer (1994). It is assumed for this paper, as in previous work, that inflation and interest rates are stationary and th ...
Economics Power Guide
... Rational agents have to consider the full economic cost of a decision Cost-benefit analysis is often intuitive and approximate Most people are not born with the ability to calculate costs and benefits without fail By studying economics, we can become better decision makers Gains from trade ...
... Rational agents have to consider the full economic cost of a decision Cost-benefit analysis is often intuitive and approximate Most people are not born with the ability to calculate costs and benefits without fail By studying economics, we can become better decision makers Gains from trade ...
Volume 69 No. 1, March 2006 Contents
... resource the most who bid the highest price and remain in ...
... resource the most who bid the highest price and remain in ...
Forecasting South African Inflation
... based on a variation of the Phillips curve in equation (1), where there is a significant role for the variables measuring the balance between aggregate demand and aggregate supply. An immediate problem of empirically implementing equation (1) in the South African context, however, is the lack of acc ...
... based on a variation of the Phillips curve in equation (1), where there is a significant role for the variables measuring the balance between aggregate demand and aggregate supply. An immediate problem of empirically implementing equation (1) in the South African context, however, is the lack of acc ...