AP® Macroeconomics: Syllabus 1
... GDP measures the total output from factors of production (resources) located within the country (some factors may be owned by overseas residents). Gross national product (GNP) measures the total output from factors of production owned by the country’s residents, so it includes income from overseas a ...
... GDP measures the total output from factors of production (resources) located within the country (some factors may be owned by overseas residents). Gross national product (GNP) measures the total output from factors of production owned by the country’s residents, so it includes income from overseas a ...
MACROECONOMIC POLICIES - Oman College of Management
... reduces which thereby reduces the supply of money or credit in the economy. When money supply reduces it reduces the purchasing power and thereby curtailing consumption and lowering prices. ...
... reduces which thereby reduces the supply of money or credit in the economy. When money supply reduces it reduces the purchasing power and thereby curtailing consumption and lowering prices. ...
Document
... Net taxes affect aggregate spending indirectly by changing disposable income, which in turn changes consumption In our discussion of the circular flow that by subtracting net taxes, we transform real GDP into disposable income ...
... Net taxes affect aggregate spending indirectly by changing disposable income, which in turn changes consumption In our discussion of the circular flow that by subtracting net taxes, we transform real GDP into disposable income ...
Monetarists and Keynesians—The Great Debate
... In Chapter 10, you were introduced to J.M. Keynes’s theories dealing with fiscal policies. Keynesian supporters turn the quantity theory around on the monetarists by arguing that changes in GDP cause changes in the money supply. Suppose consumers decide to borrow more because they are optimistic tha ...
... In Chapter 10, you were introduced to J.M. Keynes’s theories dealing with fiscal policies. Keynesian supporters turn the quantity theory around on the monetarists by arguing that changes in GDP cause changes in the money supply. Suppose consumers decide to borrow more because they are optimistic tha ...
DOC - World bank documents
... The new Government of Maldives faces the challenge of urgently reducing an unsustainable fiscal deficit while managing the macroeconomic consequences of the global financial crisis. In the absence of any adjustment, the fiscal deficit is expected to reach nearly 33 percent of GDP in 2009. A crisis-i ...
... The new Government of Maldives faces the challenge of urgently reducing an unsustainable fiscal deficit while managing the macroeconomic consequences of the global financial crisis. In the absence of any adjustment, the fiscal deficit is expected to reach nearly 33 percent of GDP in 2009. A crisis-i ...
Recitation Material - Matthew H. Shapiro
... Consumption, Investment, Government Expenditure, Net Exports 2. (3 pts) What is crowding out, and how is it caused by expansionary fiscal policy? Crowding out is the decrease in investment that results from decrease in public savings/expansionary fiscal policy. With expansionary fiscal policy, the p ...
... Consumption, Investment, Government Expenditure, Net Exports 2. (3 pts) What is crowding out, and how is it caused by expansionary fiscal policy? Crowding out is the decrease in investment that results from decrease in public savings/expansionary fiscal policy. With expansionary fiscal policy, the p ...
ECONOMICS - University of Maryland, College Park
... Equilibrium GDP and Employment • It is possible to have a short-run equilibrium and yet have abnormally high unemployment: – Aggregate expenditure is too low to create an intersection at full-employment output – Cyclical unemployment is caused by insufficient spending – As long as spending remains ...
... Equilibrium GDP and Employment • It is possible to have a short-run equilibrium and yet have abnormally high unemployment: – Aggregate expenditure is too low to create an intersection at full-employment output – Cyclical unemployment is caused by insufficient spending – As long as spending remains ...
How do fiscal shocks affect the macroeconomic
... methodology which combines institutional information and SVAR analysis. This is also the approach taken in this paper and is discussed further in the following sections. Following the divergences in theoretical and methodological approaches, the existing empirical evidence on the effects of fiscal ...
... methodology which combines institutional information and SVAR analysis. This is also the approach taken in this paper and is discussed further in the following sections. Following the divergences in theoretical and methodological approaches, the existing empirical evidence on the effects of fiscal ...
Document
... foreign goods or real exchange rate, R, also alter equilibrium income and the current account. – The domestic real appreciation shown in Figure 14.6 reduces income and moves the current account toward a deficit. • In other words, if domestic goods become relatively more expensive, demand shifts to i ...
... foreign goods or real exchange rate, R, also alter equilibrium income and the current account. – The domestic real appreciation shown in Figure 14.6 reduces income and moves the current account toward a deficit. • In other words, if domestic goods become relatively more expensive, demand shifts to i ...
Business Cycle
... – The economy stops growing (reached the top) – GDP reaches maximum – Businesses can’t produce any more or hire more people – Cycle begins to contract ...
... – The economy stops growing (reached the top) – GDP reaches maximum – Businesses can’t produce any more or hire more people – Cycle begins to contract ...
The case of Argentina-UNICEF-Haiti relation for measuring public
... the activities. The learning dynamic throughout the process focus on experience beyond pure theoretical or technical knowledge. Adaptation to the Haitian context was also crucial in this process. Each partner offered different kinds of resources: financial, technical and symbolic, such as prestige o ...
... the activities. The learning dynamic throughout the process focus on experience beyond pure theoretical or technical knowledge. Adaptation to the Haitian context was also crucial in this process. Each partner offered different kinds of resources: financial, technical and symbolic, such as prestige o ...
Business Cycle
... – The economy stops growing (reached the top) – GDP reaches maximum – Businesses can’t produce any more or hire more people – Cycle begins to contract ...
... – The economy stops growing (reached the top) – GDP reaches maximum – Businesses can’t produce any more or hire more people – Cycle begins to contract ...
Suppose that the economy is in a long
... Suppose that the economy is in a long-run equilibrium. a. Draw a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate supply. b. Now suppose that a stock-market crash causes aggregate demand to fall. Use your diagram to ...
... Suppose that the economy is in a long-run equilibrium. a. Draw a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate supply. b. Now suppose that a stock-market crash causes aggregate demand to fall. Use your diagram to ...
AP Economic ELO’s businesses.
... 2. Be able to explain the basic principles of the U. S. free enterprise system. 3. Be able to explain how government actions affect the way companies deal with economic growth and decline. 4. Students should be able to understand how supply and demand affect society, 5. Be able to compare the free e ...
... 2. Be able to explain the basic principles of the U. S. free enterprise system. 3. Be able to explain how government actions affect the way companies deal with economic growth and decline. 4. Students should be able to understand how supply and demand affect society, 5. Be able to compare the free e ...
File
... •The capacity comes from the government control of the budget; the responsibility derives form the imperative of maintaining social order. •Under conditions of large-scale unemployment, Keynes argued, there is no barrier to the increased supply of goods; equally so, there is a ‘notational’ demand o ...
... •The capacity comes from the government control of the budget; the responsibility derives form the imperative of maintaining social order. •Under conditions of large-scale unemployment, Keynes argued, there is no barrier to the increased supply of goods; equally so, there is a ‘notational’ demand o ...
Fiscal Policy Design in Greece in the Aftermath of the Crisis: An Algorithmic Approach
... moreover, the time path of the instruments is such that we have an immediate adjustment of the system; that is, if the policy rule is implemented in period t, the targets are met in period t + 1 (and all subsequent periods). The main disadvantage of our approach stems from the linear and determinist ...
... moreover, the time path of the instruments is such that we have an immediate adjustment of the system; that is, if the policy rule is implemented in period t, the targets are met in period t + 1 (and all subsequent periods). The main disadvantage of our approach stems from the linear and determinist ...
Circular flow model
... • Expansion = Positive growth in Real GDP, employment of resources rises as does the general price level • Peak= Cycles maximum real GDP, and marks the end of expansion, unemployment of resources has fallen substantially and general prices may be rising rapidly • Contraction = Following the peak, ec ...
... • Expansion = Positive growth in Real GDP, employment of resources rises as does the general price level • Peak= Cycles maximum real GDP, and marks the end of expansion, unemployment of resources has fallen substantially and general prices may be rising rapidly • Contraction = Following the peak, ec ...
Fundamental Determinants of the Effects of Fiscal Policy
... Increase in R&D spending to GDP from 2.5 to 3 percent by 2010; TFP elasticity to R&D spending in the middle of existing estimates. ...
... Increase in R&D spending to GDP from 2.5 to 3 percent by 2010; TFP elasticity to R&D spending in the middle of existing estimates. ...
National-Income Accounting
... GDP per capita is total GDP divided by total population–average GDP. GDP per capita is commonly used as a measure of a country’s standard of living. However, it is not always an accurate ...
... GDP per capita is total GDP divided by total population–average GDP. GDP per capita is commonly used as a measure of a country’s standard of living. However, it is not always an accurate ...
Figure 15-2
... Figure 15-3 Ratio of Personal Saving to Disposable Personal Income (S/YD), Averages over Business Cycles, 1898–2001 ...
... Figure 15-3 Ratio of Personal Saving to Disposable Personal Income (S/YD), Averages over Business Cycles, 1898–2001 ...
INTERNATIONAL FINANCE
... II. Problems (50 credits) 1. Assume country A prohibits any kind of capital flows across its borders. Draw the BP curve for country A. If the government expands its spending and cut tax rates, what effects will have on the aggregate output in such an environment? (8 credits) ...
... II. Problems (50 credits) 1. Assume country A prohibits any kind of capital flows across its borders. Draw the BP curve for country A. If the government expands its spending and cut tax rates, what effects will have on the aggregate output in such an environment? (8 credits) ...
Keynesian Model
... economists believed that prices, wages and interest rates would adjust "as if led by an invisible hand" to return the economy to full employment and economic growth. The tide turned as John Maynard Keynes led a revolution in macroeconomic thought that began with his book, General Theory of Employmen ...
... economists believed that prices, wages and interest rates would adjust "as if led by an invisible hand" to return the economy to full employment and economic growth. The tide turned as John Maynard Keynes led a revolution in macroeconomic thought that began with his book, General Theory of Employmen ...
Greening Macroeconomics
... • Portugal government-led transition from fossil fuels towards renewable power, with the percentage of renewable supply in Portugal’s grid up from 17 percent in 2005 to 45 percent in 2010. • $22 billion investment in modernizing electrical grid and developing wind and hydropower facilities. • Portug ...
... • Portugal government-led transition from fossil fuels towards renewable power, with the percentage of renewable supply in Portugal’s grid up from 17 percent in 2005 to 45 percent in 2010. • $22 billion investment in modernizing electrical grid and developing wind and hydropower facilities. • Portug ...