ECO 285 The Circular Flow Model
... • GDP = Income = C + I + G +(Ex-Im) • NBER business cycle page ...
... • GDP = Income = C + I + G +(Ex-Im) • NBER business cycle page ...
Keynesian Economics
... believe in what is called debt neutrality—the doctrine that substitutions of government borrowing for taxes have no effects on total demand (more on this below). 2. According to Keynesian theory, changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run impact ...
... believe in what is called debt neutrality—the doctrine that substitutions of government borrowing for taxes have no effects on total demand (more on this below). 2. According to Keynesian theory, changes in aggregate demand, whether anticipated or unanticipated, have their greatest short-run impact ...
Document
... Long-Run Equilibrium When all prices, including wages, have fully adjusted to previous shifts in aggregate supply or demand and the flow of spending, saving, borrowing and lending continues until something else changes ...
... Long-Run Equilibrium When all prices, including wages, have fully adjusted to previous shifts in aggregate supply or demand and the flow of spending, saving, borrowing and lending continues until something else changes ...
ECON 3080-004 Intermediate Macroeconomic Theory
... attention to policy. Intermediate Macroeconomic Theory is concerned with broad, economy-wide aggregates, such as the level of production, employment, unemployment, the general level of prices, and the distribution of income. Although the course may be taught with great emphasis on theoretical constr ...
... attention to policy. Intermediate Macroeconomic Theory is concerned with broad, economy-wide aggregates, such as the level of production, employment, unemployment, the general level of prices, and the distribution of income. Although the course may be taught with great emphasis on theoretical constr ...
Word Document
... FDR created programs designed to keep prices and wages high. In 1942 FDR set income tax rates above $25,000 at 100% by executive order. In the 1920’s Ms expanded by 40%, but the price level was stable because Md also increased. Milton Friedman pointed out that when you see unemployment high ...
... FDR created programs designed to keep prices and wages high. In 1942 FDR set income tax rates above $25,000 at 100% by executive order. In the 1920’s Ms expanded by 40%, but the price level was stable because Md also increased. Milton Friedman pointed out that when you see unemployment high ...
Parkin-Bade Chapter 24
... Figure 30.2 shows the government’s tax revenues, outlays, and budget balance as a percentage of GDP for the period 1980 to 2009. ...
... Figure 30.2 shows the government’s tax revenues, outlays, and budget balance as a percentage of GDP for the period 1980 to 2009. ...
Controversial Issues About the Recession and Recovery
... – U rate in July 81 or even Jan 80 started higher – Overall increase in 2007-09 is greater – Much more incidence this time of long-term unemployment and forced part-time ...
... – U rate in July 81 or even Jan 80 started higher – Overall increase in 2007-09 is greater – Much more incidence this time of long-term unemployment and forced part-time ...
Slide 5-1
... depends on the tastes of its consumers, which can be represented graphically by a series of indifference curves. Copyright © 2003 Pearson Education, Inc. ...
... depends on the tastes of its consumers, which can be represented graphically by a series of indifference curves. Copyright © 2003 Pearson Education, Inc. ...
Economics 259 Final Exam Fall 2014 Name: Before beginning the
... d. increases in government spending increase planned spending, but tax cuts reduce planned spending. e. tax cuts affect interest rates, but government spending does not 11. A liquidity trap occurs when: a. banks have too much currency and close their doors to new customers. b. the central bank mista ...
... d. increases in government spending increase planned spending, but tax cuts reduce planned spending. e. tax cuts affect interest rates, but government spending does not 11. A liquidity trap occurs when: a. banks have too much currency and close their doors to new customers. b. the central bank mista ...
Real Business Cycle Theory
... In the Keynesian rigid wage model a decline in the price level (caused by a leftward shift in the aggregate demand curve) will shift the labor demand curve to the left so that N 2 hours of labor are employed rather than N1 the amount used prior to the shift. We might call the initial position the f ...
... In the Keynesian rigid wage model a decline in the price level (caused by a leftward shift in the aggregate demand curve) will shift the labor demand curve to the left so that N 2 hours of labor are employed rather than N1 the amount used prior to the shift. We might call the initial position the f ...
Unemployment in Capitalist Economies
... effects. The real value of the national debt also goes up. If people believe this is not good, regardless of whether it matters or not, it may dampen business expectations and consumer confidence. Third, consideration of expectations also complicates the story. If these are one time decreases in pri ...
... effects. The real value of the national debt also goes up. If people believe this is not good, regardless of whether it matters or not, it may dampen business expectations and consumer confidence. Third, consideration of expectations also complicates the story. If these are one time decreases in pri ...
Europe and the United States: On the Fiscal Brink?
... the recession onset in 2008 in hard-hit countries—Spain, Ireland, and Greece (initially). One interpretation of this is that companies in these countries responded to the downturn by increasing their production efficiency. But a more straightforward explanation is that the more rapid productivity gr ...
... the recession onset in 2008 in hard-hit countries—Spain, Ireland, and Greece (initially). One interpretation of this is that companies in these countries responded to the downturn by increasing their production efficiency. But a more straightforward explanation is that the more rapid productivity gr ...
Rules of Origin under EPAs Niel Joubert tralac researcher
... Main objectives: to contribute to the maintenance of economic stability and sustainable economic growth The medium-term fiscal policy will be consistent with the Stability and Growth Pact ...
... Main objectives: to contribute to the maintenance of economic stability and sustainable economic growth The medium-term fiscal policy will be consistent with the Stability and Growth Pact ...
Chapter 3 The Simple Keynesian Theory of Income Determination
... 46) A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because A) each expenditure is respent in the same amount continuously. B) overtime expenditures tend to increase. C) total expenditures include autonomous expenditures. D) each time a ...
... 46) A $1 increase in autonomous spending has a multiplier effect greater than one on total expenditures and output because A) each expenditure is respent in the same amount continuously. B) overtime expenditures tend to increase. C) total expenditures include autonomous expenditures. D) each time a ...
chapter 2 Eco102
... Suppose that there are three final products of an economy: It goes through several (3) stages of production. Wheat value :700 final product Sales :200 The rest is used in the production of flour Flour value:800 final product Sales :150 The rest is used in the production of bread which ...
... Suppose that there are three final products of an economy: It goes through several (3) stages of production. Wheat value :700 final product Sales :200 The rest is used in the production of flour Flour value:800 final product Sales :150 The rest is used in the production of bread which ...
The Honorable John Engler
... of revenues – leaving discretionary spending a thing of the past. If we do not meet this challenge now, the future becomes ominous. Spending on government entitlement programs is projected to continue to grow faster than the economy over the next decade and beyond, more than offsetting projected dec ...
... of revenues – leaving discretionary spending a thing of the past. If we do not meet this challenge now, the future becomes ominous. Spending on government entitlement programs is projected to continue to grow faster than the economy over the next decade and beyond, more than offsetting projected dec ...
The Influence of Monetary and Fiscal Policy on Aggregate Demand
... expansionary fiscal policy increases income and thereby increases consumer expenditure Crowding-out effect on investment: offset in the AD that results when expansionary fiscal policy raises the interest rate and thereby reduces investment expenditure Crowding-out effect on NX: offset in the AD that ...
... expansionary fiscal policy increases income and thereby increases consumer expenditure Crowding-out effect on investment: offset in the AD that results when expansionary fiscal policy raises the interest rate and thereby reduces investment expenditure Crowding-out effect on NX: offset in the AD that ...
aggregate demand and
... supply at each price level might have been caused by improvements in technology and productivity or the effects of an increase in the active labour force. An inward shift in AS (from AS1 to AS3) causes a fall in supply at each price level. This might have been caused by higher unit wage costs, a fal ...
... supply at each price level might have been caused by improvements in technology and productivity or the effects of an increase in the active labour force. An inward shift in AS (from AS1 to AS3) causes a fall in supply at each price level. This might have been caused by higher unit wage costs, a fal ...
Conference Summary
... That is especially easy to do when measuring income equality strictly by the numbers, he said. The important measure, he argues, is a person’s standard of living. As one of the largest owners of low-income housing in the country, Richman offered unique insight into the life of the average low-wage w ...
... That is especially easy to do when measuring income equality strictly by the numbers, he said. The important measure, he argues, is a person’s standard of living. As one of the largest owners of low-income housing in the country, Richman offered unique insight into the life of the average low-wage w ...
Document
... 4) Suppose that you are an economist working for the central bank when droughts across the country substantially reduce food production. a. Use the Aggregate Demand-Aggregate Supply model to illustrate graphically your policy recommendation to accommodate this adverse supply shock, assuming that yo ...
... 4) Suppose that you are an economist working for the central bank when droughts across the country substantially reduce food production. a. Use the Aggregate Demand-Aggregate Supply model to illustrate graphically your policy recommendation to accommodate this adverse supply shock, assuming that yo ...
Christina D. Romer Hamilton College November 7, 2011 Tonight I
... very effective. If such observations were common, the studies might go very far astray. What David and I did was to bring in information on the motivation for tax changes. For every legislative tax change, up or down, there is a huge narrative record about why it was passed. This narrative record is ...
... very effective. If such observations were common, the studies might go very far astray. What David and I did was to bring in information on the motivation for tax changes. For every legislative tax change, up or down, there is a huge narrative record about why it was passed. This narrative record is ...
Binding the Hands of Government – a credible fiscal rule for the UK
... facing higher interest rates – and will do so for several years after, as it tries to regain credibility for price stability. However, running deficits can still lead to accidental increases in inflation, if not countered by the central bank. The deficits of the 1970s arguably over-stimulated the ec ...
... facing higher interest rates – and will do so for several years after, as it tries to regain credibility for price stability. However, running deficits can still lead to accidental increases in inflation, if not countered by the central bank. The deficits of the 1970s arguably over-stimulated the ec ...
Answer the following questions on business organizations
... 4. What are resources and how do they relate to goods and services, and scarcity? 5. What is economics? 6. What is opportunity cost? How is it different from a trade-off? 7. What are the three basic economic questions? 8. What are the four factors of production? What is the payment for each? 9. What ...
... 4. What are resources and how do they relate to goods and services, and scarcity? 5. What is economics? 6. What is opportunity cost? How is it different from a trade-off? 7. What are the three basic economic questions? 8. What are the four factors of production? What is the payment for each? 9. What ...