inflation
... Milton Friedman showed that people’s annual consumption is a function of their “permanent income,” a term he introduced as a measure of the average income people expect over a few years. Monetarist believe that price level depends on money supply Friedman stated that in the long run, increased monet ...
... Milton Friedman showed that people’s annual consumption is a function of their “permanent income,” a term he introduced as a measure of the average income people expect over a few years. Monetarist believe that price level depends on money supply Friedman stated that in the long run, increased monet ...
18. Fiscal Policy - Annenberg Learner
... RICHARD GILL: Well, it did seem to work, that is, get the country moving again. And it also seemed a proof of the Keynesian theory, which was pretty dominant among economists by the 1960s. In terms of our diagram, what the tax cut did was simply give more disposable income to consumers. It shifted t ...
... RICHARD GILL: Well, it did seem to work, that is, get the country moving again. And it also seemed a proof of the Keynesian theory, which was pretty dominant among economists by the 1960s. In terms of our diagram, what the tax cut did was simply give more disposable income to consumers. It shifted t ...
... In 2015, Cuba is set to post GDP growth of 4%, up from 1% in 2014 and fuelled by a 3.2% expansion in domestic household consumption. Domestic investment, another driver of the Cuban economy, is estimated to have grown by around 20% in a reversal of the negative rate (-4.9%) recorded in 2014. Public ...
Chapter 9
... increased spending. Prices may rise, causing inflation. If the flow of money and credit contracts too greatly, spending and business activity may dwindle, workers may lose their jobs, and a recession may result. As our nation's money manager, the Fed conducts monetary policy to attempt to balance th ...
... increased spending. Prices may rise, causing inflation. If the flow of money and credit contracts too greatly, spending and business activity may dwindle, workers may lose their jobs, and a recession may result. As our nation's money manager, the Fed conducts monetary policy to attempt to balance th ...
Next Generation Economy The Minnesota Perspective
... General Fund Spending Outlook, presentation to the Budget Trends Commission, August 2008, Dybdal, Reitan and Broat ...
... General Fund Spending Outlook, presentation to the Budget Trends Commission, August 2008, Dybdal, Reitan and Broat ...
Spring 2015 TEST 3 w/ solution
... payments because government purchasing of goods and services: A) is a type of fiscal policy, while changing taxes and transfer payments is a type of monetary policy. B) is a type of monetary policy, while changing taxes and transfer payments is a type of fiscal policy. C) influences aggregate demand ...
... payments because government purchasing of goods and services: A) is a type of fiscal policy, while changing taxes and transfer payments is a type of monetary policy. B) is a type of monetary policy, while changing taxes and transfer payments is a type of fiscal policy. C) influences aggregate demand ...
Parkin-Bade Chapter 24
... State and Local Budgets • The total government sector includes state and local governments as well as the federal government. • In 2008, when federal government outlays were about $3,200 billion, state and local outlays were a further $2,000 billion. • Most of state expenditures were on public sch ...
... State and Local Budgets • The total government sector includes state and local governments as well as the federal government. • In 2008, when federal government outlays were about $3,200 billion, state and local outlays were a further $2,000 billion. • Most of state expenditures were on public sch ...
The US economic outlook
... 888 011) is a licensed securities dealer. Additional information is available upon request. Information herein is believed to be reliable but JPMorgan does not warrant its completeness or accuracy. Opinions and estimates constitute our judgment and are subject to change without notice. Past performa ...
... 888 011) is a licensed securities dealer. Additional information is available upon request. Information herein is believed to be reliable but JPMorgan does not warrant its completeness or accuracy. Opinions and estimates constitute our judgment and are subject to change without notice. Past performa ...
War on Terror & The Investment Implications
... • R3.4bn extra to compensate for inflation • Tax relief sensitive to inflation – Less aggressive personal tax cuts in 2003/04 – Surplus being diverted to loss on NOFP instead of spending – Fuel levy rise to be less than inflation ...
... • R3.4bn extra to compensate for inflation • Tax relief sensitive to inflation – Less aggressive personal tax cuts in 2003/04 – Surplus being diverted to loss on NOFP instead of spending – Fuel levy rise to be less than inflation ...
PROBLEM SET 1 - SOLUTIONS 14.02 Introductory Macroeconomics February 16, 2005
... more than the strength of the labor force. 5. Between 2003 and 2004, in‡ation as measured by the consumer price index increased due to a substantial increase in the price at which the government bought defense equipment for the war in Iraq. False. Defense goods do not enter into the calculation of t ...
... more than the strength of the labor force. 5. Between 2003 and 2004, in‡ation as measured by the consumer price index increased due to a substantial increase in the price at which the government bought defense equipment for the war in Iraq. False. Defense goods do not enter into the calculation of t ...
Pre-Test Chapter 8 ed17
... 5. Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, a ...
... 5. Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, a ...
Review for Final I
... Interest Rates: Nominal and Real • Nominal Interest Rate (i): the interest rate observed in the market. • Real Interest Rate (r): the nominal rate adjusted for inflation (). Real Interest Rate = Nominal Interest Rate – Inflation Rate ...
... Interest Rates: Nominal and Real • Nominal Interest Rate (i): the interest rate observed in the market. • Real Interest Rate (r): the nominal rate adjusted for inflation (). Real Interest Rate = Nominal Interest Rate – Inflation Rate ...
Stimulus/Austerity
... lower bound on the nominal interest,” - government spending multipliers display much larger values than usual. Under normal conditions when federal funds rate is positive, multipliers may be around one, meaning an increase in government spending does not create any second, third round incomes. Howev ...
... lower bound on the nominal interest,” - government spending multipliers display much larger values than usual. Under normal conditions when federal funds rate is positive, multipliers may be around one, meaning an increase in government spending does not create any second, third round incomes. Howev ...
PDF
... government bonds of the emerging economies. In the real economy the positive effects of government stimulus programmes are also being felt. However, experience with past phases of weak economies shows that recovery is usually slow in the case of recessions that are accompanied by bank and real-estat ...
... government bonds of the emerging economies. In the real economy the positive effects of government stimulus programmes are also being felt. However, experience with past phases of weak economies shows that recovery is usually slow in the case of recessions that are accompanied by bank and real-estat ...
Multiple Choice Week Six
... increasing a current account deficit, which means a worse trade balance. However, the effect on the current account balance of removing import tariffs would depend on the initial tariffs. If initially tariffs were low, their removal would not cause as large an increase in import expenditure than if ...
... increasing a current account deficit, which means a worse trade balance. However, the effect on the current account balance of removing import tariffs would depend on the initial tariffs. If initially tariffs were low, their removal would not cause as large an increase in import expenditure than if ...
Risks in the Global Economy
... • Perspective from theory of a benevolent government: Suppose the government has an unchanging objective, say, to maximize some measure of the present value of citizens’ welfare over time Theoretical implication: The resulting optimal government policy is inconsistent over time; it requires a commi ...
... • Perspective from theory of a benevolent government: Suppose the government has an unchanging objective, say, to maximize some measure of the present value of citizens’ welfare over time Theoretical implication: The resulting optimal government policy is inconsistent over time; it requires a commi ...
ECN 111 PRINCIPLES OF MACROECONOMICS HOMEWORK 5
... 4. The assignment can either be hand-written or typed on a computer—I don’t care as long as I can read it. 5. Assignments will be collected at the end of class on the due date. They must be submitted by the end of the class period. No Late Assignments! 6. Please staple your homework pages together w ...
... 4. The assignment can either be hand-written or typed on a computer—I don’t care as long as I can read it. 5. Assignments will be collected at the end of class on the due date. They must be submitted by the end of the class period. No Late Assignments! 6. Please staple your homework pages together w ...
Heading for presentation - Chartered Institute of Housing
... • Though a remarkable consistency of priorities across time • Cuts pencilled in for 2015-16 and 2016-17 look painful • The new fiscal framework, especially the independent OBR, looks more robust than what went before • But there remain risks to deliverability © Institute for Fiscal Studies ...
... • Though a remarkable consistency of priorities across time • Cuts pencilled in for 2015-16 and 2016-17 look painful • The new fiscal framework, especially the independent OBR, looks more robust than what went before • But there remain risks to deliverability © Institute for Fiscal Studies ...
Last day to sign up for AP Exam
... The economy is like a car… • You can drive 120mph but it is not sustainable. ...
... The economy is like a car… • You can drive 120mph but it is not sustainable. ...
Test Your Knowledge interactive - Federal Reserve Bank of Atlanta
... Proprietary and Confidential. Not for disclosure outside Federal Reserve. ...
... Proprietary and Confidential. Not for disclosure outside Federal Reserve. ...
Economics Semester Review!
... the more you have of an item – the less satisfaction you get with each additional item. ...
... the more you have of an item – the less satisfaction you get with each additional item. ...
Econ Final Review PPT
... increases and firms raise prices to maintain profits. Cost increases may happen because wages have gone up or because raw material prices have increased. It is important not to confuse cost-push with demand-pull inflation. Costpush inflation happens when costs have risen independently of demand. ...
... increases and firms raise prices to maintain profits. Cost increases may happen because wages have gone up or because raw material prices have increased. It is important not to confuse cost-push with demand-pull inflation. Costpush inflation happens when costs have risen independently of demand. ...
Objectives and Instruments of Macroeconomics
... • But how does such a minor thing as the money supply can have such a large impact on macroeconomic activity. • By changing the money supply, the federal reserve can influence many financial and economic variables, such as interest rates, housing prices and foreign exchange rates. • Restricting the ...
... • But how does such a minor thing as the money supply can have such a large impact on macroeconomic activity. • By changing the money supply, the federal reserve can influence many financial and economic variables, such as interest rates, housing prices and foreign exchange rates. • Restricting the ...
Spring 2007
... a) The Federal Reserve Bank is less subject to political pressure than Congress. b) Most economists do not believe that contractionary fiscal policy would work to lower aggregate expenditures. c) Large deficits have limited the use of monetary policy to fight inflation. 17) One reason a depreciation ...
... a) The Federal Reserve Bank is less subject to political pressure than Congress. b) Most economists do not believe that contractionary fiscal policy would work to lower aggregate expenditures. c) Large deficits have limited the use of monetary policy to fight inflation. 17) One reason a depreciation ...