Discussion of Irvine and Schuh Robert J. Gordon
... Food-energy effect (difference headline vs. core inf) Changes in relative price of imports Changes in the productivity growth trend Nixon-era price controls, “on-off” dummies adding to zero ...
... Food-energy effect (difference headline vs. core inf) Changes in relative price of imports Changes in the productivity growth trend Nixon-era price controls, “on-off” dummies adding to zero ...
1 - nrapmacro
... Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. ...
... Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. ...
Chapter 28 Government and Stabilization
... variable on the past performance of the variable, with the most recent past having the greatest weight Rational expectations--people should be smarter than this, should use all information available to them in forming expectations ...
... variable on the past performance of the variable, with the most recent past having the greatest weight Rational expectations--people should be smarter than this, should use all information available to them in forming expectations ...
AP Macro - Sect. 6 PP no bkgd
... Module 32 - Money, Output & Prices in the Long-run Short & Long-run Effects of an Increase in the Money Supply In the short-run: - increase in aggregate demand & increase in price level In long-run: - increase in aggregate price level Monetary Neutrality If money supply is increased by 10% the pric ...
... Module 32 - Money, Output & Prices in the Long-run Short & Long-run Effects of an Increase in the Money Supply In the short-run: - increase in aggregate demand & increase in price level In long-run: - increase in aggregate price level Monetary Neutrality If money supply is increased by 10% the pric ...
Problem Set - Kanit Kuevibulvanich
... 1. Illustrate the long-run equilibrium in the AD/AS model. 2. Analyze how the AD, SRAS or LRAS shifts in the following scenarios: i. An increase in government spending ii. A decrease in consumer and business confidence iii. An increase in demand for our goods by foreigners iv. A decrease in oil pric ...
... 1. Illustrate the long-run equilibrium in the AD/AS model. 2. Analyze how the AD, SRAS or LRAS shifts in the following scenarios: i. An increase in government spending ii. A decrease in consumer and business confidence iii. An increase in demand for our goods by foreigners iv. A decrease in oil pric ...
Aggregate Supply (AS) Curve
... We will shortly explain precisely what we mean by potential GDP. Aggregate Supply (AS) Curve AS Question: How many final goods and services would be produced if the inflation rate () were _______ percent, given that all other factors relevant to supply remained the same? ...
... We will shortly explain precisely what we mean by potential GDP. Aggregate Supply (AS) Curve AS Question: How many final goods and services would be produced if the inflation rate () were _______ percent, given that all other factors relevant to supply remained the same? ...
Download Syllabus
... This course is a sequel to the core course Global Economic Environment. Building on the fundamentals introduced in that course, we develop a conceptual framework to explain business cycle fluctuations and their implications for financial markets. We examine in particular the determinants of key econ ...
... This course is a sequel to the core course Global Economic Environment. Building on the fundamentals introduced in that course, we develop a conceptual framework to explain business cycle fluctuations and their implications for financial markets. We examine in particular the determinants of key econ ...
FRBSF E L
... lacks the complicated adjustments and methods that characterize the government agencies’ models. Nonetheless, it does track pretty closely with the official numbers. What’s more, it gives an independent assessment of consumer prices that is helpful for those who may distrust official federal data. W ...
... lacks the complicated adjustments and methods that characterize the government agencies’ models. Nonetheless, it does track pretty closely with the official numbers. What’s more, it gives an independent assessment of consumer prices that is helpful for those who may distrust official federal data. W ...
No: 2013 – 4 Release date: 29 January 2013
... 11. Recent data confirm that the rebalancing between the domestic and external demand continues as envisaged. Domestic demand follows a moderate pace while exports continue to increase despite weak global activity. Overall, current account deficit continues to decline gradually. 12. The Committee h ...
... 11. Recent data confirm that the rebalancing between the domestic and external demand continues as envisaged. Domestic demand follows a moderate pace while exports continue to increase despite weak global activity. Overall, current account deficit continues to decline gradually. 12. The Committee h ...
Parkin-Bade Chapter 28
... Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen by 30 percent, the price level had fallen by 20 percent, and one person in five was unemployed. The 1990s and 2000s were also years of unprecedented prosperity. In October 2008, stock prices fell, ...
... Overnight, stock prices fell by 30 percent. The Great Depression began and by 1933, real GDP had fallen by 30 percent, the price level had fallen by 20 percent, and one person in five was unemployed. The 1990s and 2000s were also years of unprecedented prosperity. In October 2008, stock prices fell, ...
Inflation Cycles
... In the long run, inflation occurs if the quantity of money grows faster than potential GDP. In the short run, many factors can start an inflation, and real GDP and the price level interact. To study these interactions, we distinguish two sources of inflation: ...
... In the long run, inflation occurs if the quantity of money grows faster than potential GDP. In the short run, many factors can start an inflation, and real GDP and the price level interact. To study these interactions, we distinguish two sources of inflation: ...
short-run AS curve
... After a time, the expected level of input prices will adjust to the increase in final goods prices. The short-run AS curve will shift upward, and the economy will move up and to the left along AD1 until it reaches a new equilibrium at E3. As it does so, the price level of final goods will co ...
... After a time, the expected level of input prices will adjust to the increase in final goods prices. The short-run AS curve will shift upward, and the economy will move up and to the left along AD1 until it reaches a new equilibrium at E3. As it does so, the price level of final goods will co ...
Natural Rate of Interest
... One of the hot topics at the recent Federal Reserve conference at Jackson Hole was the natural rate of interest. What is natural rate and why does it matter to the central bank like Federal Reserve and the Bank of Korea? Suppose the economy is at full employment and the inflation rate is steady near ...
... One of the hot topics at the recent Federal Reserve conference at Jackson Hole was the natural rate of interest. What is natural rate and why does it matter to the central bank like Federal Reserve and the Bank of Korea? Suppose the economy is at full employment and the inflation rate is steady near ...
Chapter 30: Money Growth and Inflation Principles of Economics, 7
... If we only have a certain amount to spend and the price and the amount that we are spending on oil goes up, then we have less to spend on everything else and their prices would be expected to fall. i. There probably is little effect on the average level of prices. d. So what causes inflation: that i ...
... If we only have a certain amount to spend and the price and the amount that we are spending on oil goes up, then we have less to spend on everything else and their prices would be expected to fall. i. There probably is little effect on the average level of prices. d. So what causes inflation: that i ...
Supply Side Approaches
... The term 'Classical' refers to work done by a group of economists in the 18th and 19th centuries. Much of this work was developing theories about the way markets and market economies work. Much of this work has subsequently been updated by modern economists and they are generally termed neoclassical ...
... The term 'Classical' refers to work done by a group of economists in the 18th and 19th centuries. Much of this work was developing theories about the way markets and market economies work. Much of this work has subsequently been updated by modern economists and they are generally termed neoclassical ...
AP Macroeconomics Review
... Aggregate Supply Factors: R: resource prices (The CELL/ wages and materials, as well as OIL) E: environment [legal-institutional] (Taxes, Subsidies, more regulation) P: productivity (better technology) ...
... Aggregate Supply Factors: R: resource prices (The CELL/ wages and materials, as well as OIL) E: environment [legal-institutional] (Taxes, Subsidies, more regulation) P: productivity (better technology) ...
CFO11e_ch28
... affect their current price decisions. An increase in future price expectations may shift the AS curve to the left and thus act like a cost shock. Expectations can get “built into the system.” If every firm expects every other firm to raise prices by 10 percent, every firm will raise prices by about ...
... affect their current price decisions. An increase in future price expectations may shift the AS curve to the left and thus act like a cost shock. Expectations can get “built into the system.” If every firm expects every other firm to raise prices by 10 percent, every firm will raise prices by about ...
Eco120Int_Lecture4
... 2. An greater increase in prices than expected is a rise in expected inflation. Inflation is a cost for people who save, as inflation means prices of goods in the future are higher, so money saved is worth less. The rise in expected inflation will push up nominal interest rates- to compensate savers ...
... 2. An greater increase in prices than expected is a rise in expected inflation. Inflation is a cost for people who save, as inflation means prices of goods in the future are higher, so money saved is worth less. The rise in expected inflation will push up nominal interest rates- to compensate savers ...
1960s: Experiments with Fiscal Policy
... demand initially, but the expansion and modernization of the capital stock will translate into higher productive capacity in the future. It is for this reason that so much attention in recent years has been focused on tax policies such as investment tax credits and accelerated depreciation aimed at ...
... demand initially, but the expansion and modernization of the capital stock will translate into higher productive capacity in the future. It is for this reason that so much attention in recent years has been focused on tax policies such as investment tax credits and accelerated depreciation aimed at ...
Phillips curve
In economics, the Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result in an economy. Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of inflation.While there is a short run tradeoff between unemployment and inflation, it has not been observed in the long run. In 1968, Milton Friedman asserted that the Phillips Curve was only applicable in the short-run and that in the long-run, inflationary policies will not decrease unemployment. Friedman then correctly predicted that, in the upcoming years after 1968, both inflation and unemployment would increase. The long-run Phillips Curve is now seen as a vertical line at the natural rate of unemployment, where the rate of inflation has no effect on unemployment. Accordingly, the Phillips curve is now seen as too simplistic, with the unemployment rate supplanted by more accurate predictors of inflation based on velocity of money supply measures such as the MZM (""money zero maturity"") velocity, which is affected by unemployment in the short but not the long term.