Lecture 2: National Income Accounting
... The unemployment rate that is consistent with full employment is called the fullemployment rate of unemployment, or the natural rate of unemployment (NRU). The Potential GDP is the real output an economy can produce when it fully employs its available resources, i.e., at the natural rate of une ...
... The unemployment rate that is consistent with full employment is called the fullemployment rate of unemployment, or the natural rate of unemployment (NRU). The Potential GDP is the real output an economy can produce when it fully employs its available resources, i.e., at the natural rate of une ...
Name 1 In The General Theory of Employment, Interest, and Money
... A. increases income. B. decreases income. C. leaves income unchanged. D. could either decrease or increase income, depending on what happens to the exchange rate. ...
... A. increases income. B. decreases income. C. leaves income unchanged. D. could either decrease or increase income, depending on what happens to the exchange rate. ...
Due Date: Friday, September 17th
... percentage change in prices is zero and thus ΔM/M = ΔY/Y. Thus in the short run a 5 percent reduction in the money supply leads to a 5 percent reduction in output. In the long-run we know that prices are flexible and the economy returns to its natural rate of output. This implies that in the long-ru ...
... percentage change in prices is zero and thus ΔM/M = ΔY/Y. Thus in the short run a 5 percent reduction in the money supply leads to a 5 percent reduction in output. In the long-run we know that prices are flexible and the economy returns to its natural rate of output. This implies that in the long-ru ...
Market Equilibrium Changes
... PUTTING IT ALL TOGETHER: EQUILIBRIUM How Demand & Supply Interact to Determine Prices of Goods & Services ...
... PUTTING IT ALL TOGETHER: EQUILIBRIUM How Demand & Supply Interact to Determine Prices of Goods & Services ...
Inflacja - E-SGH
... stimulus (lower interest rate),faster economic growth outside the economy Effects: rising prices, higher real GDP and employment Cost-push inflation – shift of short-run supply curve to the left because of : the increase of components costs, rising labor costs, higher indirect taxes Effects: higher ...
... stimulus (lower interest rate),faster economic growth outside the economy Effects: rising prices, higher real GDP and employment Cost-push inflation – shift of short-run supply curve to the left because of : the increase of components costs, rising labor costs, higher indirect taxes Effects: higher ...
What is Macroeconomics?
... High interest rates make investment in Australia attractive to foreigners, cet. par., leading to an inflow of capital (usually as overseas borrowing), which may have the effect of raising the value of the Aussie dollar, which in turn may have adverse effects on Australian costs, and further distress ...
... High interest rates make investment in Australia attractive to foreigners, cet. par., leading to an inflow of capital (usually as overseas borrowing), which may have the effect of raising the value of the Aussie dollar, which in turn may have adverse effects on Australian costs, and further distress ...
The production possibilities curve illustrates which two of the
... Which of the following correctly characterizes the shape of a constant opportunity cost production possibilities curve? A straight line indicating that the law of increasing opportunity costs applies. A straight line when there is constant opportunity costs. A line that curves outward when resources ...
... Which of the following correctly characterizes the shape of a constant opportunity cost production possibilities curve? A straight line indicating that the law of increasing opportunity costs applies. A straight line when there is constant opportunity costs. A line that curves outward when resources ...
Panel Discussion Lyle E. Gramley*
... demand, which leads to very large errors in short-run forecasts of reserve needs, as Donald Kohn pointed out. Moreover, the GoodhartVifials paper notes that lags are long in the adjustment of money demand, real GDP, and prices to changes in interest rates. Add a dollop of uncertainty to all of these ...
... demand, which leads to very large errors in short-run forecasts of reserve needs, as Donald Kohn pointed out. Moreover, the GoodhartVifials paper notes that lags are long in the adjustment of money demand, real GDP, and prices to changes in interest rates. Add a dollop of uncertainty to all of these ...
Indian Bond Market some interesting features
... A plot of the yield (YTM) on various debt instruments against the time to maturity. This is known as the yield curve Under normal circumstances, bonds with longer time to maturity will offer a greater return as there is a far greater element of uncertainty and therefore, risk (high risk-high return) ...
... A plot of the yield (YTM) on various debt instruments against the time to maturity. This is known as the yield curve Under normal circumstances, bonds with longer time to maturity will offer a greater return as there is a far greater element of uncertainty and therefore, risk (high risk-high return) ...
Fiscal Policy
... government intervention and believe that fiscal policy is not helpful. • Where fiscal policy could be beneficial, monetary policy can do the job better BUT will probably not (Friedman). • Automatic stabilizers are sufficient sources of ...
... government intervention and believe that fiscal policy is not helpful. • Where fiscal policy could be beneficial, monetary policy can do the job better BUT will probably not (Friedman). • Automatic stabilizers are sufficient sources of ...
ecture 4: Unemployment in the ong Run
... Research has shown that minimum wage laws may be too low for unskilled workers because of firm’s monopsony power. In New Jersey the minimum wage was increased while in Pennsylvania it was not. ◆ Unemployment rate fell in NJ- support that firms were exploiting monopsony power. ...
... Research has shown that minimum wage laws may be too low for unskilled workers because of firm’s monopsony power. In New Jersey the minimum wage was increased while in Pennsylvania it was not. ◆ Unemployment rate fell in NJ- support that firms were exploiting monopsony power. ...
Macroeconomics
... • In an ideal labor market, wages would adjust to balance the supply and demand for labor, ensuring that all workers would be fully employed. • Frictional unemployment refers to the unemployment that results from the time that it takes to match workers with jobs. In other words, it takes time for wo ...
... • In an ideal labor market, wages would adjust to balance the supply and demand for labor, ensuring that all workers would be fully employed. • Frictional unemployment refers to the unemployment that results from the time that it takes to match workers with jobs. In other words, it takes time for wo ...
Tut 9
... recession when the price level is below what was expected. Over time, as people observe the lower price level, their expectations will adjust and the economy will return to the long-run aggregate-supply curve. According to the Keynesian stickywage theory, the economy is in a recession because the pr ...
... recession when the price level is below what was expected. Over time, as people observe the lower price level, their expectations will adjust and the economy will return to the long-run aggregate-supply curve. According to the Keynesian stickywage theory, the economy is in a recession because the pr ...
Lecture 4 Business Cycles and Aggregate Supply and
... Differences of AD with the micro demand - AD curves relate overall spending on all components of output to the overall price level - AD is downward sloping mainly due to the money-supply effect. That is when a rise in the price level occurs, the real money supply is reduced (all others held constan ...
... Differences of AD with the micro demand - AD curves relate overall spending on all components of output to the overall price level - AD is downward sloping mainly due to the money-supply effect. That is when a rise in the price level occurs, the real money supply is reduced (all others held constan ...
Economics 1012A Introduction to Macroeconomics Fall 2008 Dr. RE
... 47. The aggregate expenditure model assumes all of the following EXCEPT A) financing the deficit has offsetting effects. B) the government knows what the mpc is. C) the government knows the level of potential income. D) the government can quickly change its spending and taxes. 48. The Fisher equatio ...
... 47. The aggregate expenditure model assumes all of the following EXCEPT A) financing the deficit has offsetting effects. B) the government knows what the mpc is. C) the government knows the level of potential income. D) the government can quickly change its spending and taxes. 48. The Fisher equatio ...
Figure 1-1
... foreigners than he spent on foreign goods, he must have financed the difference by taking out loans from foreigners (or, equivalently, by selling them some of his assets). Thus, the average American borrowed $2,452 from abroad in 2005. ...
... foreigners than he spent on foreign goods, he must have financed the difference by taking out loans from foreigners (or, equivalently, by selling them some of his assets). Thus, the average American borrowed $2,452 from abroad in 2005. ...
Aggregate Supply - Eastbourne College Portal
... whatever reason) so real output cannot remain at Y1, and so it falls to Y2. The economy cannot make as much real output at the given price level if their costs rise. Just like with AD curves, the SRAS curves can also shift to the right. Obviously, this would happen if there were a decrease in costs ...
... whatever reason) so real output cannot remain at Y1, and so it falls to Y2. The economy cannot make as much real output at the given price level if their costs rise. Just like with AD curves, the SRAS curves can also shift to the right. Obviously, this would happen if there were a decrease in costs ...
Specimen question paper
... Which one of the following developments affecting the economy is most likely to account for the movement of macroeconomic equilibrium from E to F? A An increase in labour productivity and wage rates. B A decrease in the underlying trend rate of growth and an increase in world commodity prices. C A d ...
... Which one of the following developments affecting the economy is most likely to account for the movement of macroeconomic equilibrium from E to F? A An increase in labour productivity and wage rates. B A decrease in the underlying trend rate of growth and an increase in world commodity prices. C A d ...
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.