Economics 259 Final Exam – Spring 2014 Name: Before beginning
... decrease. It is hard to decrease nominal wages in the real world and it is even expected to keep ...
... decrease. It is hard to decrease nominal wages in the real world and it is even expected to keep ...
Model Paper Macro Economics
... Q. 1) Can we justify the dominance of money over the barter system by the functions it performs? How can financial intermediaries play their role in this regard? Q. 2) Fiscal and Monetary policies are the two different approaches to achieve the same goal i.e. of controlling imbalances. Discuss. Also ...
... Q. 1) Can we justify the dominance of money over the barter system by the functions it performs? How can financial intermediaries play their role in this regard? Q. 2) Fiscal and Monetary policies are the two different approaches to achieve the same goal i.e. of controlling imbalances. Discuss. Also ...
6.02 Understand economic indicators to recognize economic trends
... Inflation: A persistent increase in the average price level in the economy. Inflation Rate: The percentage change in the price level from one period to the next. Deflation: A persistent decrease in the average price level in the economy. Consumer Price Index: An index of prices of goods and ...
... Inflation: A persistent increase in the average price level in the economy. Inflation Rate: The percentage change in the price level from one period to the next. Deflation: A persistent decrease in the average price level in the economy. Consumer Price Index: An index of prices of goods and ...
ECM B06: Course Plan
... Short-Run (SR) The SR is such a short period of time that prices are fixed. [The technology is also fixed as is the productive capital stock. Variations in employment (L) lead to changes in output (Y).] Long-Run (LR) ...
... Short-Run (SR) The SR is such a short period of time that prices are fixed. [The technology is also fixed as is the productive capital stock. Variations in employment (L) lead to changes in output (Y).] Long-Run (LR) ...
Midterm 3
... The unemployment rate falls when increases to AD occur that are a surprise to everyone in the economy. Increases in AD created by the government in order to manage the economy create inflation but not lower unemployment. This outcome is best explained if wages are set according to: ...
... The unemployment rate falls when increases to AD occur that are a surprise to everyone in the economy. Increases in AD created by the government in order to manage the economy create inflation but not lower unemployment. This outcome is best explained if wages are set according to: ...
Eco 212_____Name
... The unemployment rate falls when increases to AD occur that are a surprise to everyone in the economy. Increases in AD created by the government in order to manage the economy create inflation but not lower unemployment. This outcome is best explained if wages are set according to: ...
... The unemployment rate falls when increases to AD occur that are a surprise to everyone in the economy. Increases in AD created by the government in order to manage the economy create inflation but not lower unemployment. This outcome is best explained if wages are set according to: ...
Econ 102- Introductıon to economıcs II Department of Economıcs
... e) “Aggregate demand schedule” f) “Full employment income-potential income- income at natural rate of unemployment” Question 2- IS & LM curves: Assume that in the Simplite economy, desired consumption, taxes, government spending, investment and net exports are given as follows: Cd=700+0.7 YD, T=0, G ...
... e) “Aggregate demand schedule” f) “Full employment income-potential income- income at natural rate of unemployment” Question 2- IS & LM curves: Assume that in the Simplite economy, desired consumption, taxes, government spending, investment and net exports are given as follows: Cd=700+0.7 YD, T=0, G ...
Inflation
... profit margins. This occurs when the economy is booming and sales are strong. It might be called Oligopolistic Inflation (because it is oligopolies that have the power to set their own prices and raise them when they decide the time is ripe) • Sectoral Inflation: When various factors affect/hits a b ...
... profit margins. This occurs when the economy is booming and sales are strong. It might be called Oligopolistic Inflation (because it is oligopolies that have the power to set their own prices and raise them when they decide the time is ripe) • Sectoral Inflation: When various factors affect/hits a b ...
Labor Market and Unemployment
... output and raised worldwide prices of petroleum. Fight the unemployment battle by expanding aggregate demand and accelerate inflation. Fight inflation by contracting aggregate demand and endure even higher unemployment. ...
... output and raised worldwide prices of petroleum. Fight the unemployment battle by expanding aggregate demand and accelerate inflation. Fight inflation by contracting aggregate demand and endure even higher unemployment. ...
Economists and the Real World
... influence and involvement outside was substantial. In 1930 he was appointed to a Committee of the Economic Advisory Council, chaired by Keynes, whose task was to identify the causes and remedies for the developing slump. Robbins and Keynes had very different views – Keynes was groping towards the id ...
... influence and involvement outside was substantial. In 1930 he was appointed to a Committee of the Economic Advisory Council, chaired by Keynes, whose task was to identify the causes and remedies for the developing slump. Robbins and Keynes had very different views – Keynes was groping towards the id ...
ECON 2020 – 200 Spring 2003 Homework #10: Chapter 14
... 4. Which of the following would not cause a shift in the long-run aggregate supply curve? a. an increase in available labor b. an increase in available capital c. an increase in available technology d. an increase in price expectations e. All of the above shift the long-run aggregate supply curve. 5 ...
... 4. Which of the following would not cause a shift in the long-run aggregate supply curve? a. an increase in available labor b. an increase in available capital c. an increase in available technology d. an increase in price expectations e. All of the above shift the long-run aggregate supply curve. 5 ...
AP Macroeconomics - Valley View High School
... Make an honest effort to comprehend the material and ask for help when needed. Take notes as you read the material and review your notes on a regular basis. Your notebook is your lifeline for passing the AP Exam in May, so be sure to safeguard all notes, vocabulary, and activities. Cheating is expre ...
... Make an honest effort to comprehend the material and ask for help when needed. Take notes as you read the material and review your notes on a regular basis. Your notebook is your lifeline for passing the AP Exam in May, so be sure to safeguard all notes, vocabulary, and activities. Cheating is expre ...
Deflation: Good and Bad
... the right direction. As noted above, more small firms believe that they can raise prices this year, reflecting increased confidence in sales prospects. Just as important, key labor market indicators – job growth, new openings and voluntary quits – strongly suggest that bigger pay raises are on the w ...
... the right direction. As noted above, more small firms believe that they can raise prices this year, reflecting increased confidence in sales prospects. Just as important, key labor market indicators – job growth, new openings and voluntary quits – strongly suggest that bigger pay raises are on the w ...
Monetary Theory AD/AS Chapter 24 Aggregate Demand The AD
... rate increases causing C, I and NX to fall. Q: Why does the interest rate increase when the government spending money? A: The government finances it’s spending by issuing bonds. This competes with other private bonds for funds. An excess supply of bonds, causes bond prices to fall and interest rates ...
... rate increases causing C, I and NX to fall. Q: Why does the interest rate increase when the government spending money? A: The government finances it’s spending by issuing bonds. This competes with other private bonds for funds. An excess supply of bonds, causes bond prices to fall and interest rates ...
Inflation After the static aggregate demand and supply analysis of
... How quickly will inflationary expectations adjust to higher inflation? Or: how high can real GDP be pushed by the acceleration in nominal GDP growth? There are two forms of expectations: • rational or forwards-looking expectations ...
... How quickly will inflationary expectations adjust to higher inflation? Or: how high can real GDP be pushed by the acceleration in nominal GDP growth? There are two forms of expectations: • rational or forwards-looking expectations ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... Michael Woodford thought the chapter provided interesting evidence that the approach to policymaking that the Bundesbank was using had characteristics of what simple theoretical models would suggest as good policy. Yet, Woodford wondered if this proves that putting a stabilization objective for mone ...
... Michael Woodford thought the chapter provided interesting evidence that the approach to policymaking that the Bundesbank was using had characteristics of what simple theoretical models would suggest as good policy. Yet, Woodford wondered if this proves that putting a stabilization objective for mone ...
Econ152 Introduction to Macroeconomics Instructor: Leo
... 17) A country reports that its actual real GDP is greater than its potential GDP. It must be that A) an error was made when calculating actual real GDP. B) the price level is increasing. C) more workers decided to quit work in order to enjoy leisure time. D) the excess by which real GDP exceeds pot ...
... 17) A country reports that its actual real GDP is greater than its potential GDP. It must be that A) an error was made when calculating actual real GDP. B) the price level is increasing. C) more workers decided to quit work in order to enjoy leisure time. D) the excess by which real GDP exceeds pot ...
6-4Infldefla
... The vocabulary • A nominal measure is a measure that has not been adjusted for changes in prices over time. • A real measure is a measure that has been adjusted for changes in prices over ...
... The vocabulary • A nominal measure is a measure that has not been adjusted for changes in prices over time. • A real measure is a measure that has been adjusted for changes in prices over ...
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.