key - University of Notre Dame
... 10) How does the sacrifice ratio affect the position of point E in the figure above? That is, compare where point E would be if the sacrifice ratio was high to where it would be if the sacrifice ratio was low. If the sacrifice ratio is higher, then point E is further to the left. ...
... 10) How does the sacrifice ratio affect the position of point E in the figure above? That is, compare where point E would be if the sacrifice ratio was high to where it would be if the sacrifice ratio was low. If the sacrifice ratio is higher, then point E is further to the left. ...
Macro – Unit 3 – Short Answer Essay Practice Questions
... the business cycle. However, investment spending is only one-fourth of consumption spending. Explain why investment spending can be so important if it is so much less than consumption spending. Decisions regarding investment spending are a marginal cost-marginal benefit analysis. The benefit is the ...
... the business cycle. However, investment spending is only one-fourth of consumption spending. Explain why investment spending can be so important if it is so much less than consumption spending. Decisions regarding investment spending are a marginal cost-marginal benefit analysis. The benefit is the ...
Revision – Inflation and deflation
... Deflationary demand-side policies may be used, but they will result in lower national output and are likely to cause unemployment to rise. Thus, demand-side policies are ineffective and supply-side policies are appropriate. However, when inflation does occur, it is difficult to distinguish between t ...
... Deflationary demand-side policies may be used, but they will result in lower national output and are likely to cause unemployment to rise. Thus, demand-side policies are ineffective and supply-side policies are appropriate. However, when inflation does occur, it is difficult to distinguish between t ...
Stagflation is unique situation where there is high
... monetary policies and labor & good policies, it may lead to decrease in production. If such a ...
... monetary policies and labor & good policies, it may lead to decrease in production. If such a ...
Document
... b. the GDP that would be produced if the economy's resources were fully employed at a normal intensity of use c. achieved during periods when all of the labour force is employed d. the GDP that could be produced if the economy's resources were fully employed at their maximum intensity of use ...
... b. the GDP that would be produced if the economy's resources were fully employed at a normal intensity of use c. achieved during periods when all of the labour force is employed d. the GDP that could be produced if the economy's resources were fully employed at their maximum intensity of use ...
Santa Barbara County Economic Forecast Seminar Miramar Hotel, Jameson Lane
... In addition, many lenders reduced their risk by withdrawing from private debt markets. ...
... In addition, many lenders reduced their risk by withdrawing from private debt markets. ...
Chapter 13
... Contractionary Gap. Supply Shocks (things which we have no control) took place in the seventies such as OPEC’s oil embargo, drought caused crop failure, union wage increases, increased regulations and business taxes. These things caused the cost of doing business to increase leading to both inflatio ...
... Contractionary Gap. Supply Shocks (things which we have no control) took place in the seventies such as OPEC’s oil embargo, drought caused crop failure, union wage increases, increased regulations and business taxes. These things caused the cost of doing business to increase leading to both inflatio ...
總體1/2003 第二次考試班級： 學號： 姓名：
... a gallon of U.S. gasoline costs US$2.0, and a gallon of Taiwan gas costs NT$25. What is the nominal exchange rate? a. NT 25 dollars per U.S. dollar b. NT 12.5 dollars per U.S. dollar c. NT 50 dollars per U.S. dollar d. None of the above is correct. Ch 35 3. Friedman and Phelps argued that a. there i ...
... a gallon of U.S. gasoline costs US$2.0, and a gallon of Taiwan gas costs NT$25. What is the nominal exchange rate? a. NT 25 dollars per U.S. dollar b. NT 12.5 dollars per U.S. dollar c. NT 50 dollars per U.S. dollar d. None of the above is correct. Ch 35 3. Friedman and Phelps argued that a. there i ...
FedViews
... They are not intended to represent the views of others within the Bank or within the Federal Reserve System. FedViews generally appears around the middle of the month. The next FedViews is scheduled to be released on or before June 17, 2016. ...
... They are not intended to represent the views of others within the Bank or within the Federal Reserve System. FedViews generally appears around the middle of the month. The next FedViews is scheduled to be released on or before June 17, 2016. ...
Business Cycle Theories
... incorporated into the new classical theory. The innovative feature of Friedman’s model is the specification of the labour supply curve to be dependent on the expected real wage (W L P e ) rather than the actual real wage (W L P). This implies that the presence of imperfect price information on the p ...
... incorporated into the new classical theory. The innovative feature of Friedman’s model is the specification of the labour supply curve to be dependent on the expected real wage (W L P e ) rather than the actual real wage (W L P). This implies that the presence of imperfect price information on the p ...
Inflation
... cost isn't high. Conflict can arise when there is unanticipated inflation, like: (1) Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan. (2) Uncertainty about what will happen next makes corpor ...
... cost isn't high. Conflict can arise when there is unanticipated inflation, like: (1) Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan. (2) Uncertainty about what will happen next makes corpor ...
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.