QUESTION : B.5 (3 + 7 = 10 marks)
... real GDP is greater than potential GDP. real GDP is less than potential GDP. real GDP equals potential GDP. None of the above is possible because it is impossible for the unemployment rate to be less than the natural rate. ...
... real GDP is greater than potential GDP. real GDP is less than potential GDP. real GDP equals potential GDP. None of the above is possible because it is impossible for the unemployment rate to be less than the natural rate. ...
STUDY QUESTIONS FOR QUIZ 1 File
... In the quantity equation framework for understanding the determinants of long-run inflation, a rise in government spending ___________ velocity, putting __________ pressure on inflation. (a) raises, upward (b) raises, downward (c) lowers, upward (d) lowers, downward ...
... In the quantity equation framework for understanding the determinants of long-run inflation, a rise in government spending ___________ velocity, putting __________ pressure on inflation. (a) raises, upward (b) raises, downward (c) lowers, upward (d) lowers, downward ...
Ch. 14 Inflation Ppt.
... workers in powerful bargaining positions, and those who borrowed money are the ...
... workers in powerful bargaining positions, and those who borrowed money are the ...
File
... fall. One way to adjust for the effects of inflation is to include ___COLA______ adjustments to those on fixed incomes. Expecting inflation can become a self-fulfilling prophecy. Consumers expect prices to rise, therefore, they buy more now, this, in turn results in demand-pull inflation. F. ...
... fall. One way to adjust for the effects of inflation is to include ___COLA______ adjustments to those on fixed incomes. Expecting inflation can become a self-fulfilling prophecy. Consumers expect prices to rise, therefore, they buy more now, this, in turn results in demand-pull inflation. F. ...
stabilization policy.notebook - S Hoyt
... work to begin looking for work. 3. Increase in payroll taxes These make it more expensive to hire employees. 4. Industrial restructuring. Some industries closing, some new one's starting. Many jobs lost due to robotics. 5. Low productivity growth If workers produce more product, the ...
... work to begin looking for work. 3. Increase in payroll taxes These make it more expensive to hire employees. 4. Industrial restructuring. Some industries closing, some new one's starting. Many jobs lost due to robotics. 5. Low productivity growth If workers produce more product, the ...
Mankiw SM Chap13 correct size:chap13.qxd.qxd
... inflation, we require, first, that the plan to reduce inflation be announced before people form expectations (e.g., before they form wage agreements and price contracts); and second, that those setting wages and prices believe that the announced plan will be carried out. If both requirements are met ...
... inflation, we require, first, that the plan to reduce inflation be announced before people form expectations (e.g., before they form wage agreements and price contracts); and second, that those setting wages and prices believe that the announced plan will be carried out. If both requirements are met ...
Chapter 35 Key Question Solutions
... be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policy to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succeed. Use the concept of the long-run Phillips Curve to explain the long-ru ...
... be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policy to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succeed. Use the concept of the long-run Phillips Curve to explain the long-ru ...
Debates in Macroeconomics: Monetarism, New
... earning income and firms would earn more profits, so that the increases in the tax base (profits, sales, and income) would then outweigh the decreases in rates, resulting in increased government revenues. ...
... earning income and firms would earn more profits, so that the increases in the tax base (profits, sales, and income) would then outweigh the decreases in rates, resulting in increased government revenues. ...
Debates in Macroeconomics: Monetarism, New
... earning income and firms would earn more profits, so that the increases in the tax base (profits, sales, and income) would then outweigh the decreases in rates, resulting in increased government revenues. ...
... earning income and firms would earn more profits, so that the increases in the tax base (profits, sales, and income) would then outweigh the decreases in rates, resulting in increased government revenues. ...
Demand for Loans Real Interest Rate
... inflation B) Unemployment decreases with an increase in inflation C) Increased automation will lead to lower levels of structural unemployment in the long-run. D) Changes in the composition of the overall demand for labor tend to be deflationary in the long-run. E) The natural rate of unemployment i ...
... inflation B) Unemployment decreases with an increase in inflation C) Increased automation will lead to lower levels of structural unemployment in the long-run. D) Changes in the composition of the overall demand for labor tend to be deflationary in the long-run. E) The natural rate of unemployment i ...
Lesson 1 - VU LMS - Virtual University
... Would it be possible for a short-run AS curve to be horizontal at all levels of output? No. Given that some factors are fixed in supply in the short run, there will inevitably be a limit to output. As that limit is approached, the AS curve will slope upwards until it becomes vertical at that limit. ...
... Would it be possible for a short-run AS curve to be horizontal at all levels of output? No. Given that some factors are fixed in supply in the short run, there will inevitably be a limit to output. As that limit is approached, the AS curve will slope upwards until it becomes vertical at that limit. ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... finding has little to do with the current thought that the multiplier is much higher when the interest rate is at its lower bound of zero. The authors do not appear to report the ending date of their sample period, but the sample surely includes only a few years when any country apart from Japan was ...
... finding has little to do with the current thought that the multiplier is much higher when the interest rate is at its lower bound of zero. The authors do not appear to report the ending date of their sample period, but the sample surely includes only a few years when any country apart from Japan was ...
壹 - 國立彰化師範大學圖書館
... a. make markets more equitable b. direct resources towards markets that are under-served c. distribute scarce goods to those who value them most highly d. direct resources away from "over crowded" markets e. keep consumers from buying too much 17. A price ceiling a. prevents sellers from charging le ...
... a. make markets more equitable b. direct resources towards markets that are under-served c. distribute scarce goods to those who value them most highly d. direct resources away from "over crowded" markets e. keep consumers from buying too much 17. A price ceiling a. prevents sellers from charging le ...
Fiscal and Monetary Policy
... For many years, economists believed that the economy would experience either high inflation or high unemployment, but not both at the same time. They believed that unemployment and inflation moved in opposite directions. In the 1970s, inflation and unemployment began to move in the same direction. T ...
... For many years, economists believed that the economy would experience either high inflation or high unemployment, but not both at the same time. They believed that unemployment and inflation moved in opposite directions. In the 1970s, inflation and unemployment began to move in the same direction. T ...
– 62 No: 2012 Release date: 25 December 2012
... Overall, aggregate demand conditions support disinflation and current account deficit continues to decline gradually. 11. The Committee expects economic activity to follow a stronger course starting from the last quarter of the year. In fact, confidence indices and credit growth show a marked increa ...
... Overall, aggregate demand conditions support disinflation and current account deficit continues to decline gradually. 11. The Committee expects economic activity to follow a stronger course starting from the last quarter of the year. In fact, confidence indices and credit growth show a marked increa ...
Macro2 Exercise #2 Answers
... and the nominal interest rate? The real rate tells the return, corrected for expected changes in purchasing power, that people expect on their savings. It is also the real cost firms expect if they borrow to finance investment. The nominal rate is the one everyone sees, but it does not tell expected ...
... and the nominal interest rate? The real rate tells the return, corrected for expected changes in purchasing power, that people expect on their savings. It is also the real cost firms expect if they borrow to finance investment. The nominal rate is the one everyone sees, but it does not tell expected ...
File
... 1. The business cycle is best defined as alternating periods of increases and decreases in the rate of inflation in the economy. T F 2. Business cycles tend to be of roughly equal duration and intensity. T F 3. Fluctuations in real output in the economy are caused by economic shocks, and because pr ...
... 1. The business cycle is best defined as alternating periods of increases and decreases in the rate of inflation in the economy. T F 2. Business cycles tend to be of roughly equal duration and intensity. T F 3. Fluctuations in real output in the economy are caused by economic shocks, and because pr ...
Mrs. Thompson`s Notes on Defining, Calculating, and Measuring
... a. Cost-push inflation occurs when certain inputs that are universally important to business operations rise in price (i.e., oil). For all businesses, this creates a situation in which the cost of producing has gone up – so many will choose to produce less. The result of this leftward shift of the s ...
... a. Cost-push inflation occurs when certain inputs that are universally important to business operations rise in price (i.e., oil). For all businesses, this creates a situation in which the cost of producing has gone up – so many will choose to produce less. The result of this leftward shift of the s ...
What else is at the NY Fed?
... – Stimulating the economy would raise output temporarily – Firms will build high inflation into their price changes – Output will return to potential. ...
... – Stimulating the economy would raise output temporarily – Firms will build high inflation into their price changes – Output will return to potential. ...
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.