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. ...
The Great Depression and Inflation in the 1970s
... in terms of "closing the gap" between actual and potential output, not in terms of moderating fluctuations around some long-run trend. But how were makers of fiscal and monetary policy to know when they had "closed the gap" and attained the maximum sustainable level of employment and capacity utiliz ...
... in terms of "closing the gap" between actual and potential output, not in terms of moderating fluctuations around some long-run trend. But how were makers of fiscal and monetary policy to know when they had "closed the gap" and attained the maximum sustainable level of employment and capacity utiliz ...
the condition of our nation - Texas Public Policy Foundation
... Phillips analyzed U.K. wage changes and unemployment rates for the period 1861-1957 and found a negative relationship. Thus, during periods with large increases in nominal wages, according to Phillips’ study, unemployment tended to be low. Periods of stable or falling wages generally had high unempl ...
... Phillips analyzed U.K. wage changes and unemployment rates for the period 1861-1957 and found a negative relationship. Thus, during periods with large increases in nominal wages, according to Phillips’ study, unemployment tended to be low. Periods of stable or falling wages generally had high unempl ...
National income accounting:
... the Fischer equation), and to a lower real money demand, and to a depreciating currency. ...
... the Fischer equation), and to a lower real money demand, and to a depreciating currency. ...
Real World Applications from an Economist`s Perspective
... Potential vs. Actual GDP o Potential GDP is the output of the economy, assuming no strains on production or unused resources. It is also the maximum amount of economic output an economy can sustain at any moment without inducing an increase in the inflation rate. o Potential Growth Rate = long-term ...
... Potential vs. Actual GDP o Potential GDP is the output of the economy, assuming no strains on production or unused resources. It is also the maximum amount of economic output an economy can sustain at any moment without inducing an increase in the inflation rate. o Potential Growth Rate = long-term ...
AP Macreconomics - Graphical Overview
... Real GDP adjusts Nominal GDP for changes in the price level (inflation and deflation). Real GDP = Nominal GDP / Price Index ...
... Real GDP adjusts Nominal GDP for changes in the price level (inflation and deflation). Real GDP = Nominal GDP / Price Index ...
The Macro Goal Variables
... Characteristics of YF Unobservable. Has grown at 2.5% per year for the US historically since World War II. Maybe for the US, it has grown 3% per year in most recent decade. Growth rate is not the same for all countries (Europe, Canada is less). ...
... Characteristics of YF Unobservable. Has grown at 2.5% per year for the US historically since World War II. Maybe for the US, it has grown 3% per year in most recent decade. Growth rate is not the same for all countries (Europe, Canada is less). ...
ECNS 251 Spring 2013 Homework 9 Answer Key 1. The labor force
... demand for labor would shift down by exactly $4 at each quantity of labor, because the firm would not be willing to pay as high a wage given the increased cost of the benefits. b. If employees value the benefit by exactly $4 per hour, they would be willing to work the same amount for a wage that's $ ...
... demand for labor would shift down by exactly $4 at each quantity of labor, because the firm would not be willing to pay as high a wage given the increased cost of the benefits. b. If employees value the benefit by exactly $4 per hour, they would be willing to work the same amount for a wage that's $ ...
Module History and Alternative Views of
... Important difference: SRAS is vertical (CT) so a shift in AD changes PL but not output. In Keynesian view, a shift affects both PL and output. ...
... Important difference: SRAS is vertical (CT) so a shift in AD changes PL but not output. In Keynesian view, a shift affects both PL and output. ...
Document
... b. The government can only set rax rates so high before people prefer not to work. c. Unskilled workers will have a lower turnover rate than skilled workers. d. D. Workers will be paid less than their reservation wage. ...
... b. The government can only set rax rates so high before people prefer not to work. c. Unskilled workers will have a lower turnover rate than skilled workers. d. D. Workers will be paid less than their reservation wage. ...
Problem Sheet 1
... If you personally only consume pens (no paper or pencils), would your standart of living be likely to increase, decrease or stay the same over the years 2001-2003? Why? Over a long period of time, the price of a candy bar rose from $1 to $6. Over the same period, CPI rose from 150 to 300. Adjusted o ...
... If you personally only consume pens (no paper or pencils), would your standart of living be likely to increase, decrease or stay the same over the years 2001-2003? Why? Over a long period of time, the price of a candy bar rose from $1 to $6. Over the same period, CPI rose from 150 to 300. Adjusted o ...
Assignment Guide: Unit II
... 1) Define macroeconomics. 2) Define and describe the phases of the business cycle. 3) Distinguish between Classical Economic Theory and Keynesian Economic Theory. 4) Define Say’s Law. 5) Define recession. 6) Recognize the trade-offs between macroeconomic goals. 2. Video (Economics USA): Booms and Bu ...
... 1) Define macroeconomics. 2) Define and describe the phases of the business cycle. 3) Distinguish between Classical Economic Theory and Keynesian Economic Theory. 4) Define Say’s Law. 5) Define recession. 6) Recognize the trade-offs between macroeconomic goals. 2. Video (Economics USA): Booms and Bu ...
AP Macro review graphs
... • Deposits into banks are not new $. • Checkable deposits increase by the same amount that reserves increase • Loans determined by excess reserves • Required reserves = CHECKABLE DEPOSITS x required reserve ratio!!!!! • Increase in # of loans or deposits = 1st LOAN x monetary multiplier • When the F ...
... • Deposits into banks are not new $. • Checkable deposits increase by the same amount that reserves increase • Loans determined by excess reserves • Required reserves = CHECKABLE DEPOSITS x required reserve ratio!!!!! • Increase in # of loans or deposits = 1st LOAN x monetary multiplier • When the F ...
Unemployment
... BASIC POSSIBILITIES OF DEFEATING UNEMPLOYMENT 1. stimulation of demand for labour from the government 2. regulation of supply of labour ...
... BASIC POSSIBILITIES OF DEFEATING UNEMPLOYMENT 1. stimulation of demand for labour from the government 2. regulation of supply of labour ...
1 Miami Dade College ECO 2013 Principles of Macroeconomics
... 5. If AE = $6,200 and Y = $5,800, businesses will produce: A) more, raising both employment and income. B) less, lowering both employment and income. C) more, raising employment and lowering income. D) less, lowering employment and raising income. 6. If the marginal propensity to consume is 0.85, h ...
... 5. If AE = $6,200 and Y = $5,800, businesses will produce: A) more, raising both employment and income. B) less, lowering both employment and income. C) more, raising employment and lowering income. D) less, lowering employment and raising income. 6. If the marginal propensity to consume is 0.85, h ...
Principles of Economics
... The Unemployment Rate probably understates the true size of an economy’s problem in matching workers with jobs e.g., if the UR = 10%, there are 10% who want to work but can’t find a job - in that case, clearly a lack of a good “ job match” other mismatches that won’t show up in the UR: “ Underemploy ...
... The Unemployment Rate probably understates the true size of an economy’s problem in matching workers with jobs e.g., if the UR = 10%, there are 10% who want to work but can’t find a job - in that case, clearly a lack of a good “ job match” other mismatches that won’t show up in the UR: “ Underemploy ...
Printer Friendly Version
... • Foreign purchases effect: When the price level rises relative to the price level in foreign countries, the foreign demand for U.S. products decreases. Similarly, the demand for imports increases. – This causes exports to fall and imports to rise. ...
... • Foreign purchases effect: When the price level rises relative to the price level in foreign countries, the foreign demand for U.S. products decreases. Similarly, the demand for imports increases. – This causes exports to fall and imports to rise. ...
CHAPTER 14: TEST BANK
... 2. Women’s labor force participation rates are affected by a number of factors. Both men and women have been attracted into the labor force in rising numbers since World War II. More and different jobs have recently become available for women, which has increased their likelihood of working. Women, ...
... 2. Women’s labor force participation rates are affected by a number of factors. Both men and women have been attracted into the labor force in rising numbers since World War II. More and different jobs have recently become available for women, which has increased their likelihood of working. Women, ...
Appendix – Proof that real income growth equals money income
... Thus, in deflationary times (i.e. d>0), when prices fall faster than money incomes (d>m), real growth appears positive (g>0). For money incomes to be growing (m>0) during deflationary times, real growth (g ...
... Thus, in deflationary times (i.e. d>0), when prices fall faster than money incomes (d>m), real growth appears positive (g>0). For money incomes to be growing (m>0) during deflationary times, real growth (g ...
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.