Econ 2 UT3 F16 - Bakersfield College
... 26. When people become more worried they are not going to lose their jobs: a. their demand for money increases. b. their demand for money decreases. c. their demand for money stays the same. 27. The Phillips curve of the 1960s was a line: a. straight up and down. b. straight flat across. c. shaped l ...
... 26. When people become more worried they are not going to lose their jobs: a. their demand for money increases. b. their demand for money decreases. c. their demand for money stays the same. 27. The Phillips curve of the 1960s was a line: a. straight up and down. b. straight flat across. c. shaped l ...
Ch. 11: Inflation and Unemployment
... by working at jobs not appropriate to their skills or education. It is sometimes argued that the official rate understates unemployment by ignoring the underplayed workers. Discouraged Workers-Unemployment statistics do not take into account unemployed people who have given up looking for work. Dish ...
... by working at jobs not appropriate to their skills or education. It is sometimes argued that the official rate understates unemployment by ignoring the underplayed workers. Discouraged Workers-Unemployment statistics do not take into account unemployed people who have given up looking for work. Dish ...
Economics Paper-II
... In any economy inflation rate is 4%, income growth rate is 6%. The economy seeks to ensure stable exchange rate. Then under monetary approach money growth rate must be (A) ...
... In any economy inflation rate is 4%, income growth rate is 6%. The economy seeks to ensure stable exchange rate. Then under monetary approach money growth rate must be (A) ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... The paper by John Cochrane is perhaps the one that is most directly addressed to policy analysis. Applying the so-called fiscal theory of the price level to the postwar United States, Cochrane asks to what degree the history of U.S. inflation can be explained by fiscal factors alone, and how fiscal ...
... The paper by John Cochrane is perhaps the one that is most directly addressed to policy analysis. Applying the so-called fiscal theory of the price level to the postwar United States, Cochrane asks to what degree the history of U.S. inflation can be explained by fiscal factors alone, and how fiscal ...
Course Student Name
... Click “Back” twice and you will again see the “State of the Macroeconomy.” Select “Recession” and click “Continue.” You will see the “Initial State of the Economy.” Print out or copy this table for future reference. What is the initial unemployment rate? _____ Click “Continue.” In order to combat a ...
... Click “Back” twice and you will again see the “State of the Macroeconomy.” Select “Recession” and click “Continue.” You will see the “Initial State of the Economy.” Print out or copy this table for future reference. What is the initial unemployment rate? _____ Click “Continue.” In order to combat a ...
SU_12_Study Guide 2
... 10. What is the current economic situation in the U.S.? How bad was the Great Recession compared to the Great Depression and previous recessions? What economic indicators have rebounded since the Great Recession ended? What are projections for GDP, unemployment, and inflation in the next few years? ...
... 10. What is the current economic situation in the U.S.? How bad was the Great Recession compared to the Great Depression and previous recessions? What economic indicators have rebounded since the Great Recession ended? What are projections for GDP, unemployment, and inflation in the next few years? ...
Economic Growth, Business Cycles, Unemployment, and Inflation
... The average length of expansions has increased while the average length of contractions has decreased. ...
... The average length of expansions has increased while the average length of contractions has decreased. ...
Introduction to Economics: Training: Lecture3 .Unemployment
... themselves unemployed may actually not want work, and some people who would like to work, and some people who would like to work have left the labor force after an unsuccessful search. In the U.S. economy, most people who become unemployed find work within a short period of time. Nonetheless, most u ...
... themselves unemployed may actually not want work, and some people who would like to work, and some people who would like to work have left the labor force after an unsuccessful search. In the U.S. economy, most people who become unemployed find work within a short period of time. Nonetheless, most u ...
View Slide Show for Lesson 11-1
... to try to close a recessionary gap. In recent years, it appears that an inflation rate of 3 percent or a prediction that the 3 percent rate will be exceeded is cause for restrictive monetary policy by the Fed. ...
... to try to close a recessionary gap. In recent years, it appears that an inflation rate of 3 percent or a prediction that the 3 percent rate will be exceeded is cause for restrictive monetary policy by the Fed. ...
Answers to Sample Short Free-Response Questions
... 1. In the 1960s many newspaper reporters were accustomed to reporting a decrease in the unemployment rate when the overall price level increased. However, in the 1970s, when increases in the overall price level were accompanied by increases, not decreases, in the unemployment rate, some reporters we ...
... 1. In the 1960s many newspaper reporters were accustomed to reporting a decrease in the unemployment rate when the overall price level increased. However, in the 1970s, when increases in the overall price level were accompanied by increases, not decreases, in the unemployment rate, some reporters we ...
unemployment
... • In a recession, an expansionary AD policy can increase inflation back to the anticipated levels that were used as a basis for nominal wage contracts and pricing (Keynesian view). • However, monetary policy cannot be used to lower u below ū. • Indeed any attempt to do so would only result in ever i ...
... • In a recession, an expansionary AD policy can increase inflation back to the anticipated levels that were used as a basis for nominal wage contracts and pricing (Keynesian view). • However, monetary policy cannot be used to lower u below ū. • Indeed any attempt to do so would only result in ever i ...
Suppose that the economy is in a long
... a. The current state of the economy is shown in Figure 2. The aggregate-demand curve and short-run aggregate-supply curve intersect at the same point on the long-run aggregate-supply curve. b. If the central bank increases the money supply, aggregate demand shifts to the right (to point B). In the s ...
... a. The current state of the economy is shown in Figure 2. The aggregate-demand curve and short-run aggregate-supply curve intersect at the same point on the long-run aggregate-supply curve. b. If the central bank increases the money supply, aggregate demand shifts to the right (to point B). In the s ...
chap9-1
... Anything that changes C, I, G, or X at a given price level will cause the AD curve to shift Effects of: ...
... Anything that changes C, I, G, or X at a given price level will cause the AD curve to shift Effects of: ...
1 Economics 259 Midterm I – Spring 2014 Name: You have 50
... countries where money supply grows faster experience __________ rate of inflation, while if one looks at the relationship between money inflation and money growth in the US across time, periods with relatively higher money growth rate are also periods of relatively _________ inflation. a. lower; hig ...
... countries where money supply grows faster experience __________ rate of inflation, while if one looks at the relationship between money inflation and money growth in the US across time, periods with relatively higher money growth rate are also periods of relatively _________ inflation. a. lower; hig ...
Problem Areas in AP Economics Real Interest rate
... Real Interest rate – cost of borrowing the money to buy the capital goods (machinery) If rate of return is greater than the cost of the interest, the investment will be profitable Ex: 10% rate of return is greater than 7% interest = profitable decision Even if capital is financed by savings, it give ...
... Real Interest rate – cost of borrowing the money to buy the capital goods (machinery) If rate of return is greater than the cost of the interest, the investment will be profitable Ex: 10% rate of return is greater than 7% interest = profitable decision Even if capital is financed by savings, it give ...
AS/AD Model part 2
... Remember, inflation is a monetary phenomenon, and caused by shifts in the AD. ...
... Remember, inflation is a monetary phenomenon, and caused by shifts in the AD. ...
Community Leaders Breakfast Hotel De Anza, San Jose, CA
... And increased mortgage rates as well as declines in stock market wealth appear to have brought the temperature of the Bay Area’s sizzling housing market down a few ...
... And increased mortgage rates as well as declines in stock market wealth appear to have brought the temperature of the Bay Area’s sizzling housing market down a few ...
The Macro Goal Variables
... Real GDP (Y) -- The total production of final goods and services over a period of time, expressed in constant prices of a base year. Why Real GDP (GDP in constant dollars), instead of Nominal GDP (GDP in current dollars)? ...
... Real GDP (Y) -- The total production of final goods and services over a period of time, expressed in constant prices of a base year. Why Real GDP (GDP in constant dollars), instead of Nominal GDP (GDP in current dollars)? ...
The Short-Run Phillips Curve
... in the short run but not in the long run. • How quickly the short-run trade-off disappears depends on how quickly expectations adjust. • The theory of rational expectations suggests that the sacrifice-ratio could be much smaller ...
... in the short run but not in the long run. • How quickly the short-run trade-off disappears depends on how quickly expectations adjust. • The theory of rational expectations suggests that the sacrifice-ratio could be much smaller ...
Chapter 4 Global Economies
... inflation unemployment 6. Employee Productivity Productivity is output per worker hour. It is usually measured over a defined period of time, such as a week, month, or year. Businesses can increase their productivity by investing in new equipment or facilities that increase efficiency, providing ...
... inflation unemployment 6. Employee Productivity Productivity is output per worker hour. It is usually measured over a defined period of time, such as a week, month, or year. Businesses can increase their productivity by investing in new equipment or facilities that increase efficiency, providing ...
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.