Outline Notes
... Is there a rate of unemployment and level of GDP growth that the economy will adjust back to naturally after it is moved off-track? If the answer to this question is “yes” then there is no need for fiscal or monetary policy, except to make short-term adjustments. We just spent weeks going over the i ...
... Is there a rate of unemployment and level of GDP growth that the economy will adjust back to naturally after it is moved off-track? If the answer to this question is “yes” then there is no need for fiscal or monetary policy, except to make short-term adjustments. We just spent weeks going over the i ...
Trinidad and Tobago_en.pdf
... capital projects. For the 2015 fiscal year, the government is projecting a reduced fiscal deficit of 2.3% of GDP. This is based on an average oil price of US$ 80 per barrel and a gas price of US$ 2.75 per MMbtu. While gas prices remain above the level assumed, oil prices have fallen steadily since m ...
... capital projects. For the 2015 fiscal year, the government is projecting a reduced fiscal deficit of 2.3% of GDP. This is based on an average oil price of US$ 80 per barrel and a gas price of US$ 2.75 per MMbtu. While gas prices remain above the level assumed, oil prices have fallen steadily since m ...
Macro Economics Test 2
... 2) Structural: Long-Term & due to Technology changes 3) Seasonal : Short-Term 4) Cyclical: Long-Term & due to changes in real GDP Maintain Price Stability Price Level ↑→Value of Money (Purchasing power of money )↓ Price Level ↓ Value of money (Purchasing power of money)No demand on supply Less Jobs ...
... 2) Structural: Long-Term & due to Technology changes 3) Seasonal : Short-Term 4) Cyclical: Long-Term & due to changes in real GDP Maintain Price Stability Price Level ↑→Value of Money (Purchasing power of money )↓ Price Level ↓ Value of money (Purchasing power of money)No demand on supply Less Jobs ...
Unemployment rate - McGraw Hill Higher Education
... Labor Statistics (BLS). The CPI is based on what it costs an average family to ...
... Labor Statistics (BLS). The CPI is based on what it costs an average family to ...
Dr. SK Mitchell - people.vcu.edu
... Why do liberals tend to favor increased government spending while conservatives tend to favor decreased taxes as the preferred tool of expansionary fiscal policy? What are the reasons for and against counter-cyclical policies? In the case of a contractionary gap, which will result in the largest pri ...
... Why do liberals tend to favor increased government spending while conservatives tend to favor decreased taxes as the preferred tool of expansionary fiscal policy? What are the reasons for and against counter-cyclical policies? In the case of a contractionary gap, which will result in the largest pri ...
Document
... d. high inflation can be avoided but the rate of unemployment will increase e. the inflation and unemployment rates will be reduced simultaneously 15. Which of the following event(s) is most likely to leave the level of prices relatively unchanged while increasing the level of output? a. an increase ...
... d. high inflation can be avoided but the rate of unemployment will increase e. the inflation and unemployment rates will be reduced simultaneously 15. Which of the following event(s) is most likely to leave the level of prices relatively unchanged while increasing the level of output? a. an increase ...
Economic Growth and Instability
... Cost-push Inflation (or supply-side inflation): • Prices rise because of a rise in per-unit production costs (Unit cost = total input cost/units of output). • Output and employment decline while the price level is rising. • Supply shocks have been the major source of cost-push inflation. • These typ ...
... Cost-push Inflation (or supply-side inflation): • Prices rise because of a rise in per-unit production costs (Unit cost = total input cost/units of output). • Output and employment decline while the price level is rising. • Supply shocks have been the major source of cost-push inflation. • These typ ...
The IS – LM / AD – AS Model: A General Framework for
... ¾ The role of inflationary expectations: • The Keynesian prescription for disinflation is ...
... ¾ The role of inflationary expectations: • The Keynesian prescription for disinflation is ...
central-bank-independence-and-rules_money-and
... Now, central bank unexpectedly speeds up monetary growth. • Economy perks up. • Unemployment falls to U2. • Inflation rises to inf2 . ...
... Now, central bank unexpectedly speeds up monetary growth. • Economy perks up. • Unemployment falls to U2. • Inflation rises to inf2 . ...
Macro1 Exercise #4
... What happened to the aggregate expenditure curve? __________________. As a result of the increase in government spending, what happened to output, i.e., the equilibrium amount of real GDP? _______________. Click “AS-AD Graph”. Draw the resulting graph below. ...
... What happened to the aggregate expenditure curve? __________________. As a result of the increase in government spending, what happened to output, i.e., the equilibrium amount of real GDP? _______________. Click “AS-AD Graph”. Draw the resulting graph below. ...
Life under high rates of inflation Inflation and Income inequality
... capital sum. Compound interest - Apply interest on the capital plus all interest accrued to date. Indexation. The adjustment of nominal values for inflation, for example by means of cost-of-living adjustment clauses in labor contracts. ...
... capital sum. Compound interest - Apply interest on the capital plus all interest accrued to date. Indexation. The adjustment of nominal values for inflation, for example by means of cost-of-living adjustment clauses in labor contracts. ...
Chap31
... If aggregate demand is higher than expected, at AD', the economy in the short run will be at point b in both panels. If aggregate demand is lower than expected, at AD*, short-run equilibrium will be at point c, the price level (101) will be lower than expected, and output will be below the potential ...
... If aggregate demand is higher than expected, at AD', the economy in the short run will be at point b in both panels. If aggregate demand is lower than expected, at AD*, short-run equilibrium will be at point c, the price level (101) will be lower than expected, and output will be below the potential ...
Macro-Module 2- Introduction to Macroeconomics
... 16. What are the factors that can shift the aggregate supply curve? 17. Why are the short run and long run aggregate supply curves different? 18. Why fiscal policy is an important tool for managing economic fluctuations? 19. Which fiscal policies are considered expansionary and contractionary? Expl ...
... 16. What are the factors that can shift the aggregate supply curve? 17. Why are the short run and long run aggregate supply curves different? 18. Why fiscal policy is an important tool for managing economic fluctuations? 19. Which fiscal policies are considered expansionary and contractionary? Expl ...
Key - Personal.psu.edu
... show the movement from A to B. Be sure to completely label diagrams. h) Explain the movement from A to B in your labor market diagram... why does the level of labor input change? i) Why does output change? Name two reasons. j) Policy makers are not happy with these results (unemployment has risen!) ...
... show the movement from A to B. Be sure to completely label diagrams. h) Explain the movement from A to B in your labor market diagram... why does the level of labor input change? i) Why does output change? Name two reasons. j) Policy makers are not happy with these results (unemployment has risen!) ...
and unemployment
... – Behaviour according rational expectation models: unanticipated policy → decrease of output and increase of unemployment – Whenever credibility established → growth resumed and unemployment started to fall ...
... – Behaviour according rational expectation models: unanticipated policy → decrease of output and increase of unemployment – Whenever credibility established → growth resumed and unemployment started to fall ...
Makeup for Second 2006 Prelim
... Statistics Agency said Monday. On month, the inflation rate was 0.03%. In February, onyear inflation was 17.92% while the on-month reading was 0.58%. Core inflation - which excludes prices that are controlled by the government, such as energy and food - was 9.64% on year. March inflation was below t ...
... Statistics Agency said Monday. On month, the inflation rate was 0.03%. In February, onyear inflation was 17.92% while the on-month reading was 0.58%. Core inflation - which excludes prices that are controlled by the government, such as energy and food - was 9.64% on year. March inflation was below t ...
Krugman`s Chapter 32 PPT
... relationship between unemployment and inflation known as the short-run Phillips curve. This curve is shifted by changes in the expected rate of inflation. The long-run Phillips curve, which shows the relationship between unemployment and inflation once expectations have had time to adjust, is vertic ...
... relationship between unemployment and inflation known as the short-run Phillips curve. This curve is shifted by changes in the expected rate of inflation. The long-run Phillips curve, which shows the relationship between unemployment and inflation once expectations have had time to adjust, is vertic ...
MACRO Study Guide Before AP 2016
... 27) The short run long run Phillips demonstrates the tradeoff between inflation and unemployment. In the short run you can have lower unemployment only if you accept higher _________________ What is the trade off between unemployment and inflation in the long run? ________________________________ NO ...
... 27) The short run long run Phillips demonstrates the tradeoff between inflation and unemployment. In the short run you can have lower unemployment only if you accept higher _________________ What is the trade off between unemployment and inflation in the long run? ________________________________ NO ...
Chapter 7 Practice Problems
... or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate? A) 4 percent B) 6 percent C) 9 percent D) 27 percent 11. The unemployment rate in an economy is 6%. The total population of the economy is 290 million, and the size of the ...
... or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate? A) 4 percent B) 6 percent C) 9 percent D) 27 percent 11. The unemployment rate in an economy is 6%. The total population of the economy is 290 million, and the size of the ...
Macro_online_chapter_08_13e
... Macro Chapter 8 Economic Fluctuations, Unemployment, and Inflation ...
... Macro Chapter 8 Economic Fluctuations, Unemployment, and Inflation ...
AD-AS analysis to show external demand and supply
... level of unemployment have a direct and predictable effect on the level of price inflation. The accepted explanation during the 1960’s was that a fiscal stimulus, and increase in AD, would trigger the following sequence of responses: 1. An increase in the demand for labour as government spend ...
... level of unemployment have a direct and predictable effect on the level of price inflation. The accepted explanation during the 1960’s was that a fiscal stimulus, and increase in AD, would trigger the following sequence of responses: 1. An increase in the demand for labour as government spend ...
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.