Review Sheet for Unit IV Exam Ch. 12.1, 12.2, 12.3, 13.1, 13.2, 13.3
... ABOUT THE NOTE CARDS: You are allowed – and encouraged – to create and use a note card (one side) to help remember concepts. This must be hand-written and completely original. Photocopies and/or computer printouts will not be allowed. Do this by hand, and do your own work. Failure to follow these ru ...
... ABOUT THE NOTE CARDS: You are allowed – and encouraged – to create and use a note card (one side) to help remember concepts. This must be hand-written and completely original. Photocopies and/or computer printouts will not be allowed. Do this by hand, and do your own work. Failure to follow these ru ...
Question 2: IS-LM and the aggregate demand. Explain what are the
... Despite many shortcomings, the IS-LM model has been one of the main tools for macroeconomic teaching and policy analysis. The IS-LM model describes the aggregate demand of the economy using the relationship between output and interest rates. In a closed economy, in the goods market, a rise in intere ...
... Despite many shortcomings, the IS-LM model has been one of the main tools for macroeconomic teaching and policy analysis. The IS-LM model describes the aggregate demand of the economy using the relationship between output and interest rates. In a closed economy, in the goods market, a rise in intere ...
Final Exam Section 2 Study Questions. 1) State what happens to the
... statement correct or incorrect? State the factors that shift the short run Phillips curve. 10) “As the economy moves upward along its aggregate supply curve, the economy also moves upward along its short-run Phillips curve.” Is the previous statement correct or incorrect? Briefly explain your answer ...
... statement correct or incorrect? State the factors that shift the short run Phillips curve. 10) “As the economy moves upward along its aggregate supply curve, the economy also moves upward along its short-run Phillips curve.” Is the previous statement correct or incorrect? Briefly explain your answer ...
Econ 1120 * INTRO MACRO * Spring
... c) The government wants to take advantage of this situation to boost the economy. Considering OPEC’s decision, evaluate short-run and long-run expansionary policy effects (5 Points) 1) SR: In the short-run, OPEC’s decision makes them happy because the favorable supply-shock has improved the trade-of ...
... c) The government wants to take advantage of this situation to boost the economy. Considering OPEC’s decision, evaluate short-run and long-run expansionary policy effects (5 Points) 1) SR: In the short-run, OPEC’s decision makes them happy because the favorable supply-shock has improved the trade-of ...
Lecture 20
... consumer Demand. Policy solution - government spending? Pump up the economy with temporary spending and tax cuts to create more disposable income and consumer demand and investment. ...
... consumer Demand. Policy solution - government spending? Pump up the economy with temporary spending and tax cuts to create more disposable income and consumer demand and investment. ...
Inflation - University of Hull
... Julius DeAnne (1998) Inflation and growth in a service economy, Bank of England Quarterly Bulletine, November, pp. 338-346. Kydland, Finn E. and Prescott, Edward C. 1977: Rules Rather than Discretion: The Inconsistency of Optimal Plans, JPE vol. 85, no. 3, pp. 473-491. Layard R and S. Nickeel (1990) ...
... Julius DeAnne (1998) Inflation and growth in a service economy, Bank of England Quarterly Bulletine, November, pp. 338-346. Kydland, Finn E. and Prescott, Edward C. 1977: Rules Rather than Discretion: The Inconsistency of Optimal Plans, JPE vol. 85, no. 3, pp. 473-491. Layard R and S. Nickeel (1990) ...
Kevin P. Hoover THE RATIONAL EXPECTATIONS REVOLUTION: AN ASSESSMENT
... classical macroeconomics have contributed a usable alternative to the quantity theory, particularly in a world with national domestic economies open to international trade and international financial I ...
... classical macroeconomics have contributed a usable alternative to the quantity theory, particularly in a world with national domestic economies open to international trade and international financial I ...
ECON366 - KONSTANTINOS KANELLOPOULOS
... different times in different areas. (Ski instructors are only needed in winter; college students tend to enter the labor force temporarily during the summer, etc.) Cyclical unemployment refers to the unemployment that occurs as the economy enters a downturn. ...
... different times in different areas. (Ski instructors are only needed in winter; college students tend to enter the labor force temporarily during the summer, etc.) Cyclical unemployment refers to the unemployment that occurs as the economy enters a downturn. ...
Unit 4—Business Cycles
... A. Output and income increase B. Output and income level out C. Must be a decrease in rGDP for two cycles D. As contraction continues, inflationary pressures increase ...
... A. Output and income increase B. Output and income level out C. Must be a decrease in rGDP for two cycles D. As contraction continues, inflationary pressures increase ...
Self-Check (Units 1-3)
... in Germany in the early 1920s, and Argentina in the early 1980s, is known as (3)………………. Prices in general tend to remain at the same anticipated level unless there are demand-pull or cost-push shocks. If aggregate demand exceeds what a country can produce at full (4)………. , prices will rise {includin ...
... in Germany in the early 1920s, and Argentina in the early 1980s, is known as (3)………………. Prices in general tend to remain at the same anticipated level unless there are demand-pull or cost-push shocks. If aggregate demand exceeds what a country can produce at full (4)………. , prices will rise {includin ...
Ch.16-Q1. In the economy of Scottopia, policy makers want to lower
... Ch16-Q12: The economy of Brittania has been suffering from high inflation with an unemployment rate equal to its natural rate. Policy makers would like ANSWER: A major obstacle to achieving disinflation is that the public has come to expect continuing inflation. To reduce inflation, it is often nec ...
... Ch16-Q12: The economy of Brittania has been suffering from high inflation with an unemployment rate equal to its natural rate. Policy makers would like ANSWER: A major obstacle to achieving disinflation is that the public has come to expect continuing inflation. To reduce inflation, it is often nec ...
Warm Up - Cloudfront.net
... *Creditors & individuals that live on Fixed Income=losers!!! *Debtors=winners!!! ...
... *Creditors & individuals that live on Fixed Income=losers!!! *Debtors=winners!!! ...
Goals
... The science of macroeconomics is positive economics: the study of economic facts and theories and how they work. Policy practice of macroeconomics is concerned with policies to achieve ...
... The science of macroeconomics is positive economics: the study of economic facts and theories and how they work. Policy practice of macroeconomics is concerned with policies to achieve ...
1 1) Consider I = b +b Y-b
... All variables and functions are defined as they were in lectures and the textbook. Develop an Aggregate Supply (AS) relationship that relates the price level in the economy to the expected price level, the level of firm competition (m), labor market conditions (z), and the output level in the econom ...
... All variables and functions are defined as they were in lectures and the textbook. Develop an Aggregate Supply (AS) relationship that relates the price level in the economy to the expected price level, the level of firm competition (m), labor market conditions (z), and the output level in the econom ...
12 - Brad DeLong
... policy mix that would keep the target level of production and employment unchanged, but that with lower interest rates would promise higher investment and faster productivity growth: an "investment-led recovery." ...
... policy mix that would keep the target level of production and employment unchanged, but that with lower interest rates would promise higher investment and faster productivity growth: an "investment-led recovery." ...
Take-Home Quiz
... TRUE/FALSE (0.5 POINTS EACH) 1. Fiat money is paper money that is backed by gold, silver or some other commodity. 2. When you voluntarily cook dinner for your family every Sunday night, the value of that service is included in gross domestic product (GDP). 3. Total household income will be equal to ...
... TRUE/FALSE (0.5 POINTS EACH) 1. Fiat money is paper money that is backed by gold, silver or some other commodity. 2. When you voluntarily cook dinner for your family every Sunday night, the value of that service is included in gross domestic product (GDP). 3. Total household income will be equal to ...
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.