APE Macro Unit 3: Measurement of Economic Performance
... question: Why is it that what is good for the part is not necessarily good for the whole? Explain why the business cycle is important and why policy makers seek to diminish the severity of business cycles? Illustrate a business cycle. Explain what long-term growth is and how it affects a country’s s ...
... question: Why is it that what is good for the part is not necessarily good for the whole? Explain why the business cycle is important and why policy makers seek to diminish the severity of business cycles? Illustrate a business cycle. Explain what long-term growth is and how it affects a country’s s ...
C 1-5
... 1.a. As Figure 5-11 shows, a decrease in income taxes shifts both the AD-curve and the AS-curve to the right. The shift in the AD-curve tends to be fairly large and, in the very short run (when prices are fixed), leads to a significant increase in output without a change in prices. But in the long r ...
... 1.a. As Figure 5-11 shows, a decrease in income taxes shifts both the AD-curve and the AS-curve to the right. The shift in the AD-curve tends to be fairly large and, in the very short run (when prices are fixed), leads to a significant increase in output without a change in prices. But in the long r ...
International Trade and the Connection Between Excess Demand
... expenditures and real GDP. As has been indicated by Whelan (2000), the use of chainaggregated data can significantly influence empirical relationships. The problem is particularly acute for capital goods for which relative prices have declined over time.1 Therefore, we also report results for real ...
... expenditures and real GDP. As has been indicated by Whelan (2000), the use of chainaggregated data can significantly influence empirical relationships. The problem is particularly acute for capital goods for which relative prices have declined over time.1 Therefore, we also report results for real ...
Lecture 5 Unemployment
... Labor Force Participation Rate = labor force / population 16 and over ...
... Labor Force Participation Rate = labor force / population 16 and over ...
CH 12 - Kenston Local Schools
... prices because their costs to create products are rising. For example, when wages go up, the cost of producing a product goes up. Producers raise prices to cover the increased costs. If they do not raise prices, profits will shrink. ...
... prices because their costs to create products are rising. For example, when wages go up, the cost of producing a product goes up. Producers raise prices to cover the increased costs. If they do not raise prices, profits will shrink. ...
PRESS RELEASE SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING No: 2015-37
... percent month-on-month, recording a robust increase for the second month in a row. Thus, industrial production grew by 1.2 percent quarter-on-quarter and 1.3 percent year-on-year in the first quarter. Production developments have varied across industries. The weak external demand affected the textil ...
... percent month-on-month, recording a robust increase for the second month in a row. Thus, industrial production grew by 1.2 percent quarter-on-quarter and 1.3 percent year-on-year in the first quarter. Production developments have varied across industries. The weak external demand affected the textil ...
2: GDP VOCABULARY (with some additional terms) National
... Hyperinflation – Very rapid inflation whose impact on real output and employment is devastating ...
... Hyperinflation – Very rapid inflation whose impact on real output and employment is devastating ...
Chapter 8 Test Review Here is a brief review of the key points in this
... Be able to differentiate between a movement along the SRAS curve and a shift of the SRAS curve Be able to distinguish between the short run and long run as it pertains to AS Be able to distinguish between positive and negative supply shocks and how the SRAS curve reacts to both events • Be able to d ...
... Be able to differentiate between a movement along the SRAS curve and a shift of the SRAS curve Be able to distinguish between the short run and long run as it pertains to AS Be able to distinguish between positive and negative supply shocks and how the SRAS curve reacts to both events • Be able to d ...
1. Macroeconomics does not try to answer the question of: A) why do
... 25. In a simple graphical model of the supply and demand for pizza with the price of pizza measured vertically and the quantity of pizza measured horizontally: A) the supply curve slopes upward and to the right. B) the demand curve slopes upward and to the right. C) the supply curve slopes downward ...
... 25. In a simple graphical model of the supply and demand for pizza with the price of pizza measured vertically and the quantity of pizza measured horizontally: A) the supply curve slopes upward and to the right. B) the demand curve slopes upward and to the right. C) the supply curve slopes downward ...
Lecture 20
... economy like in Econ 1110. Instead… – It refers to all firms in all kinds of markets – even pricesetting firms (which do not even have individual supply curves). – When we draw a firm’s supply curve, we assume that input prices are constant. In macroeconomics, an increase in the overall price level ...
... economy like in Econ 1110. Instead… – It refers to all firms in all kinds of markets – even pricesetting firms (which do not even have individual supply curves). – When we draw a firm’s supply curve, we assume that input prices are constant. In macroeconomics, an increase in the overall price level ...
Understanding Deflation
... With output per hour rising faster than wages, unit labor costs decline. In competitive markets, this will induce firms to reduce their product prices, and the increase in general price level will tend to slow. For instance, as shown in Figure 3, the productivity surge in the U.S. in the late 1990s ...
... With output per hour rising faster than wages, unit labor costs decline. In competitive markets, this will induce firms to reduce their product prices, and the increase in general price level will tend to slow. For instance, as shown in Figure 3, the productivity surge in the U.S. in the late 1990s ...
PRESS RELEASE SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING No: 2015-06
... sluggish course of confidence indices may cause private final demand to provide limited support to growth. In the case of an additional slowdown in external demand and a sizeable decline in global growth rates, the decrease in commodity prices will pull inflation down but at the same time lead to no ...
... sluggish course of confidence indices may cause private final demand to provide limited support to growth. In the case of an additional slowdown in external demand and a sizeable decline in global growth rates, the decrease in commodity prices will pull inflation down but at the same time lead to no ...
ABOUT THE EXAM Multiple Choice Questions—two thirds of total
... not restate the question), and then quit. Extra verbiage does not gain the student any extra points, and may cause him to lose points i f he contradicts himself. He should then reread the question to make sure that he has, in fact, answered what was being asked. Complete sentences are not necessary, ...
... not restate the question), and then quit. Extra verbiage does not gain the student any extra points, and may cause him to lose points i f he contradicts himself. He should then reread the question to make sure that he has, in fact, answered what was being asked. Complete sentences are not necessary, ...
The International Implications of October 1979 (7 Oct 04).
... process had become more common throughout the world. The deceleration in inflation has been amazing. As recently as 1994 inflation in the emerging markets averaged 65 percent; over the last four years, in contrast, it has been around 6 percent. As inflation has declined so has its variability. In th ...
... process had become more common throughout the world. The deceleration in inflation has been amazing. As recently as 1994 inflation in the emerging markets averaged 65 percent; over the last four years, in contrast, it has been around 6 percent. As inflation has declined so has its variability. In th ...
natural rate of unemployment
... The conventional labor supply and demand competitive model is not realistic: 1. Wages are set by a bargain proces between workers and firms 2. Firms do not take prices as given; they have the ability to fix them, given their costs (imperfect competition or oligopoly) 3. Unemployment is not voluntary ...
... The conventional labor supply and demand competitive model is not realistic: 1. Wages are set by a bargain proces between workers and firms 2. Firms do not take prices as given; they have the ability to fix them, given their costs (imperfect competition or oligopoly) 3. Unemployment is not voluntary ...
The General Theory of Employment, Interest and Money
... “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us when the storm is long past, the ocean will be flat.” ...
... “The long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us when the storm is long past, the ocean will be flat.” ...
Unemployment
... jobs. Unemployment can bring with it serious problems both for those who are unemployed and for the country. With some people being out of work the country’s output will be below its potential level, tax revenue will be lower and more state benefits will have to be paid out. The unemployed, in addit ...
... jobs. Unemployment can bring with it serious problems both for those who are unemployed and for the country. With some people being out of work the country’s output will be below its potential level, tax revenue will be lower and more state benefits will have to be paid out. The unemployed, in addit ...
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.