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... Thomson Learning™ is a trademark used herein under license. ALL RIGHTS RESERVED. Instructors of classes adopting EXPLORING ECONOMICS, Second Edition by Robert L. Sexton as an assigned textbook may reproduce material from this publication for classroom use or in a secure electronic network environmen ...
An Assessment of Price and Wage Setting in South Africa and
An Assessment of Price and Wage Setting in South Africa and

... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
IS-LM
IS-LM

... 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were correct, since the 1973–1974 shock seems to have ...
Wage-led growth: Concept, theories and policies  pdf
Wage-led growth: Concept, theories and policies pdf

Economic Survey of Singapore 2008 Prices Box 4.1
Economic Survey of Singapore 2008 Prices Box 4.1

... The costs of deflation depend on its source as well as on its extent and duration. Supply-driven deflation may not create significant costs, particularly if it is accompanied by strong output growth. In this scenario, deflation can be seen as an adjustment to a new equilibrium. However, aggregate de ...
Notes on Unemployment Chapter:
Notes on Unemployment Chapter:

... know what it means to be unemployed. Unemployment reflects someone who is not working but is searching for work. Thus the unemployment rate measure people looking for work. The “Natural Rate of Unemployment”: this is the rate of unemployment that economy will have in the long run. Think of it as the ...
Mankiw 6e PowerPoints
Mankiw 6e PowerPoints

Chronic Deflation in Japan - Faculty of Business and Economics
Chronic Deflation in Japan - Faculty of Business and Economics

... deterioration of the output gap has been accompanied with a decline in the potential growth rate, researchers have been trying to explain the link between two. One strand of explanations of the negative output gap suggests that it is caused by a decline in the natural rate of interest and the zero l ...
Solutions to Quick Quizzes
Solutions to Quick Quizzes

... tools and technology. Prices rise when the government prints too much money because more money in circulation reduces the value of money, causing inflation. Society faces a short-run trade-off between inflation and unemployment that is only temporary. Policymakers have some short-term ability to exp ...
UK BUSINESS CONFIDENCE MONITOR Q1 2009 Yorkshire & Humber Summary Report
UK BUSINESS CONFIDENCE MONITOR Q1 2009 Yorkshire & Humber Summary Report

... Demand in the economy is contracting and firms are shedding jobs as a result. Claimantcount unemployment rose by 213,000 in Q4 2008. Through 2009 we anticipate the rise in unemployment will be severe; the claimant count could almost double to reach 2.1m by the end of 2009. The latest UK Business Con ...
PPT
PPT

... drug trade will attract new entrants into the supply side and eventually push prices back down. The end result should be higher drug consumption. The new equilibrium price cannot be determined. ...
Schmidt, Ingo_Luxemburg_Accumulation of
Schmidt, Ingo_Luxemburg_Accumulation of

the impact of fiscal policy on the output and inflation
the impact of fiscal policy on the output and inflation

... will decline in response to increased government spending, while the IS-LM model (Keynesian) indicated otherwise. Therefore the debate about the relationship between fiscal policies to economic activity continues. Regardless of the debate, most studies still show that there is a relationship that is ...
Monetary policy in the euro area`s neighbouring countries
Monetary policy in the euro area`s neighbouring countries

$doc.title

... demand causes a recession, which gradually dissipates over time. The impact of the fall in demand on output is close to zero at 16 ...
6010 T : M
6010 T : M

... appropriate policy course emerged. Buchanan and Wagner (1977) argued that the Keynesian theory destroyed the classical thesis, strengthened by consititutional rules, that budgets should balance and that deficits were immoral. Until the early 1970s, the main - if not the only - argument to denounce f ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: Quantifying Systemic Risk
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: Quantifying Systemic Risk

... real risk and systemic financial risk, as well as stress tests of these indicators as impulse responses to structurally identifiable shocks. This framework is novel in two respects. First, it uses a dynamic factor model with structural identification based on theory. This permits us to extract infor ...
4A FIRST LOOK AT MACROECONOMICS
4A FIRST LOOK AT MACROECONOMICS

... A) fluctuates from year to year but is always below potential GDP. B) fluctuates around potential GDP. C) grows at a constant 3 to 4 percent per year. D) can be called potential GDP when it is adjusted for price changes. Answer: B ...
6010 - Reference
6010 - Reference

... appropriate policy course emerged. Buchanan and Wagner (1977) argued that the Keynesian theory destroyed the classical thesis, strengthened by consititutional rules, that budgets should balance and that deficits were immoral. Until the early 1970s, the main - if not the only - argument to denounce f ...
Inflation And Its Relationship To Unemployment And Growth
Inflation And Its Relationship To Unemployment And Growth

... It makes sense to assume that the shortrun Phillips curves moves up or down as expectations of inflation change. ...
The Labor Market, Unemployment, and Inflation
The Labor Market, Unemployment, and Inflation

... • The fact that people are willing to work at a wage higher than the current wage does not mean that the labor market is not working. • The term sticky wages refers to the downward rigidity of wages as an explanation for the existence of unemployment. ...
The Labor Market, Unemployment, and Inflation
The Labor Market, Unemployment, and Inflation

... • The fact that people are willing to work at a wage higher than the current wage does not mean that the labor market is not working. • The term sticky wages refers to the downward rigidity of wages as an explanation for the existence of unemployment. ...
Kauai`s Outlook is Buoyed by Strong Tourism
Kauai`s Outlook is Buoyed by Strong Tourism

... drought. However, it employs 120 workers as a base and an additional 60 during harvesting. A big concern for the company is the spread of the coffee berry borer, which has added 20% to growing costs in Kona. Another part of Kauai’s agriculture export sector is Kauai Shrimp, now the third largest bro ...
Meeting the Challenge of Asia
Meeting the Challenge of Asia

... usual. Thus, it is useful to complement this measure with expectations extracted from inflation derivatives. In particular, inflation-linked swap rates provide a measure of the expected inflation rates at short horizons (one and two years ahead, for example).8 One-year inflation swap rates fell shar ...
Did Greenspan Deserve Support for Another Term?
Did Greenspan Deserve Support for Another Term?

... Greenspan did have one more trick up his sleeve, however, and so he played the deflation card—and he did so with all the guile at his command. Deflation phobia had been ignited earlier in the United States by a few isolated monthly declines in consumer and producer prices that occurred in the latter ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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