Deflation fears in developed economies
... net present value of expected yields may cause a contraction in investment activity. A decrease in demand pushes prices downwards, which may increase the real interest rate further, potentially triggering a negative spiral. In this mechanism, the stock of participants’ debts is disregarded and we s ...
... net present value of expected yields may cause a contraction in investment activity. A decrease in demand pushes prices downwards, which may increase the real interest rate further, potentially triggering a negative spiral. In this mechanism, the stock of participants’ debts is disregarded and we s ...
ch09lecture
... which technology advances—is not determined by chance. The pace at which new discoveries are made depends on how many people are looking for a new technology and how intensively they are looking. © 2013 Pearson ...
... which technology advances—is not determined by chance. The pace at which new discoveries are made depends on how many people are looking for a new technology and how intensively they are looking. © 2013 Pearson ...
Inflation, deflation and purchasing power
... there appeared to be a trade-off between unemployment and inflation: any attempt by governments to reduce unemployment was likely to lead to increased inflation. an inverse relation between inflation and unemployment In the 70s the curve appeared to break down as the economy suffered from unem ...
... there appeared to be a trade-off between unemployment and inflation: any attempt by governments to reduce unemployment was likely to lead to increased inflation. an inverse relation between inflation and unemployment In the 70s the curve appeared to break down as the economy suffered from unem ...
2A: ECONOMICS – MARKETS
... and distribution of scarce resources that determine our wealth and wellbeing. Economics develops the knowledge, reasoning and interpretation skills that form an important component of understanding personal, business and government behaviour at the local, national and global levels. The Economics co ...
... and distribution of scarce resources that determine our wealth and wellbeing. Economics develops the knowledge, reasoning and interpretation skills that form an important component of understanding personal, business and government behaviour at the local, national and global levels. The Economics co ...
What can monetary policy do?
... One theme which runs through my comments is the gap between how policy makers in central banks view the way in which monetary policy works and the baseline model used by many economists working on theoretical analysis of monetary policy – most of which is done in universities and research institutes ...
... One theme which runs through my comments is the gap between how policy makers in central banks view the way in which monetary policy works and the baseline model used by many economists working on theoretical analysis of monetary policy – most of which is done in universities and research institutes ...
Introduction
... or 3 percent) stable inflation is desirable. For example, this point of view is advocated by Lawrence Summers (1991). However, Alan Greenspan declares that his long-term monetary goal is stable prices and zero inflation.3 Nevertheless, very few countries with good macroeconomic dynamics show close t ...
... or 3 percent) stable inflation is desirable. For example, this point of view is advocated by Lawrence Summers (1991). However, Alan Greenspan declares that his long-term monetary goal is stable prices and zero inflation.3 Nevertheless, very few countries with good macroeconomic dynamics show close t ...
Fiscal Expansion, the Budget Deficit and the Economy: Norway
... cyclical adjustment, and on the particular choice of exogenous variables and error terms that we imagine bring GDP to its reference level. Tax revenues at full employment will be quite different depending on whether we imagine that full employment is achieved by an increased propensity to consume or ...
... cyclical adjustment, and on the particular choice of exogenous variables and error terms that we imagine bring GDP to its reference level. Tax revenues at full employment will be quite different depending on whether we imagine that full employment is achieved by an increased propensity to consume or ...
Economic Geography and Economic Performance in Australia
... Innovation, leading to new products, services and business processes, is a key determinant of GDP per capita in the long run. Innovation is usually measured by business expenditure on R&D. However, business expenditure on R&D is an imperfect measure of innovation. Innovation includes a much wider ar ...
... Innovation, leading to new products, services and business processes, is a key determinant of GDP per capita in the long run. Innovation is usually measured by business expenditure on R&D. However, business expenditure on R&D is an imperfect measure of innovation. Innovation includes a much wider ar ...
Chapter 11 - Pearson Canada
... Chapter 8. They know that economic growth is not necessarily smooth and that occasionally there are periods of recession in which output declines and unemployment rises. They know that recessions are typically followed by periods of recovery, in which the economy grows more strongly than normal. An ...
... Chapter 8. They know that economic growth is not necessarily smooth and that occasionally there are periods of recession in which output declines and unemployment rises. They know that recessions are typically followed by periods of recovery, in which the economy grows more strongly than normal. An ...
the aggregate demand curve
... THE AGGREGATE DEMAND CURVE THE AGGREGATE DEMAND CURVE: A WARNING • A demand curve shows the quantity of output demanded (by an individual) at every price, ceteris paribus • We assume that other prices and income are fixed • The reason that the quantity demanded of a particular good falls ...
... THE AGGREGATE DEMAND CURVE THE AGGREGATE DEMAND CURVE: A WARNING • A demand curve shows the quantity of output demanded (by an individual) at every price, ceteris paribus • We assume that other prices and income are fixed • The reason that the quantity demanded of a particular good falls ...
Expected questions for Board Examination 2015
... Q59. Define Aggregate demand and its components. Q60. Define APC, APS, MPC and MPS. Discuss the relationship among all these concepts. Q61. Define consumption and saving function. Explain breakeven point (BEP) on consumption and e Q62. Explain determination of equilibrium level of income and employm ...
... Q59. Define Aggregate demand and its components. Q60. Define APC, APS, MPC and MPS. Discuss the relationship among all these concepts. Q61. Define consumption and saving function. Explain breakeven point (BEP) on consumption and e Q62. Explain determination of equilibrium level of income and employm ...
Economics - University of Mysore
... Definition and scope of Agriculture Economics – Agriculture in a growing Economy – Subsistence Agriculture and its Modernization – Interdependence between Agriculture and Industry – Farming System : Traditional, Subsistence, Commercial, co-operative, Collective and State farming – Role of Agricultur ...
... Definition and scope of Agriculture Economics – Agriculture in a growing Economy – Subsistence Agriculture and its Modernization – Interdependence between Agriculture and Industry – Farming System : Traditional, Subsistence, Commercial, co-operative, Collective and State farming – Role of Agricultur ...
Real Interest Rate
... that the AS curve is horizontal. If the MPC is equal to 0.8, which of the following will necessarily be true? a. The APC will be less than the MPC. b. The government expenditure multiplier will be equal to 5. 1/.2 = ME of “5” c. A $10 increase in consumption spending will bring about an $80 increase ...
... that the AS curve is horizontal. If the MPC is equal to 0.8, which of the following will necessarily be true? a. The APC will be less than the MPC. b. The government expenditure multiplier will be equal to 5. 1/.2 = ME of “5” c. A $10 increase in consumption spending will bring about an $80 increase ...
Lec_notes_1021
... election of 1992 to Bill Clinton. There were undoubtedly many reasons for this outcome, but perhaps none was more significant than the weak news about the economy during 1992, particularly slow GDP growth. The economic figures also played a large role in the presidential election of 2012. The main t ...
... election of 1992 to Bill Clinton. There were undoubtedly many reasons for this outcome, but perhaps none was more significant than the weak news about the economy during 1992, particularly slow GDP growth. The economic figures also played a large role in the presidential election of 2012. The main t ...
The Productivity Puzzle - Federal Reserve Bank of St. Louis
... been called the Second Industrial Revolution. These inventions had an immediate effect, but they continued to dramatically increase productivity for six decades— from 1913 to 1972—as people found new ways to apply them.10 It has been proposed that the invention of the computer and internet might em ...
... been called the Second Industrial Revolution. These inventions had an immediate effect, but they continued to dramatically increase productivity for six decades— from 1913 to 1972—as people found new ways to apply them.10 It has been proposed that the invention of the computer and internet might em ...
Was ECB`s monetary policy optimal? - Fritz Breuss
... Nevertheless, this paper asks whether monetary policy could not have been improved. In the last three years, Euroland was confronted with the first external shock. Oil prices increased considerably, leading to an increase of headline inflation of over one percentage point in 2000/2001. With a specif ...
... Nevertheless, this paper asks whether monetary policy could not have been improved. In the last three years, Euroland was confronted with the first external shock. Oil prices increased considerably, leading to an increase of headline inflation of over one percentage point in 2000/2001. With a specif ...
