Output Gap = Y
... Automatic vs. Discretionary Fiscal Policy Discretionary fiscal stabilization policy occurs when the government actively changes G and/or T in an effort to steer real GDP. Automatic fiscal stabilization occurs because of the design of the tax and transfer system: • as Y changes, transfers and taxes ...
... Automatic vs. Discretionary Fiscal Policy Discretionary fiscal stabilization policy occurs when the government actively changes G and/or T in an effort to steer real GDP. Automatic fiscal stabilization occurs because of the design of the tax and transfer system: • as Y changes, transfers and taxes ...
paper
... After the presentation of the Phillips curve as an empirical regularity (Phillips [1958]) economists and policy makers alike have tried to exploit it for policy purposes. Even before the oil shocks in the seventies and early eighties this has had mixed success only. With the advent of ”stag‡ation” t ...
... After the presentation of the Phillips curve as an empirical regularity (Phillips [1958]) economists and policy makers alike have tried to exploit it for policy purposes. Even before the oil shocks in the seventies and early eighties this has had mixed success only. With the advent of ”stag‡ation” t ...
North Carolina Economic Outlook
... annual increase in the aggregate value of goods and services produced in the nation (gross domestic product, or GDP) - has been one-third slower than the post-World War II average. The same is the case with annual job growth, which has been one-fourth slower than the long-run average. This sub-par p ...
... annual increase in the aggregate value of goods and services produced in the nation (gross domestic product, or GDP) - has been one-third slower than the post-World War II average. The same is the case with annual job growth, which has been one-fourth slower than the long-run average. This sub-par p ...
Lecture 1: Introduction to Macroeconomics
... works. We can do a better job of explaining depressions such as 1929-33 (in part thanks to more research on what actually happened to the economy during that period). We can also discuss topics Keynesians never dreamt of discussing, such as growth and development, inflation, and international trade, ...
... works. We can do a better job of explaining depressions such as 1929-33 (in part thanks to more research on what actually happened to the economy during that period). We can also discuss topics Keynesians never dreamt of discussing, such as growth and development, inflation, and international trade, ...
What Is Price Level Stability?
... There are two price level problems When the price level is stable, the problem is to prevent inflation from breaking out. When inflation is already present, the problem is to reduce its rate and restore price level stability while doing the least possible damage to real GDP growth. ...
... There are two price level problems When the price level is stable, the problem is to prevent inflation from breaking out. When inflation is already present, the problem is to reduce its rate and restore price level stability while doing the least possible damage to real GDP growth. ...
DEVELOPMENT OF MARKET ECONOMY IS AN
... Some relevant conclusions and suggestions for possible policy of institutional transformation will also be outlined. Conceived as the substitution of a centrally planned model of economy by an economic and political framework of efficient market economies, the process of transition was based on opti ...
... Some relevant conclusions and suggestions for possible policy of institutional transformation will also be outlined. Conceived as the substitution of a centrally planned model of economy by an economic and political framework of efficient market economies, the process of transition was based on opti ...
THE POLITICAL ECONOMY OF GLOBAL ECONOMIC DISGOVERNANCE Luiz Carlos Bresser-Pereira
... but by the creditor banks that, one by one, suspended the rollover of the debts. This crisis, besides involving enormous costs for the developing countries (they are up to today paying the price of this crisis with decreased rates of growth), represented a threat to the large international banks, an ...
... but by the creditor banks that, one by one, suspended the rollover of the debts. This crisis, besides involving enormous costs for the developing countries (they are up to today paying the price of this crisis with decreased rates of growth), represented a threat to the large international banks, an ...
Chapter X - mcdonald - University of Illinois at Chicago
... the obvious facts that the capitalist economies of the day were not generating anything close to full employment, and that this state of affairs had existed for several years. The economic theory of the time, which Keynes called the postulates of classical economics and dismissed in a few pages, was ...
... the obvious facts that the capitalist economies of the day were not generating anything close to full employment, and that this state of affairs had existed for several years. The economic theory of the time, which Keynes called the postulates of classical economics and dismissed in a few pages, was ...
1994-10
... reflect a mixture of contractionary and expansionary policies. However, it has been argued that the deliberate policy measures have had relatively little effect towards the speed of recovery (Schedvin, 1970; Valentine, 1988). This paper examines the effectiveness of various economic policies used to ...
... reflect a mixture of contractionary and expansionary policies. However, it has been argued that the deliberate policy measures have had relatively little effect towards the speed of recovery (Schedvin, 1970; Valentine, 1988). This paper examines the effectiveness of various economic policies used to ...
Chapter 1 - Schmidt
... positive or negative relationship between time and house prices? Convert the data series on house prices into an index using 2005 as the base year. Calculate the percentage increase in house prices for each year. ...
... positive or negative relationship between time and house prices? Convert the data series on house prices into an index using 2005 as the base year. Calculate the percentage increase in house prices for each year. ...
the Canadian economy`s growth potential enters a new
... average annual real GDP change rose to 5.7% between 1997 and 2000. The number of hours worked rose an average 2.6%, while labour productivity advanced 2.9%3, thanks to the plethora of investments made during these years, particularly in the tech sector, with the Y2K problem. The decade from 2001 t ...
... average annual real GDP change rose to 5.7% between 1997 and 2000. The number of hours worked rose an average 2.6%, while labour productivity advanced 2.9%3, thanks to the plethora of investments made during these years, particularly in the tech sector, with the Y2K problem. The decade from 2001 t ...
lecture3_2008 - Dr. Rajeev Dhawan
... – Most of the recessions identified by our procedures consist of two or more quarters of declining real GDP, but not all of them – We consider the depth as well as the duration of the decline in economic activity. – Second, we use a broader array of indicators than just real GDP – Third, we use mont ...
... – Most of the recessions identified by our procedures consist of two or more quarters of declining real GDP, but not all of them – We consider the depth as well as the duration of the decline in economic activity. – Second, we use a broader array of indicators than just real GDP – Third, we use mont ...
dynamic AD
... the economy fluctuates. It occurs when there are no shocks and inflation has stabilized. • In words, the long-run equilibrium is described as follows: Output and the real interest rate are at their natural values, inflation and expected inflation are at the target rate of inflation, and the nominal ...
... the economy fluctuates. It occurs when there are no shocks and inflation has stabilized. • In words, the long-run equilibrium is described as follows: Output and the real interest rate are at their natural values, inflation and expected inflation are at the target rate of inflation, and the nominal ...
Unemployment and Inflation
... Seasonal unemployment is caused by seasonal shifts in labor supply and demand ...
... Seasonal unemployment is caused by seasonal shifts in labor supply and demand ...
Business Cycle Accounting: A Comparison of China and - S
... its unprecedented development experienced a real average rate of growth of 9.8 percent over the 1978-2006 period, while its GDP per capita increased more than 7-fold. These developments have not only made China and India increasingly integrated into world trade and financial systems, but due to freq ...
... its unprecedented development experienced a real average rate of growth of 9.8 percent over the 1978-2006 period, while its GDP per capita increased more than 7-fold. These developments have not only made China and India increasingly integrated into world trade and financial systems, but due to freq ...
Chapter 9 Global Economic Growth and Development
... Copyright © 2010 Pearson Addison-Wesley. All rights reserved. ...
... Copyright © 2010 Pearson Addison-Wesley. All rights reserved. ...
dynamic AD
... the economy fluctuates. It occurs when there are no shocks and inflation has stabilized. • In words, the long-run equilibrium is described as follows: Output and the real interest rate are at their natural values, inflation and expected inflation are at the target rate of inflation, and the nominal ...
... the economy fluctuates. It occurs when there are no shocks and inflation has stabilized. • In words, the long-run equilibrium is described as follows: Output and the real interest rate are at their natural values, inflation and expected inflation are at the target rate of inflation, and the nominal ...
inflasi - E-conosmart.com
... • Inflation can only happen if there is a volume increase in the money supply (both additions currency and demand deposits). • Without an increase in the money supply then there will be inflation, despite the rise in prices. • For example, in case of crop failures, prices tend to rise, but the incre ...
... • Inflation can only happen if there is a volume increase in the money supply (both additions currency and demand deposits). • Without an increase in the money supply then there will be inflation, despite the rise in prices. • For example, in case of crop failures, prices tend to rise, but the incre ...
NBER WORKING PAPER SERIES EXPECTED FISCAL POLICY AND THE RECESSION OF 1982
... Variable definitions are given in Table 3. Equation (1) gives aggregate demand d as a function output y, autonomous investment i, the exogenous component of fiscal policy f, and the real long—term (actually ...
... Variable definitions are given in Table 3. Equation (1) gives aggregate demand d as a function output y, autonomous investment i, the exogenous component of fiscal policy f, and the real long—term (actually ...