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Chapter 10 Learning Objectives Macroeconomics Unemployment
Chapter 10 Learning Objectives Macroeconomics Unemployment

... • Business fluctuations used to be called business cycles, but that term no longer seems appropriate because cycle implies regular or automatic recurrence, and we normally don’t observe automatic recurrent fluctuations in general business and economic activity. Copyright © 2005 Pearson Addison-Wesle ...
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... Aggregate demand is the quantity of real GDP that will be demanded at various price levels. The quantity of real output that is demanded is inversely related to the price level. Aggregate supply is the quantity of real GDP that will be supplied at various price levels. The quantity of real output th ...
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CHAPTER 3 THE FED AND INTEREST RATES CHAPTER

... As you consider the historical material in these chapters on the Fed, reflect on the recurring cycles in economic activity: boom and bust, bull and bear, advance and retreat, try and fail, try and succeed, try again. Modern central banks were created in large part to smooth out business cycles. Not ...
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Institutions and Economic Growth: What Model of Capitalism for

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Housing`s Role in the Slow Recovery

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Estimating Indexes of Coincident and Leading Indicators

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Monetary Policy and Aggregate Demand

... when prices are sticky. For example, in the short-run, expansionary monetary policies shift the aggregate demand curve to the right, which results in an increase in real GDP and an increase in the aggregate price level. However, in the long run, when all wages and prices are fully flexible, expansio ...
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... their bets and act as if part, though not all, of their raise represents an increase in their real wage. This induces them to work more hours, increasing output and employment. Because imperfect information models require that all markets be in equilibrium, they cannot explain the existence of invol ...
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intersession 2015 - Portal

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The Recent Recession, the Current Recovery, and Stock Prices

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... alcohol and illicit drugs among older adults may mean short-term cuts in treatment budgets not as important as cuts in prevention right now • Rise in illicit drug use among youth & young adults means need for future treatment will rise, however – Budget cuts for treatment must only be temporary • Yo ...
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... 1. Economists try to address their subject with a scientist’s objectivity. Like all scientists, they make appropriate assumptions and build simplified models in order to understand the world around them. Two simple economic models are the circular-flow diagram and the production possibilities fronti ...
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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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