Is U.S. economic growth understated?
... The current economic recovery is almost seven years old. Officially, real GDP has averaged just 2.1% annualized growth, just above the Mendoza Line! However, what would this recovery look like if productivity had actually performed as suggested by the movement in the real wage rate? Chart 5 compares ...
... The current economic recovery is almost seven years old. Officially, real GDP has averaged just 2.1% annualized growth, just above the Mendoza Line! However, what would this recovery look like if productivity had actually performed as suggested by the movement in the real wage rate? Chart 5 compares ...
Modern Macro Economics
... Starting at full employment, an increase in the supply of money from Ms0 to Ms1 will initially reduce interest rates from rF to r0 (from point a to point b) and raise investment spending from IF to I0 (point c to point d). We show these changes with the red arrows. The blue arrows show that as the p ...
... Starting at full employment, an increase in the supply of money from Ms0 to Ms1 will initially reduce interest rates from rF to r0 (from point a to point b) and raise investment spending from IF to I0 (point c to point d). We show these changes with the red arrows. The blue arrows show that as the p ...
Macroeconomics and the Global Economy CTY Course Syllabus
... *Money and its roles *GC – The Big Moneys *Banks and T-accounts *“Bad Bank” Activity/T-Account Practice (This American Life) *Reserve Ratio *Be a Bank’s Accountant – pg 178 IRM *Determining the money supply *The money multiplier (Chapter 14) *Central banks – The Fed *Fed 101 *Open*market operations ...
... *Money and its roles *GC – The Big Moneys *Banks and T-accounts *“Bad Bank” Activity/T-Account Practice (This American Life) *Reserve Ratio *Be a Bank’s Accountant – pg 178 IRM *Determining the money supply *The money multiplier (Chapter 14) *Central banks – The Fed *Fed 101 *Open*market operations ...
Ch. 14 Inflation Ppt.
... workers in powerful bargaining positions, and those who borrowed money are the ...
... workers in powerful bargaining positions, and those who borrowed money are the ...
US: thinking about the next US recession - 1
... which takes into account a range of economic data, instead of a mechanical rule that only looks at GDP growth. With the average post WWII expansion lasting 58.4 months it could be argued that the next recession is long overdue. However, recessions do not occur because of the passing of time, but bec ...
... which takes into account a range of economic data, instead of a mechanical rule that only looks at GDP growth. With the average post WWII expansion lasting 58.4 months it could be argued that the next recession is long overdue. However, recessions do not occur because of the passing of time, but bec ...
Wednesday, July 26, 2006 - Westlake Porter Public Library
... The first Obama federal budget also points clearly to more government regulation and involvement in the economy, in health, education and the environment. Beyond the financial sector, the bailout of U.S. auto producers led to considerable government control of that industry, almost day-to-day manag ...
... The first Obama federal budget also points clearly to more government regulation and involvement in the economy, in health, education and the environment. Beyond the financial sector, the bailout of U.S. auto producers led to considerable government control of that industry, almost day-to-day manag ...
O`Sullivan, Sheffrin, Perez: Economics: Principles, Applications, and
... APPLYING THE CONCEPTS #4: Why did labor productivity in the United States fall sharply during the 1970s and 1980s? ...
... APPLYING THE CONCEPTS #4: Why did labor productivity in the United States fall sharply during the 1970s and 1980s? ...
Answers to Homework #5
... Over time wages and prices will fall since the economy is operating at a production level smaller than Yfe. As nominal wages decrease this will cause the SRAS to shift to the right from SRAS1 to SRAS2. Eventually the economy will return to Yfe but with a lower aggregate price level than the initial ...
... Over time wages and prices will fall since the economy is operating at a production level smaller than Yfe. As nominal wages decrease this will cause the SRAS to shift to the right from SRAS1 to SRAS2. Eventually the economy will return to Yfe but with a lower aggregate price level than the initial ...
The Lucas Critique – is it really relevant?
... Trying to overcome the fallacies of the macro econometric policy evaluations of the 1970s, Lucas suggested that certain changes in the performance of macroeconomics were needed. Models should be explicit and complete, as all-important variables should be determined endogenously within the model rath ...
... Trying to overcome the fallacies of the macro econometric policy evaluations of the 1970s, Lucas suggested that certain changes in the performance of macroeconomics were needed. Models should be explicit and complete, as all-important variables should be determined endogenously within the model rath ...
Study Questions. More sample multiple choice
... 5) e. natural resources (land), tools (or capital) and labor are all factors of the production of national income. The inflation rate is not a theorized factor of production. Inflation is not a resource used to make things (did Tom Hanks need inflation to make stuff on his island?). 6) b. The produc ...
... 5) e. natural resources (land), tools (or capital) and labor are all factors of the production of national income. The inflation rate is not a theorized factor of production. Inflation is not a resource used to make things (did Tom Hanks need inflation to make stuff on his island?). 6) b. The produc ...
Fiscal Policy
... • Supply-side fiscal policies are different from policies to influence aggregate demand in that they do not always require such tradeoffs between price levels and output. • Supply-side policies require more time to work than do demand-side policies. – They aim to shift the long-run aggregate supply ...
... • Supply-side fiscal policies are different from policies to influence aggregate demand in that they do not always require such tradeoffs between price levels and output. • Supply-side policies require more time to work than do demand-side policies. – They aim to shift the long-run aggregate supply ...
B-Inflation
... • If aggregate output is below the natural rate level, advocates of activist policy would recommend that the government try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right while advocates of nonactivist policy would recommend that the government to ...
... • If aggregate output is below the natural rate level, advocates of activist policy would recommend that the government try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right while advocates of nonactivist policy would recommend that the government to ...
Document
... Leakages and Injections Total spending will equal total output if and only if - total leakages in the economy are equal to total injections. That is, only if the sum of saving and net taxes is equal to the sum of investment spending and government purchases. ...
... Leakages and Injections Total spending will equal total output if and only if - total leakages in the economy are equal to total injections. That is, only if the sum of saving and net taxes is equal to the sum of investment spending and government purchases. ...
Workshop: Environment as an economic driver
... The growth paradox: growth in GDP = growth in CO2? ...
... The growth paradox: growth in GDP = growth in CO2? ...
Opportunity Cost.
... to answer questions about how the world actually works. • Normative economics. Economic analysis that involves saying how the world should work. ...
... to answer questions about how the world actually works. • Normative economics. Economic analysis that involves saying how the world should work. ...
A Forecast assumptions
... in the first quarter of 2009 and began to rise again in the second quarter. For the coming period, a scenario of recovery and with an increasing trend was chosen. So far, lower demand has been compensated by supply restrictions due either to cuts in OPEC’s production quotas or to economic reasons am ...
... in the first quarter of 2009 and began to rise again in the second quarter. For the coming period, a scenario of recovery and with an increasing trend was chosen. So far, lower demand has been compensated by supply restrictions due either to cuts in OPEC’s production quotas or to economic reasons am ...
Inflation - Murphonomics
... Inflation is measured by using a ‘basket’ of goods and services that the average consumer would buy and looking at the changes in price. This method is known as the Consumer Price Index. However, in practice, there are many practical difficulties for measuring inflation. 1. There is no such thing as ...
... Inflation is measured by using a ‘basket’ of goods and services that the average consumer would buy and looking at the changes in price. This method is known as the Consumer Price Index. However, in practice, there are many practical difficulties for measuring inflation. 1. There is no such thing as ...
Monetary Theory I
... Are Investment Incentives Inflationary? In the late 1990s, many economists and policymakers urged consideration of tax reforms that would stimulate business investment, such as expensing—writing off new plant and equipment purchases at once instead of gradually—and reducing the cost of capital thro ...
... Are Investment Incentives Inflationary? In the late 1990s, many economists and policymakers urged consideration of tax reforms that would stimulate business investment, such as expensing—writing off new plant and equipment purchases at once instead of gradually—and reducing the cost of capital thro ...