unemployed?
... When an economy is at equilibrium, there is no justification for producers to increase investment spending -even if it would reduce unemployment. ...
... When an economy is at equilibrium, there is no justification for producers to increase investment spending -even if it would reduce unemployment. ...
B.A. (HONOURS) ECONOMICS COURSE CONTENTS (Effective from the Academic Year 2011-2012 onwards)
... The existing criteria for opting for the Concurrent /Credit Courses shall also remain unchanged. ...
... The existing criteria for opting for the Concurrent /Credit Courses shall also remain unchanged. ...
note C
... “short run” was shorter than believed by Keynesians. Of lasting influence was Friedman’s emphatic claim that while there is usually a short-run trade-off between inflation and unemployment, there is no long-run trade-off.1 The reason is the endogeneity of inflation expectations − in the long run it is ...
... “short run” was shorter than believed by Keynesians. Of lasting influence was Friedman’s emphatic claim that while there is usually a short-run trade-off between inflation and unemployment, there is no long-run trade-off.1 The reason is the endogeneity of inflation expectations − in the long run it is ...
Stabilization Policy, Output, and Employment
... Beginning with pt A we illustrate the hypothetical business cycle. If a forthcoming recession can be recognized quickly and more expansionary policy instituted at pt B . . . expansionary policy may add stimulus at pt C and help minimize the magnitude of the downturn. Activists believe that discretio ...
... Beginning with pt A we illustrate the hypothetical business cycle. If a forthcoming recession can be recognized quickly and more expansionary policy instituted at pt B . . . expansionary policy may add stimulus at pt C and help minimize the magnitude of the downturn. Activists believe that discretio ...
Demand Side Fiscal Policy
... Second part of first question: explain reasons for changes in the distribution of government expenditure, e.g. changing economic circumstances, brought about by changing domestic or international conditions, which in addition to changing the level of spending, may cause governments to have to re- ...
... Second part of first question: explain reasons for changes in the distribution of government expenditure, e.g. changing economic circumstances, brought about by changing domestic or international conditions, which in addition to changing the level of spending, may cause governments to have to re- ...
Chapter 1: What Does Economics Study?
... rates in order to stimulate economic activity. For instance, if the government causes interest rates to fall, consumers borrow more money to buy things like houses and cars, thereby stimulating economic activity and helping to get the economy moving faster. Fiscal policy refers to using increased ...
... rates in order to stimulate economic activity. For instance, if the government causes interest rates to fall, consumers borrow more money to buy things like houses and cars, thereby stimulating economic activity and helping to get the economy moving faster. Fiscal policy refers to using increased ...
Unit 3: Aggregate Demand and Supply and Fiscal Policy
... of money • This decreases the quantity of expenditures • Lower price levels increase purchasing power and increase expenditures Example: • If the balance in your bank was $50,000, but inflation erodes your purchasing power, you will likely reduce your spending. • So…Price Level goes up, GDP demanded ...
... of money • This decreases the quantity of expenditures • Lower price levels increase purchasing power and increase expenditures Example: • If the balance in your bank was $50,000, but inflation erodes your purchasing power, you will likely reduce your spending. • So…Price Level goes up, GDP demanded ...
International Labour Review, Vol
... supply. It is worth noting that between 1990 and 2008 there was an annual increase of 1.6 per cent in the population and of 2.6 per cent in the labour force. The resulting sharp decline in the number of dependants per person in employment and the number of members per household improved the dependen ...
... supply. It is worth noting that between 1990 and 2008 there was an annual increase of 1.6 per cent in the population and of 2.6 per cent in the labour force. The resulting sharp decline in the number of dependants per person in employment and the number of members per household improved the dependen ...
Chapter 9
... 5. New growth theory: Emphasizes how rewards to innovation contribute to higher growth rates 6. Fundamental factors that contribute to a nation’s economic development: Nations that encourage education, have a strong system of property rights, allow creative destruction, and avoid protectionism have ...
... 5. New growth theory: Emphasizes how rewards to innovation contribute to higher growth rates 6. Fundamental factors that contribute to a nation’s economic development: Nations that encourage education, have a strong system of property rights, allow creative destruction, and avoid protectionism have ...
The market economy: theory, ideology and reality
... salt, dried chillies and molasses. What was done to secure these was to take some of its own produce, a bunch of raw bananas or some eggs, to a location about a mile away on a Wednesday or Saturday and where on those days the required goods would be available. Seldom was there direct barter. The act ...
... salt, dried chillies and molasses. What was done to secure these was to take some of its own produce, a bunch of raw bananas or some eggs, to a location about a mile away on a Wednesday or Saturday and where on those days the required goods would be available. Seldom was there direct barter. The act ...
NBER WORKING PAPER SERIES WHAT DO WE KNOW ABOUT MACROECONOMICS THAT
... graduate textbooks. See for example Blanchard and Fischer [1989], or Obstfeld and Rogoff ...
... graduate textbooks. See for example Blanchard and Fischer [1989], or Obstfeld and Rogoff ...
CHAPTER 1
... important role in determining our standard of living. For instance, microeconomics studies factors that determine people's wages. In addition, it examines under what conditions firms will produce their output as efficiently as possible, which also an important topic. 4. People specialize because it ...
... important role in determining our standard of living. For instance, microeconomics studies factors that determine people's wages. In addition, it examines under what conditions firms will produce their output as efficiently as possible, which also an important topic. 4. People specialize because it ...
QUIZ 2: Macro – Winter 2002
... A permanent increase in labor income taxes will shift the long run aggregate supply curve __________. a. definitely to the right b. definitely to the left c. either to the right or to the left depending on the strength of the income relative to the substitution effect d. it will not shift the curve ...
... A permanent increase in labor income taxes will shift the long run aggregate supply curve __________. a. definitely to the right b. definitely to the left c. either to the right or to the left depending on the strength of the income relative to the substitution effect d. it will not shift the curve ...
Gross Domestic Product (GDP)
... Nominal GDP is ok short term, but prices generally increase over time right? What’s that called? Inflation! Nominal GDP calculations year after year do not give a realistic picture of our countries output in real dollars, because the value of our dollar changes every year OK for 1 year calculations, ...
... Nominal GDP is ok short term, but prices generally increase over time right? What’s that called? Inflation! Nominal GDP calculations year after year do not give a realistic picture of our countries output in real dollars, because the value of our dollar changes every year OK for 1 year calculations, ...
Market Review and Outlook
... Saudi Macro and Equity Market Saudi Challenges Despite the fact that the Saudi economy has been resilient to the financial crisis and was able to withstand external shock with sound macroeconomic fundamentals, the Kingdom has its own challenges to overcome in line with its robust economy. One of the ...
... Saudi Macro and Equity Market Saudi Challenges Despite the fact that the Saudi economy has been resilient to the financial crisis and was able to withstand external shock with sound macroeconomic fundamentals, the Kingdom has its own challenges to overcome in line with its robust economy. One of the ...
chapter 28 - W.W. Norton
... light on two theoretical concepts of fundamental importance: the income and substitution effects. Nevertheless, despite its strengths, the approach suffers from several weaknesses. From the perspective of this chapter, an especially pressing one is that it is static in nature: individuals maximize t ...
... light on two theoretical concepts of fundamental importance: the income and substitution effects. Nevertheless, despite its strengths, the approach suffers from several weaknesses. From the perspective of this chapter, an especially pressing one is that it is static in nature: individuals maximize t ...
What Is an Economy?
... Describe the effect of high unemployment on a nation’s economy. High unemployment has a negative effect on a nation’s economy. The unemployed cannot make purchases so companies produce less and cut back on capital projects. Tax revenue decreases. Unemployment benefits cause state governments to redu ...
... Describe the effect of high unemployment on a nation’s economy. High unemployment has a negative effect on a nation’s economy. The unemployed cannot make purchases so companies produce less and cut back on capital projects. Tax revenue decreases. Unemployment benefits cause state governments to redu ...
Did the New Deal Prolong or Worsen the Great Depression?
... levels. Cole and Ohanian (2004: 781) find that “cartelization policies” account for about 60 percent of the gap between actual and potential GDP. Models broadly similar to Cole and Ohanian’s are now the norm in mainstream academic macroeconomics and they have shortcomings, but a detailed analysis is ...
... levels. Cole and Ohanian (2004: 781) find that “cartelization policies” account for about 60 percent of the gap between actual and potential GDP. Models broadly similar to Cole and Ohanian’s are now the norm in mainstream academic macroeconomics and they have shortcomings, but a detailed analysis is ...
Lecture 5 and 6
... We have seen that the development of a region—in terms of its size, income level, and structure—is affected by external conditions of two types: (1) demand for the region’s outputs, or more broadly, external sources of income for the region, and (2) supply of inputs to the region’s productive activi ...
... We have seen that the development of a region—in terms of its size, income level, and structure—is affected by external conditions of two types: (1) demand for the region’s outputs, or more broadly, external sources of income for the region, and (2) supply of inputs to the region’s productive activi ...