aggregate-supply curve
... 2) A useful analogy is someone running a marathon. Think of potential output as the maximum speed that a marathoner can run without becoming “overheated” and dropping out from exhaustion. Clearly, the runner can run faster than the sustainable pace for a while, just as the U.S. economy grew faster ...
... 2) A useful analogy is someone running a marathon. Think of potential output as the maximum speed that a marathoner can run without becoming “overheated” and dropping out from exhaustion. Clearly, the runner can run faster than the sustainable pace for a while, just as the U.S. economy grew faster ...
Problem Set 7 - Shepherd Webpages
... supply, shifting the LM up. Short-run equilibrium: Y increases, i increases, P increases. b. Increase in P in short-run increases expected P (Pe), shifting AS up, which increases actual P. The increase in the actual P shifts LM up. Medium-run equilibrium: Y returns to Yn, i increases, P increases. c ...
... supply, shifting the LM up. Short-run equilibrium: Y increases, i increases, P increases. b. Increase in P in short-run increases expected P (Pe), shifting AS up, which increases actual P. The increase in the actual P shifts LM up. Medium-run equilibrium: Y returns to Yn, i increases, P increases. c ...
Milton Friedman`s economics and political economy
... that we are now all Friedmanites.” Now, in the wake of the global financial crisis of 2008 and the ensuing Great Stagnation, events are chipping away at Friedman’s standing. That has created an intellectually schizophrenic moment when events increasingly speak to the correctness of old Keynesian eco ...
... that we are now all Friedmanites.” Now, in the wake of the global financial crisis of 2008 and the ensuing Great Stagnation, events are chipping away at Friedman’s standing. That has created an intellectually schizophrenic moment when events increasingly speak to the correctness of old Keynesian eco ...
14.02 PRINCIPLES OF MACROECONOMICS QUIZ 1 READ INSTRUCTIONS FIRST:
... b. Relative to the United States, European unemployment was low in the 1960s and has exceeded the US for the last two decades. c. The United States has a more dynamic labor market than Europe, with employees more frequently moving in and out of jobs. d. Europe provides higher levels of worker protec ...
... b. Relative to the United States, European unemployment was low in the 1960s and has exceeded the US for the last two decades. c. The United States has a more dynamic labor market than Europe, with employees more frequently moving in and out of jobs. d. Europe provides higher levels of worker protec ...
Rational expectation and the Lucas critique
... This model attempts to explain the departures of actual GDP from potential GDP using the microeconomic theory of firm's supply. Price and wages are assumed to be flexible in this model. According to microeconomic theory, a firm produces up to the point where its price equals marginal cost. Marginal ...
... This model attempts to explain the departures of actual GDP from potential GDP using the microeconomic theory of firm's supply. Price and wages are assumed to be flexible in this model. According to microeconomic theory, a firm produces up to the point where its price equals marginal cost. Marginal ...
FULL EMPLOYMENT, THE VALUE OF MONEY AND DEFICIT
... identical to the exogenously determined money wage-rate in a state of perfect full employment. The money wage rate determines the value of the fundamental resource, labor. Therefore, the higher the level of the fixed base wage rate the higher is the real value of the currency. This fair wage-rate is ...
... identical to the exogenously determined money wage-rate in a state of perfect full employment. The money wage rate determines the value of the fundamental resource, labor. Therefore, the higher the level of the fixed base wage rate the higher is the real value of the currency. This fair wage-rate is ...
FRBSF E L
... Although the adverse effects of residual seasonality on monetary policy are likely to be fairly modest, they do illustrate one reason why central bankers are loath to follow any mechanical rule where the stance of monetary policy depends on only two economic variables. Any economic variable is inevi ...
... Although the adverse effects of residual seasonality on monetary policy are likely to be fairly modest, they do illustrate one reason why central bankers are loath to follow any mechanical rule where the stance of monetary policy depends on only two economic variables. Any economic variable is inevi ...
Quiz - Kleykamp in Taiwan
... There's only one country in the world where negative interest rates are working - Sweden ...
... There's only one country in the world where negative interest rates are working - Sweden ...
Reaction Function - NRI Financial Solutions
... the change from time-series analysis to cross-sectional one, it would not be easy for readers to identify the differences of their assessments from the previous case in July. Their main messages, however, are rather simple. While the MPM maintained their economic forecast, they made slight downward ...
... the change from time-series analysis to cross-sectional one, it would not be easy for readers to identify the differences of their assessments from the previous case in July. Their main messages, however, are rather simple. While the MPM maintained their economic forecast, they made slight downward ...
lecture notes
... B. Political considerations: Government has other goals besides economic stability, and these may conflict with stabilization policy. 1. A political business cycle may destabilize the economy: Election years have been characterized by more expansionary policies regardless of economic conditions. 2. ...
... B. Political considerations: Government has other goals besides economic stability, and these may conflict with stabilization policy. 1. A political business cycle may destabilize the economy: Election years have been characterized by more expansionary policies regardless of economic conditions. 2. ...
Between Change and Continuity: The International Monetary Fund and Economic Crises
... Recent research and events show that the IMF is a more reflexive institution than its critics point out. Following the East Asian crisis IMF staff began to challenge the conventional wisdom about capital account liberalization, leading to at least a half step away from orthodoxy in the Fund’s policy ...
... Recent research and events show that the IMF is a more reflexive institution than its critics point out. Following the East Asian crisis IMF staff began to challenge the conventional wisdom about capital account liberalization, leading to at least a half step away from orthodoxy in the Fund’s policy ...
The Dynamics of Inflation and Unemployment
... on its central bank to finance its debt. Instead, debt was sold to private parties who would value the debt based on the ability of the government to meet interest and principal payments from taxes. Once the governments made these reforms, there was an abrupt end to the hyperinflations and an actual ...
... on its central bank to finance its debt. Instead, debt was sold to private parties who would value the debt based on the ability of the government to meet interest and principal payments from taxes. Once the governments made these reforms, there was an abrupt end to the hyperinflations and an actual ...
(PDF, Unknown)
... We can now use these equations to explore some of the ways in which the reduction of debt can occur and with what consequences in each case. The most obvious way debt reduction by households and corporations might occur is through an increase in saving (S). However, equation (4) indicates that this ...
... We can now use these equations to explore some of the ways in which the reduction of debt can occur and with what consequences in each case. The most obvious way debt reduction by households and corporations might occur is through an increase in saving (S). However, equation (4) indicates that this ...
HW2-sol
... Note that the formula drops the "billions" (109) terms because they simply cancel in the numerator and the denominator. (It's fine if you kept the billions in your numbers.) The 1/51 exponent reflects the fact that the growth compounded for 51 years. You want to find the average annual growth rate t ...
... Note that the formula drops the "billions" (109) terms because they simply cancel in the numerator and the denominator. (It's fine if you kept the billions in your numbers.) The 1/51 exponent reflects the fact that the growth compounded for 51 years. You want to find the average annual growth rate t ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Import Competition and Response
... We begin with the case in whichp; andpg both drop, leaving the relative price ratio IT* unaffected. The advantage of considering this case first is that such a change does not alter the general equilibrium curves in figure 2.2!2At given pricePo and nominal wage level wjthe effect of a fall inpg is t ...
... We begin with the case in whichp; andpg both drop, leaving the relative price ratio IT* unaffected. The advantage of considering this case first is that such a change does not alter the general equilibrium curves in figure 2.2!2At given pricePo and nominal wage level wjthe effect of a fall inpg is t ...
solutions - Department of Economics
... commercial banks paid to the Bank of Canada when they borrow money from the Bank). When the system works normally, a reduction in the bank rate is rapidly transferred to the public through a reduction in commercial rates. Not this time – the Bank lowered the bank rate twice but commercial rates decr ...
... commercial banks paid to the Bank of Canada when they borrow money from the Bank). When the system works normally, a reduction in the bank rate is rapidly transferred to the public through a reduction in commercial rates. Not this time – the Bank lowered the bank rate twice but commercial rates decr ...
The velocity of money is: The same as the inflation rate. The number
... 7. A difference between Keynesian and Friedman money demand relationships is: a. Friedman money demand implies velocity is unpredictable but Keynesian money demand considers velocity stable. b. Keynesian money demand depends on asset demand but asset demand has little role in Friedman money demand. ...
... 7. A difference between Keynesian and Friedman money demand relationships is: a. Friedman money demand implies velocity is unpredictable but Keynesian money demand considers velocity stable. b. Keynesian money demand depends on asset demand but asset demand has little role in Friedman money demand. ...
April 2010 by Alexander J. Field
... the downturn have been felt. As a consequence of the recession, TFP advance is likely to be weak or even negative, as it was between 1929 and 1933. We won’t have much real evidence on the longer run trajectory of TFP for some time, since trend growth can only reliably be measured between business c ...
... the downturn have been felt. As a consequence of the recession, TFP advance is likely to be weak or even negative, as it was between 1929 and 1933. We won’t have much real evidence on the longer run trajectory of TFP for some time, since trend growth can only reliably be measured between business c ...
Five Interwoven Economies: * Subsistence, * Gift, * Exchange
... * Decision makers (people, thermostats, computers, robots, bureaucracies) * Models that decision makers use to make sense of the world or influence each other (like supply-side economics, natural capitalism, theories about human motivation, etc.) Mainstream economists often confuse their elegant eco ...
... * Decision makers (people, thermostats, computers, robots, bureaucracies) * Models that decision makers use to make sense of the world or influence each other (like supply-side economics, natural capitalism, theories about human motivation, etc.) Mainstream economists often confuse their elegant eco ...
IV. Globalization and The Efficiency of Equilibrium
... marginal productivity. Equilibrium wage is given by B, with the worker’s real wage marked down below her marginal product by the distance AB. Full employment obtains because workers are offered a wage according to their supply schedule. This is why the aggregate supply curve will be stated in terms ...
... marginal productivity. Equilibrium wage is given by B, with the worker’s real wage marked down below her marginal product by the distance AB. Full employment obtains because workers are offered a wage according to their supply schedule. This is why the aggregate supply curve will be stated in terms ...