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The Economic Consequences of German Unification
The Economic Consequences of German Unification

... Federal Reserve cautiously avoided trying to push inflation below 2 percent. Claims that there were excessive wage hikes in Germany at this time were unjustified. The degree of wage moderation in Germany was excessive relative to depressed productivity growth, as wage disinflation merely compensate ...
The views expressed herein are those of the authors and not
The views expressed herein are those of the authors and not

The Domestic Economy - The Economic and Social Research Institute
The Domestic Economy - The Economic and Social Research Institute

The Fed`s Monetary Policy during the 1930`s: A Critical Evaluation
The Fed`s Monetary Policy during the 1930`s: A Critical Evaluation

... uncertainty driving the panic. This action was quickly followed by FDR taking the U.S. off the gold standard in April, Treasury gold ( and silver) purchases designed to raise gold prices and prices in general, and formal devaluation of the dollar by close to 60% in January 1934. These policies produ ...
PPT
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... • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they had been in over 50 years. In 2005, oil prices shot up to $60 a bar ...
Wages, employment and prices
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course developer
course developer

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... office about any excuses for missing a class or control in advance. They should also present a medical report to the program office in case of illness. Your active class participation will affect my informal evaluation of your performance, and will be a decisive factor when your grade lies on the bo ...
The natural interest rate: concept, measurement and monetary
The natural interest rate: concept, measurement and monetary

... In per cent; median and interquartile range (shaded area) of the real interest rate across 17 advanced economies, including Australia, Canada, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Norway, New Zealand, Portugal, Spain, Sweden, Switzerland, United Kingdom and the United St ...
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... another major depression. But due to rigidities which have been built into our system, the automatic stabilizers do not operate as effectively against inflation. The level of economic activity can also be influenced by discretionary fiscal policies, such as new taxes, changes in tax rates and change ...
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... and to the right, and move income back toward its original level. An alternative is to be passive and let the economy adjust on its own. Households in the economy are unhappy about the increase in the price of oil and they wish it would reverse itself. Will they be any happier if policy makers incre ...
The Stock Market Crash of 2008 Caused the Great Recession
The Stock Market Crash of 2008 Caused the Great Recession

... equilibrium in which house prices were growing explosively, to a new steady state equilibrium in which house prices are lower and unemployment higher. This new steady state can potentially be sustained for ever. The fall in the value of residential and commercial real estate triggered a secondary co ...
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Disputes over Macro Theory and Policy

... would fall along with product prices, leaving real profits and output unchanged. Consider a one-firm economy in which the firm’s owner must receive a real profit of $20 in order to produce the full-employment output of 100 units. You know from Chapter 8 that what ultimately counts is the real reward ...
I Changes in Business Cycles: Evidence and Explanations Christina D. Romer
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... The results reported in Table 1 also echo those from a study using disaggregated output data. While consistent aggregate data for the United States typically have to be derived using regression procedures, there exist numerous individual production series that have been collected in much the same wa ...
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Ch. 12: Economic Fluctuations (Handout)

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... how they affect policy decisions. In 2004, George Bush made a proposal to increase the solvency of the Social Security Trust Fund by changing the index to which social security earnings are indexed. We will analyze a simple version of this policy in this question. Setup: Consider the following simpl ...
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... a) (5 points) Given the above variables, calculate the equilibrium level of output. b) (5 points) Graphically illustrate the equilibrium level of output for this economy. c) (5 points) Now, assume that taxes increase from 600 to 700. What is the new equilibrium level of output? How much does income ...
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The Federal Reserve`s "Dual Mandate": The Evolution of an Idea
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Pushing on a string: US monetary policy is less powerful in recessions

Economics English memo - Department of Basic Education
Economics English memo - Department of Basic Education

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Mankiw 5/e Chapter 9: Intro to Economic Fluctuations

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Macroeconomic Policy and the External Sector

... disturbances, and on the set of institutions and rules that govern their behavior. These structural properties can be represented formally in terms of a set of behavioral adjustment coefficients. Provided this set is complete, it is possible to trace any shock to which the economy may be exposed thr ...
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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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