Short- and long-run aspects of fiscal policy in a deep recession1
... Only if the current fiscal policy, ( ) implies a non-exploding debt-income ratio, is the policy sustainable. As an implication of this requires that and are such that ∗ ≥ 0 That is, the requirement is that ...
... Only if the current fiscal policy, ( ) implies a non-exploding debt-income ratio, is the policy sustainable. As an implication of this requires that and are such that ∗ ≥ 0 That is, the requirement is that ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... greatly reduced, releasing highly skilled work from “unproductive” jobs. According to traditional international trade theory it is expected that, once negative effective rates of protection and overvalued exchange rates are eliminated, exports will not only grow rapidly but will also become more div ...
... greatly reduced, releasing highly skilled work from “unproductive” jobs. According to traditional international trade theory it is expected that, once negative effective rates of protection and overvalued exchange rates are eliminated, exports will not only grow rapidly but will also become more div ...
Karl Marx and Stephen Jay Gould: Institutions and punctuated
... have elaborated a conception of subsumed classes, groups characterized by the supply of one of the conditions of the capitalist class process. This includes political and ideological ...
... have elaborated a conception of subsumed classes, groups characterized by the supply of one of the conditions of the capitalist class process. This includes political and ideological ...
long-run aggregate supply curve. - IB-Econ
... spending (C, I, Xn), a government must fill the "recessionary gap" by increasing government spending. The economy will NOT "self-‐correct" due to "s'cky wages and prices", meaning there should be an ac've ...
... spending (C, I, Xn), a government must fill the "recessionary gap" by increasing government spending. The economy will NOT "self-‐correct" due to "s'cky wages and prices", meaning there should be an ac've ...
CONSEQUENCES OF THE GLOBAL ECONOMIC CRISIS ON THE CZECH ECONOMY
... contemporary economic crisis but also in previous years. Fig. 4 shows that the construction has not yet been affected by the global economic recession in such intensity such as manufacturing (in other countries such as Ireland and Lithuania the annual decline amounted up to 45 percent). The share of ...
... contemporary economic crisis but also in previous years. Fig. 4 shows that the construction has not yet been affected by the global economic recession in such intensity such as manufacturing (in other countries such as Ireland and Lithuania the annual decline amounted up to 45 percent). The share of ...
Chapter 6 Check Your Understanding
... 2b) If you believed the economy was self-regulating, then you would advocate decreasing taxes in response to the slump. ...
... 2b) If you believed the economy was self-regulating, then you would advocate decreasing taxes in response to the slump. ...
Econ 309 Lecture Jul10
... morality. Yet it seems to have a rather clear meaning in the business context. It consists of acting honestly even when the opposite may be to one’s advantage. Such morality is essential for all trustee relationships. Without it, costs of supervision and control become exorbitant.” (p. 50) ...
... morality. Yet it seems to have a rather clear meaning in the business context. It consists of acting honestly even when the opposite may be to one’s advantage. Such morality is essential for all trustee relationships. Without it, costs of supervision and control become exorbitant.” (p. 50) ...
Macro Chapter 10 study guide questions
... b. the price level to fall. c. unemployment to increase. d. all of the above. ____ 15. Which of the following is most likely to accompany a fully anticipated reduction in short-run aggregate supply? a. an increase in the price level b. a decrease in the price level c. a decrease in real GDP d. both ...
... b. the price level to fall. c. unemployment to increase. d. all of the above. ____ 15. Which of the following is most likely to accompany a fully anticipated reduction in short-run aggregate supply? a. an increase in the price level b. a decrease in the price level c. a decrease in real GDP d. both ...
The Economic Consequences of Low Interest Rates
... around levels very close to the rate on the deposit facility over the past four years. It currently stands below 10 basis points. At the same time, returns on long-term safe assets have never been so low since the creation of Economic and Monetary Union. For example, ten-year German government bonds ...
... around levels very close to the rate on the deposit facility over the past four years. It currently stands below 10 basis points. At the same time, returns on long-term safe assets have never been so low since the creation of Economic and Monetary Union. For example, ten-year German government bonds ...
The demise of neoliberalism? Bill Lucarelli
... the equity booms of the 1980s and 1990s and ultimately to the massive over-valuation of market capitalisation spurred by booming equity prices and sustained by unprecedented leveraging operations. This whole process supported and accentuated the stock market boom of the 1990s and generated the illus ...
... the equity booms of the 1980s and 1990s and ultimately to the massive over-valuation of market capitalisation spurred by booming equity prices and sustained by unprecedented leveraging operations. This whole process supported and accentuated the stock market boom of the 1990s and generated the illus ...
Economics - Model High School
... SSEMI1The student will describe how households, businesses and governments are interdependent and interact through flows of goods, services and money. a. Illustrate by means of a circular flow diagram, the Product market, the Resource (factor) Market, the real flow of goods and services between and ...
... SSEMI1The student will describe how households, businesses and governments are interdependent and interact through flows of goods, services and money. a. Illustrate by means of a circular flow diagram, the Product market, the Resource (factor) Market, the real flow of goods and services between and ...
‘The Empirical Implications of the Interest-Rate Lower Bound’ Gust, Lopez-Salido and Smith Discussion
... Productivity shocks played relatively larger role in slow output growth from 2009 on. Large, persistent fall in discount rate was relatively more important in explaining in‡ation, nominal interest rates. ...
... Productivity shocks played relatively larger role in slow output growth from 2009 on. Large, persistent fall in discount rate was relatively more important in explaining in‡ation, nominal interest rates. ...
Economics
... Candidates will be able to understand how market forces of demand and supply interact to bring about market equilibrium. Candidates will also examine the strategies of firms to achieve their objectives. In addition, candidates will be able to understand that while decisions made by consumers and pro ...
... Candidates will be able to understand how market forces of demand and supply interact to bring about market equilibrium. Candidates will also examine the strategies of firms to achieve their objectives. In addition, candidates will be able to understand that while decisions made by consumers and pro ...
Report - The Heritage Foundation
... below what economists expected before or during the Great Recession. GDP directly measures output, but it tracks national income so closely that the two are often interchanged.1 Previous experience taught that after a recession or depression, GDP tends to bounce back to its previous trend. After the ...
... below what economists expected before or during the Great Recession. GDP directly measures output, but it tracks national income so closely that the two are often interchanged.1 Previous experience taught that after a recession or depression, GDP tends to bounce back to its previous trend. After the ...
Chapter 9 - University of Alberta
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
doc conf
... a. Explain why the budget deficit function is downward sloping. b. If the government increases its level of purchases (G), what happens to the budget deficit at any level of real GDP? Show this in the diagram. c. If the government increases its level of net tax revenues (T), what happens to the defi ...
... a. Explain why the budget deficit function is downward sloping. b. If the government increases its level of purchases (G), what happens to the budget deficit at any level of real GDP? Show this in the diagram. c. If the government increases its level of net tax revenues (T), what happens to the defi ...
View/Open
... buy government bonds. Recently, long-term government bonds have been hard to sell because other types of investments yield higher returns. When the government has difficulty selling long-term bonds to individuals, it is forced to borrow from banks, thus creating deposits for the Treasury. This incre ...
... buy government bonds. Recently, long-term government bonds have been hard to sell because other types of investments yield higher returns. When the government has difficulty selling long-term bonds to individuals, it is forced to borrow from banks, thus creating deposits for the Treasury. This incre ...
Chapter 9 - University of Alberta
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
SOUTHWESTERN MICHIGAN COLLEGE
... 43. Explain how short-run equilibrium in the economy is established. 44. Identify the factors that can change the price level, Real GDP, and the unemployment rate. 45. Explain the difference between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. 46. Ident ...
... 43. Explain how short-run equilibrium in the economy is established. 44. Identify the factors that can change the price level, Real GDP, and the unemployment rate. 45. Explain the difference between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. 46. Ident ...
Fiscal Policy - Mansoor Maitah
... will push real interest rates up and thereby retard private spending, reducing the stimulus effect of expansionary fiscal policy. • The implications of the crowding-out analysis are symmetrical. – Restrictive fiscal policy will reduce real interest rates and "crowd in" private spending. • Crowding-o ...
... will push real interest rates up and thereby retard private spending, reducing the stimulus effect of expansionary fiscal policy. • The implications of the crowding-out analysis are symmetrical. – Restrictive fiscal policy will reduce real interest rates and "crowd in" private spending. • Crowding-o ...