Recitation Material - Matthew H. Shapiro
... 8. (2 pts) Expansionary Fiscal Policy: An increase in government purchases or a decrease in taxes (or some combination of the two) for the purpose of increasing aggregate demand. 9. (2.5 RP) Economic investment: Payments for new additions to the nation's capital stock, whether public (new roads and ...
... 8. (2 pts) Expansionary Fiscal Policy: An increase in government purchases or a decrease in taxes (or some combination of the two) for the purpose of increasing aggregate demand. 9. (2.5 RP) Economic investment: Payments for new additions to the nation's capital stock, whether public (new roads and ...
siete pasos - Human Dignity and Humiliation Studies
... religions, and in indigenous knowledge systems around the world. As articulated by Mahatma Gandhi the principle is that those of us who have more than we need are trustees of our surplus for the benefit of those who have ...
... religions, and in indigenous knowledge systems around the world. As articulated by Mahatma Gandhi the principle is that those of us who have more than we need are trustees of our surplus for the benefit of those who have ...
13 Overall economic Activity
... The supply of money in the economy is £5 and we assume that all the money will be used to buy good and services Household A spends £5 and received from household B goods and services in exchange. Household B then spends £5 on goods sold by household C and the process is repeated ...
... The supply of money in the economy is £5 and we assume that all the money will be used to buy good and services Household A spends £5 and received from household B goods and services in exchange. Household B then spends £5 on goods sold by household C and the process is repeated ...
Bank ownership and stability: Evidence from Germany
... The good news is probably that six months ago there was a risk of a near depression, but we have seen very aggressive actions by US policymakers, and around the world. I think the policymakers finally looked into the abyss: they saw that the economy was contracting at a rate of 6 percent–plus in th ...
... The good news is probably that six months ago there was a risk of a near depression, but we have seen very aggressive actions by US policymakers, and around the world. I think the policymakers finally looked into the abyss: they saw that the economy was contracting at a rate of 6 percent–plus in th ...
![Introduction [to The Economics of the Great Depression]](http://s1.studyres.com/store/data/005075362_1-9eb12c57a247abe9fdb25f70efbd0ae2-300x300.png)
Keynes and the Classical theory
... Keynes and the Classical theory Money and financial Markets • According to the classical model, increase in the money supply will increase aggregate demand for goods and services directly. ...
... Keynes and the Classical theory Money and financial Markets • According to the classical model, increase in the money supply will increase aggregate demand for goods and services directly. ...
ABOUT THE EXAM Multiple Choice Questions—two thirds of total
... P R O D U C T I O N P O S S I B I L I T I E S - A shift to the right ofthe production possibilities curve is equivalent to a rightward shift of the LRAS curve. In other words, potential GDP (output) has increased, or the productive capacity of the economy has increased. This could be achieved throug ...
... P R O D U C T I O N P O S S I B I L I T I E S - A shift to the right ofthe production possibilities curve is equivalent to a rightward shift of the LRAS curve. In other words, potential GDP (output) has increased, or the productive capacity of the economy has increased. This could be achieved throug ...
Slides
... to the inflation rate in setting the interest rate, raising interest rates in response to increasing inflation, cutting interest rates • A benefit of this approach is not only stable inflation and inflation expectations, but also more stability of output and shorter duration business cycles in the f ...
... to the inflation rate in setting the interest rate, raising interest rates in response to increasing inflation, cutting interest rates • A benefit of this approach is not only stable inflation and inflation expectations, but also more stability of output and shorter duration business cycles in the f ...
The Spending Multiplier
... Discretionary policies are sometimes delayed due to the “three times lag” Three times lag o - the amount of time it takes policy makers to realize that a policy is needed o - the amount of time needed to formulate and implement an appropriate policy o - the amount of time between a policy’s impl ...
... Discretionary policies are sometimes delayed due to the “three times lag” Three times lag o - the amount of time it takes policy makers to realize that a policy is needed o - the amount of time needed to formulate and implement an appropriate policy o - the amount of time between a policy’s impl ...
Economics
... determine production and distribution in a market economy . a. Define the Law of Supply and the Law of Demand. b. Describe the role of buyers and sellers in determining market clearing price. c. Illustrate on a graph how supply and demand determine equilibrium price and quantity. d. Explain how pric ...
... determine production and distribution in a market economy . a. Define the Law of Supply and the Law of Demand. b. Describe the role of buyers and sellers in determining market clearing price. c. Illustrate on a graph how supply and demand determine equilibrium price and quantity. d. Explain how pric ...
Chapter 15
... – The problem with recessions is inadequate demand – The only hope is for the government to spend enough money to raise aggregate demand sufficiently to get people back to work • The government could print the money or borrow it • If enough (newly created money) was spent, the recession would end ...
... – The problem with recessions is inadequate demand – The only hope is for the government to spend enough money to raise aggregate demand sufficiently to get people back to work • The government could print the money or borrow it • If enough (newly created money) was spent, the recession would end ...
Exam Questions
... Which of the following is NOT one of the effects of inflation? a. Firms incur costs associated with changing their prices. b. It redistributes wealth in an arbitrary way between borrowers and lenders. c. It causes tax distortions with respect to interest income and capital gains. d. It systematicall ...
... Which of the following is NOT one of the effects of inflation? a. Firms incur costs associated with changing their prices. b. It redistributes wealth in an arbitrary way between borrowers and lenders. c. It causes tax distortions with respect to interest income and capital gains. d. It systematicall ...
Ch26 Neoclassical Perspective Multiple Choice Questions 1
... 6. Describe the affects that a decrease in aggregate demand because of a decline in consumer confidence that leads to less consumption and more saving in relation to the aggregate demand curve and the economy. A decrease in aggregate demand because of a decline in consumer confidence that leads to l ...
... 6. Describe the affects that a decrease in aggregate demand because of a decline in consumer confidence that leads to less consumption and more saving in relation to the aggregate demand curve and the economy. A decrease in aggregate demand because of a decline in consumer confidence that leads to l ...
The recovery phase: Are we there yet? Global Economy Watch February 2014
... with a weak recovery in some peripheral economies, raises the possibility of deflation taking hold. So what would be the implications of this, and what does it mean for the Eurozone’s recovery? One side-effect is consumers postponing spending as they wait for prices to come down in the future. This ...
... with a weak recovery in some peripheral economies, raises the possibility of deflation taking hold. So what would be the implications of this, and what does it mean for the Eurozone’s recovery? One side-effect is consumers postponing spending as they wait for prices to come down in the future. This ...
AD shifts left.
... 1. If car prices increase, people’s nominal wealth increases (similar to if housing prices increase), thus they will consume more and AD shifts right. 2. When recession hits, more people are eligible for food stamps; government spending increases without any explicit act of Congress. 3. MPS is the p ...
... 1. If car prices increase, people’s nominal wealth increases (similar to if housing prices increase), thus they will consume more and AD shifts right. 2. When recession hits, more people are eligible for food stamps; government spending increases without any explicit act of Congress. 3. MPS is the p ...
Lecture Slides on Web Chapter of Mishkin and Serletis (5th Cdn. ed.)
... • How can policy makers decide which policies (changing the money supply, changing government spending, or taxes) to use if faced with too much unemployment? • In practice, fiscal and monetary policies are used together in the combination known as the policy mix ...
... • How can policy makers decide which policies (changing the money supply, changing government spending, or taxes) to use if faced with too much unemployment? • In practice, fiscal and monetary policies are used together in the combination known as the policy mix ...
Chapter 15
... • “Each of the major schools of economic thought can be useful on occasion. The insights of Keynesian economics proved appropriate for Western societies attempting to get out of the depression in the 1930s. The tools of monetarism were powerfully effective in squeezing out the inflationary force of ...
... • “Each of the major schools of economic thought can be useful on occasion. The insights of Keynesian economics proved appropriate for Western societies attempting to get out of the depression in the 1930s. The tools of monetarism were powerfully effective in squeezing out the inflationary force of ...
Phillips Curve
... hold because a stable trade-off appeared to exist between unemployment and inflation. Then in 1968, in his presidential address to the American Economic Association, Milton Friedman of the University of Chicago argued that the Phillips curve did not represent a permanent trade-off between unemployme ...
... hold because a stable trade-off appeared to exist between unemployment and inflation. Then in 1968, in his presidential address to the American Economic Association, Milton Friedman of the University of Chicago argued that the Phillips curve did not represent a permanent trade-off between unemployme ...
Economic Tools and Economic Thinking
... Mr. Blair has done but went as far as creating Web sites and voice mails to support his fabrications Also, R. Foster Winans (Wall Street Journal) who in 1985 was convicted for writing false articles for the purpose of making money in the stock market ...
... Mr. Blair has done but went as far as creating Web sites and voice mails to support his fabrications Also, R. Foster Winans (Wall Street Journal) who in 1985 was convicted for writing false articles for the purpose of making money in the stock market ...
Chapter 27
... A worker gets laid off b/c his employer had to cut 3,000 jobs nationwide due to a recession. What kind of unemployment is that? (choose from a-d above) ...
... A worker gets laid off b/c his employer had to cut 3,000 jobs nationwide due to a recession. What kind of unemployment is that? (choose from a-d above) ...
Policy - QC Economics
... in such a way as to bring about continued increases in aggregate demand is the money supply. • Money Supply is the only factor that can continually increase without causing a reduction in one of the four components of total expenditures: consumption, investment, government purchases, or net exports. ...
... in such a way as to bring about continued increases in aggregate demand is the money supply. • Money Supply is the only factor that can continually increase without causing a reduction in one of the four components of total expenditures: consumption, investment, government purchases, or net exports. ...