Document
... is to predict when a particular policy will take hold and what the state of the economy will be at the time To advocates of passive policy, these lags are reason enough to avoid active discretionary policy which simply introduces more instability into the ...
... is to predict when a particular policy will take hold and what the state of the economy will be at the time To advocates of passive policy, these lags are reason enough to avoid active discretionary policy which simply introduces more instability into the ...
The Macro
... export prices appear to fall Importers – have to give up more $ to get same amount of foreign currency – appears import prices have risen Precise effect of both depends on Price Elasticity of demand for imports and exports ...
... export prices appear to fall Importers – have to give up more $ to get same amount of foreign currency – appears import prices have risen Precise effect of both depends on Price Elasticity of demand for imports and exports ...
Midterm 2
... determine what may have caused the growth slowdown in the United States from 3.7 percent per year in 1948-1973 to 1.55 percent per year from 1973-1982. (A similar slowdown occurred in most other developed countries at the same time.) ...
... determine what may have caused the growth slowdown in the United States from 3.7 percent per year in 1948-1973 to 1.55 percent per year from 1973-1982. (A similar slowdown occurred in most other developed countries at the same time.) ...
ECON 1A – Macroeconomics Lecture Notes: Chapter 11
... •Discretionary fiscal policy to close a contractionary gap: –Suppose the economy is producing: –Output falls short of the natural rate, –Unemployment exceeds –History suggests that wages and resource prices are slow to adjust, so policy makers decide to increase AD just enough to return the economy ...
... •Discretionary fiscal policy to close a contractionary gap: –Suppose the economy is producing: –Output falls short of the natural rate, –Unemployment exceeds –History suggests that wages and resource prices are slow to adjust, so policy makers decide to increase AD just enough to return the economy ...
Course Student Name
... multiplier analysis predict for the effect of government spending on real GDP? The marginal propensity to spend in this module is 0.89 (MPC I = 0.9, MP Import = -0.01) so the multiplier is 1/0.11, about 9.09 This predicts a rise of GDP (with government spending up 20) of over 180. Why was the predic ...
... multiplier analysis predict for the effect of government spending on real GDP? The marginal propensity to spend in this module is 0.89 (MPC I = 0.9, MP Import = -0.01) so the multiplier is 1/0.11, about 9.09 This predicts a rise of GDP (with government spending up 20) of over 180. Why was the predic ...
CHAPTER 15
... 2. The main argument for Fed independence is that monetary policy is too important to be determined by politicians. Because elections occur frequently, politicians may be mainly concerned with the short-run benefits rather than the long-run costs of their economic policies. Supporters of the Fed’s i ...
... 2. The main argument for Fed independence is that monetary policy is too important to be determined by politicians. Because elections occur frequently, politicians may be mainly concerned with the short-run benefits rather than the long-run costs of their economic policies. Supporters of the Fed’s i ...
Document
... Recap of classical macro theory Output is determined by the supply side: supplies of capital, labor technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. ...
... Recap of classical macro theory Output is determined by the supply side: supplies of capital, labor technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. ...
GDP
... Business Cycles in American History The Great Depression Before the 1930s, many economists believed that when an economy declined, it would recover quickly on its own. The Great Depression changed this belief. Not until World War II, more than a decade later, did the economy achieve full reco ...
... Business Cycles in American History The Great Depression Before the 1930s, many economists believed that when an economy declined, it would recover quickly on its own. The Great Depression changed this belief. Not until World War II, more than a decade later, did the economy achieve full reco ...
Economic growth 2008-2013 Initial conditions
... especially on fiscal and structural front. Giving up further reforms or even worse going back on fiscal and structural change, would unavoidably create another wave of crisis, with related political upheavals. This is a specially case of large countries. On the other hand persisting with the reforms ...
... especially on fiscal and structural front. Giving up further reforms or even worse going back on fiscal and structural change, would unavoidably create another wave of crisis, with related political upheavals. This is a specially case of large countries. On the other hand persisting with the reforms ...
Economic Growth - Leon County Schools
... Natural Resources, (2) Human Capital, (3)Supply (stock) of capital goods, (4) Improved Technology These supply factors enable a economy to physically expand its potential GDP which will cause a shift of the PPF or LRAS. Demand-side Determinant: Households, firms and the government must purchase the ...
... Natural Resources, (2) Human Capital, (3)Supply (stock) of capital goods, (4) Improved Technology These supply factors enable a economy to physically expand its potential GDP which will cause a shift of the PPF or LRAS. Demand-side Determinant: Households, firms and the government must purchase the ...
Short-Run and Long-Run Aggregate Supply
... • Eventually they need to reduce employment of workers, and so the demand curve for labor shifts inward. • Employers are somewhat reluctant to immediately lower nominal wages because they will lose employees. • Some employees have already signed contracts at a higher wage so those wages are fixed fo ...
... • Eventually they need to reduce employment of workers, and so the demand curve for labor shifts inward. • Employers are somewhat reluctant to immediately lower nominal wages because they will lose employees. • Some employees have already signed contracts at a higher wage so those wages are fixed fo ...
Macro1 Exercise #4
... What is the new long run unemployment rate after this action? __________. Does it appear that the recession has ended? __________. What is the major drawback to the successful reduction of the long run unemployment rate? _______________________________________________. Click “See Graph” and draw the ...
... What is the new long run unemployment rate after this action? __________. Does it appear that the recession has ended? __________. What is the major drawback to the successful reduction of the long run unemployment rate? _______________________________________________. Click “See Graph” and draw the ...
economics
... economic behavior of aggregates-income, employment, output, and so on-on a national scale Great The period of severe economic contraction and Depression high unemployment that began in 1929 and continued throughout the 1930s fine-tuning The phrase used by Walter Heller to refer to the government's r ...
... economic behavior of aggregates-income, employment, output, and so on-on a national scale Great The period of severe economic contraction and Depression high unemployment that began in 1929 and continued throughout the 1930s fine-tuning The phrase used by Walter Heller to refer to the government's r ...
US Employment Outlook for 2014: Can the US
... Much of the employment gains during the expansion have come from larger businesses. Small businesses still seem to be in the doldrums during the recovery. The National Federation of Independent businesses, for example, reports that the index of small business confidence is still about 10 points belo ...
... Much of the employment gains during the expansion have come from larger businesses. Small businesses still seem to be in the doldrums during the recovery. The National Federation of Independent businesses, for example, reports that the index of small business confidence is still about 10 points belo ...
Chapter 1 - McGraw
... • Monetarists believed the cause of the Great Depression was a contractionary monetary policy when an expansionary monetary policy was needed. • Monetarists gained influence as a result of the Great Inflation of the 1970s that was caused by the oil shocks. Keynesian policies were not helpful in econ ...
... • Monetarists believed the cause of the Great Depression was a contractionary monetary policy when an expansionary monetary policy was needed. • Monetarists gained influence as a result of the Great Inflation of the 1970s that was caused by the oil shocks. Keynesian policies were not helpful in econ ...
Chapter19 - Web.UVic.ca
... b) Potential GDP is the level of output produced when all factors of production are being used at their normal rates. Output can exceed potential when labour works overtime or when capital and land are used more intensively than normal. c) A recessionary output gap only requires Y to be below Y*. It ...
... b) Potential GDP is the level of output produced when all factors of production are being used at their normal rates. Output can exceed potential when labour works overtime or when capital and land are used more intensively than normal. c) A recessionary output gap only requires Y to be below Y*. It ...
price inflation and gdp growth-what matters most
... both begin series of economic reform process in the same period of time (early 1990’s) while passing through high inflation rates. This paper analyses the Indian distinguished high economic growth rates while having higher inflation rates in comparison with Egypt in the period 20002010. The paper co ...
... both begin series of economic reform process in the same period of time (early 1990’s) while passing through high inflation rates. This paper analyses the Indian distinguished high economic growth rates while having higher inflation rates in comparison with Egypt in the period 20002010. The paper co ...
GDP, Savings, and Loanable Funds
... aspects of fiscal policy and monetary policy, both of which are important in macroeconomics. In many Macro texts (including Krugman), we begin with a basic study of microeconomics and t hen transition to macro. We do this because the mainstream view is that good macroeconomics should have micro foun ...
... aspects of fiscal policy and monetary policy, both of which are important in macroeconomics. In many Macro texts (including Krugman), we begin with a basic study of microeconomics and t hen transition to macro. We do this because the mainstream view is that good macroeconomics should have micro foun ...
Textbook
... Graph and explain the demand for money Graph and explain the supply of money Explain the equilibrium interest rate using the Money Market graph Graph and explain the loanable funds market Explain the equilibrium interest rate in the Loanable Funds Market Differentiate between the Money M ...
... Graph and explain the demand for money Graph and explain the supply of money Explain the equilibrium interest rate using the Money Market graph Graph and explain the loanable funds market Explain the equilibrium interest rate in the Loanable Funds Market Differentiate between the Money M ...