Lecture 12: The Great Depression - personal.kent.edu
... decline, reaching 14 percent by 1937. With the next recession, it rose again, and then resumed its decline. By 1941 it was down to 10% and then really began to decline during World War II Average Earnings (Series 9 and 10) We are also quite interested in what happened to wage rates. Column 9 gives t ...
... decline, reaching 14 percent by 1937. With the next recession, it rose again, and then resumed its decline. By 1941 it was down to 10% and then really began to decline during World War II Average Earnings (Series 9 and 10) We are also quite interested in what happened to wage rates. Column 9 gives t ...
14.02 Principles of Macroeconomics Problem Set 1 Solutions Spring 2003
... change in the inflation rate. In 2001 the change in inflation was strongly negative, which would lead you to expect the unemployment rate in that year was also high. [NOTE: This relationship between unemployment and inflation is called the “Phillips Curve”. The different ways economists have thought ...
... change in the inflation rate. In 2001 the change in inflation was strongly negative, which would lead you to expect the unemployment rate in that year was also high. [NOTE: This relationship between unemployment and inflation is called the “Phillips Curve”. The different ways economists have thought ...
Aadland – Spring 2015
... a recessionary gap. In the long-run, the recessionary gap causes nominal wages and other sticky prices to fall, leading producers to increase output. Graphically, the initial short-run aggregate supply curve, SRAS1, shifts rightward until it intersects with AD2 and LRAS. The economy is back in long- ...
... a recessionary gap. In the long-run, the recessionary gap causes nominal wages and other sticky prices to fall, leading producers to increase output. Graphically, the initial short-run aggregate supply curve, SRAS1, shifts rightward until it intersects with AD2 and LRAS. The economy is back in long- ...
Interest rate effect.
... Higher price level decreases purchasing power of money you have on hand. You need more money to buy g/s. Increase in demand for money pushes interest rates up. S Nominal interest rate = real interest rate + expected inflation. S If inflation increases, so should the nominal interest rate. S Higher i ...
... Higher price level decreases purchasing power of money you have on hand. You need more money to buy g/s. Increase in demand for money pushes interest rates up. S Nominal interest rate = real interest rate + expected inflation. S If inflation increases, so should the nominal interest rate. S Higher i ...
Group Activity - Seattle Central College
... When Intel invents a new and more powerful computer chip, productivity increases, so long-run aggregate supply increases as more output can be produced with the same inputs. ...
... When Intel invents a new and more powerful computer chip, productivity increases, so long-run aggregate supply increases as more output can be produced with the same inputs. ...
Name: Emma Lant Candidate Number: 1103854 Module: EC330
... in 2000-2001, investment and growth continued to thrive. Recovery would have been short-lived if solely reliant on the ephemeral level of the exchange rate and world commodity prices. Government policies helped to enable the recovery’s emergence and sustainability and this is substantiated by compar ...
... in 2000-2001, investment and growth continued to thrive. Recovery would have been short-lived if solely reliant on the ephemeral level of the exchange rate and world commodity prices. Government policies helped to enable the recovery’s emergence and sustainability and this is substantiated by compar ...
Circular flow
... goods and services supplied by a sector is supposed to equal the total of the goods and services received by it. In the matrix this means that the total of each row of the square matrix must equal the corresponding column total (i.e. Yb c= Vb"~ etc.). Without the additional sectors introduced into t ...
... goods and services supplied by a sector is supposed to equal the total of the goods and services received by it. In the matrix this means that the total of each row of the square matrix must equal the corresponding column total (i.e. Yb c= Vb"~ etc.). Without the additional sectors introduced into t ...
Document
... 9. At what point does the social security tax (FICA) on income stop, limiting the tax liability for wealthier people? a) $110,000, b) $225,000, c) $1.2 million, d) $2.2 million. 10. When Bush took office in 2001, the budget was balanced and the national debt stood at: a) $3.3 trillion, b) $5.7 trill ...
... 9. At what point does the social security tax (FICA) on income stop, limiting the tax liability for wealthier people? a) $110,000, b) $225,000, c) $1.2 million, d) $2.2 million. 10. When Bush took office in 2001, the budget was balanced and the national debt stood at: a) $3.3 trillion, b) $5.7 trill ...
Global Economic Model
... ■ In the short run, shocks to demand will generate economic cycles that can be influenced by fiscal and monetary policy. ■ But over the long-run, output is determined by supply side factors: investment, demographics, labour participation and productivity. ...
... ■ In the short run, shocks to demand will generate economic cycles that can be influenced by fiscal and monetary policy. ■ But over the long-run, output is determined by supply side factors: investment, demographics, labour participation and productivity. ...
Do We Have a “New” Macroeconomy?
... account for the reduction in the economy’s sustainable level of unemployment. And improvements in information systems should diminish the aggregate economy’s vulnerability to inventory fluctuations, which have for more than a century been a principal driving force behind the business cycle. ...
... account for the reduction in the economy’s sustainable level of unemployment. And improvements in information systems should diminish the aggregate economy’s vulnerability to inventory fluctuations, which have for more than a century been a principal driving force behind the business cycle. ...
Problem Set 1
... interest rate is not allowed to change, the Fed must offset any change in the LM curve. For example, if money demand rises, the LM curve will shift up, causing the interest rate to rise. The Fed will respond by increasing the money supply, which pushes the LM curve, and the interest rate, back down ...
... interest rate is not allowed to change, the Fed must offset any change in the LM curve. For example, if money demand rises, the LM curve will shift up, causing the interest rate to rise. The Fed will respond by increasing the money supply, which pushes the LM curve, and the interest rate, back down ...
Equilibrium in the AD/AS Model
... – Once real GDP has returned to Yp, the economy is back in long-run equilibrium. – The price level has increased even further. ...
... – Once real GDP has returned to Yp, the economy is back in long-run equilibrium. – The price level has increased even further. ...
Unit 10 : Economics - Department of Computing
... the potential to increase the supply of money depending on how that overspend is financed. Here you see the bridge between fiscal policy and monetary policy, that is to say, the financing of budget deficits (and surpluses for that matter). A third cause of money supply growth results from movements ...
... the potential to increase the supply of money depending on how that overspend is financed. Here you see the bridge between fiscal policy and monetary policy, that is to say, the financing of budget deficits (and surpluses for that matter). A third cause of money supply growth results from movements ...
Dust Bowl - Cloudfront.net
... Overall US production plummets Allies cannot pay debts to United States ...
... Overall US production plummets Allies cannot pay debts to United States ...
Econ 209 - 70 Question Sample Final
... constant, drives the "price" of borrowing down. D) interest rates move in cycles and therefore tend to rise before they fall. E) none of the above. 40) In the long run, increases in potential GDP are possible only if there is A) no government interference with the market system. B) growth in the sup ...
... constant, drives the "price" of borrowing down. D) interest rates move in cycles and therefore tend to rise before they fall. E) none of the above. 40) In the long run, increases in potential GDP are possible only if there is A) no government interference with the market system. B) growth in the sup ...
國立嘉義大學95學年度
... falls during both recessions and expansions. rises during a recession and falls during an expansion. rises during both recessions and expansions. ...
... falls during both recessions and expansions. rises during a recession and falls during an expansion. rises during both recessions and expansions. ...
CATO economic considerations. And the process is pathologically short-
... of improving the long-term productive capacity of the economy, The Supply-Side Solution is an important contribution in this regard. It provides us with a series of articles by serious scholars who make a compelling case that supply-side economics is a viable long-run solution to ...
... of improving the long-term productive capacity of the economy, The Supply-Side Solution is an important contribution in this regard. It provides us with a series of articles by serious scholars who make a compelling case that supply-side economics is a viable long-run solution to ...
Document
... A sustainable, higher level of real output and real income is the result. ***If the money supply is held constant, a new long-run equilibrium will emerge at a larger output rate (YF2) and lower ...
... A sustainable, higher level of real output and real income is the result. ***If the money supply is held constant, a new long-run equilibrium will emerge at a larger output rate (YF2) and lower ...
Practice Test – Chapters 11,12,13, Multiple Choice Identify the
... A) is undertaken at the option of the nation's central bank. B) occurs automatically as the nation's level of GDP changes. C) involves specific changes in T and G undertaken expressly for stabilization at the option of Congress. D) is invoked secretly by the Council of Economic Advisers. Answer: C C ...
... A) is undertaken at the option of the nation's central bank. B) occurs automatically as the nation's level of GDP changes. C) involves specific changes in T and G undertaken expressly for stabilization at the option of Congress. D) is invoked secretly by the Council of Economic Advisers. Answer: C C ...