... The Posttest for this Macroeconomics course assesses your knowledge of the economic way of thinking, effective resources allocation, measurements of GDP and inflation, employment and output, growth rates, financial markets function, components of US monetary system, changes in supply of and demand f ...
Institute of Certified Management Accountants of Sri Lanka Foundation Level
... (b) Supply side policies. (c) Demand side policies. (d) Classical economies. (25) To get real per capita income: (a) GDP must be divided by the population. (b) GNP must be divided by the population. (c) Real GNP must be divided by the mid-year population. (d) Real GNP must be divided by the current ...
... (b) Supply side policies. (c) Demand side policies. (d) Classical economies. (25) To get real per capita income: (a) GDP must be divided by the population. (b) GNP must be divided by the population. (c) Real GNP must be divided by the mid-year population. (d) Real GNP must be divided by the current ...
Chapter 1
... 7. The views are clearly not affected by the classical model since changes in the money supply will have no real effects in the classical model (i.e., the Fed cannot affect output in that model). We should note that in both the Keynesian and monetarist models the Fed can affect output in the short-r ...
... 7. The views are clearly not affected by the classical model since changes in the money supply will have no real effects in the classical model (i.e., the Fed cannot affect output in that model). We should note that in both the Keynesian and monetarist models the Fed can affect output in the short-r ...
What Is a Business Cycle?
... Business Cycle Facts • International aspects of the business cycle – The cyclical behavior of key economic variables in other countries is similar to that in the United States – Major industrial countries frequently have recessions and expansions at about the same time – Fig. 8.13 illustrates commo ...
... Business Cycle Facts • International aspects of the business cycle – The cyclical behavior of key economic variables in other countries is similar to that in the United States – Major industrial countries frequently have recessions and expansions at about the same time – Fig. 8.13 illustrates commo ...
The Crisis and the Global South: From
... Woods in 1944, in large part the result of western Europe and Japan challenging US industrial hegemony, created uncertainty in international trade and investment, and transmitted inflationary pressures around the world economy. The action taken by OPEC in 1973 to reverse the declining purchasing pow ...
... Woods in 1944, in large part the result of western Europe and Japan challenging US industrial hegemony, created uncertainty in international trade and investment, and transmitted inflationary pressures around the world economy. The action taken by OPEC in 1973 to reverse the declining purchasing pow ...
CHAPTER 15: FISCAL POLICY Section 1: Understanding Fiscal
... What is the main premise of classical economics? What major event challenged this economic “school of thought”? 2. *Explain the deadlock that was occurring between producers and consumers in a depressed economy. 3. Who was John Maynard Keynes? 4. What is demand-side economics? How is it different fr ...
... What is the main premise of classical economics? What major event challenged this economic “school of thought”? 2. *Explain the deadlock that was occurring between producers and consumers in a depressed economy. 3. Who was John Maynard Keynes? 4. What is demand-side economics? How is it different fr ...
neweconchsunit3upload - Goshen Community Schools
... Aggregate demand (AD): the amount of goods and services in the economy that will be purchased at all possible price levels Price level: the average of all prices in the economy See graph: Business cycle: a period of macroeconomic expansion followed by a period of contraction (equilibrium changes, sh ...
... Aggregate demand (AD): the amount of goods and services in the economy that will be purchased at all possible price levels Price level: the average of all prices in the economy See graph: Business cycle: a period of macroeconomic expansion followed by a period of contraction (equilibrium changes, sh ...
The 4 Types of Economic Systems reading 2015-2016
... A traditional economic system is the best place to start because it is the oldest type of economy in the world. There are certain elements of a traditional economy that those in more advanced economies, such as Mixed, would like to see return. Traditional economies still produce products and service ...
... A traditional economic system is the best place to start because it is the oldest type of economy in the world. There are certain elements of a traditional economy that those in more advanced economies, such as Mixed, would like to see return. Traditional economies still produce products and service ...
Panel 2, Songzuo Xiang | Challenges of the International Monetary
... Ronald McKinnon and Kenichi Ohno Hypothesis: Generalized exchange rates floating leads to Global Growth Slowdown. “ The major puzzle of postwar economic history is the slowdown of the growth trend of major industrial countries in the early 1970s. The timing of the slowdown largely coincided with th ...
... Ronald McKinnon and Kenichi Ohno Hypothesis: Generalized exchange rates floating leads to Global Growth Slowdown. “ The major puzzle of postwar economic history is the slowdown of the growth trend of major industrial countries in the early 1970s. The timing of the slowdown largely coincided with th ...
Bank of Canada - McGraw Hill Higher Education
... is as safe for them to invest in the other country as in their own. Therefore, even the smallest difference in interest rates would cause money to flood out of the country with the lower rate. This being the case, if the major country lowers its interest rate for example, then the other country must ...
... is as safe for them to invest in the other country as in their own. Therefore, even the smallest difference in interest rates would cause money to flood out of the country with the lower rate. This being the case, if the major country lowers its interest rate for example, then the other country must ...
Inflation - Oldfield Economics
... When aggregate demand is rising faster than the ability of the economy to supply goods and services – leading to excess demand Positive output gap (when actual GDP > Trend GDP) Businesses respond by raising prices to increase their profit margins Demand-pull inflation associated with the boom phase ...
... When aggregate demand is rising faster than the ability of the economy to supply goods and services – leading to excess demand Positive output gap (when actual GDP > Trend GDP) Businesses respond by raising prices to increase their profit margins Demand-pull inflation associated with the boom phase ...
The Great Depression of the 1930s
... think it could have been large in some years (ZLB, U) • Recent estimates include Gordon & Krenn (2010) at 1.8 but Ramey & Zuchairy (2014) only 0.8 • NB: the key issue is how far output increases reflect expect future government spending (Ramey, 2011) so need a strategy to exploit ‘fiscal news’ ...
... think it could have been large in some years (ZLB, U) • Recent estimates include Gordon & Krenn (2010) at 1.8 but Ramey & Zuchairy (2014) only 0.8 • NB: the key issue is how far output increases reflect expect future government spending (Ramey, 2011) so need a strategy to exploit ‘fiscal news’ ...
Chapter 13
... Theories on How to Control The Economy Demand Side Economics Developed by _____________________ Called ________________________ Theory Goal of demand side economics is to stimulate the economy using fiscal policy Remember: Keynes said deficit spending was _____ in the short run. The theor ...
... Theories on How to Control The Economy Demand Side Economics Developed by _____________________ Called ________________________ Theory Goal of demand side economics is to stimulate the economy using fiscal policy Remember: Keynes said deficit spending was _____ in the short run. The theor ...
Incl. also international appendices
... In Germany, by contrast, the recession has shown up only in GDP, not at all in employment. ...
... In Germany, by contrast, the recession has shown up only in GDP, not at all in employment. ...
Aggregate Demand/Aggregate Supply Model Differences
... Oil prices are at record highs. And we wonder how is this going to affect the macroeconomy? What will be the effect on the aggregate price level and aggregate output as a result of this price shock? Well, oil prices affect the economy through the input prices that producers have to pay to make the g ...
... Oil prices are at record highs. And we wonder how is this going to affect the macroeconomy? What will be the effect on the aggregate price level and aggregate output as a result of this price shock? Well, oil prices affect the economy through the input prices that producers have to pay to make the g ...
Central Planning and Big Government: Kaput
... One detriment to economic forecasting has been the assumption of a national economy that can be managed. There is no such thing as a national economy, isolated from all others. Two thousand years ago, Cicero observed that when the provinces in the Middle East suffered credit distress it would soon h ...
... One detriment to economic forecasting has been the assumption of a national economy that can be managed. There is no such thing as a national economy, isolated from all others. Two thousand years ago, Cicero observed that when the provinces in the Middle East suffered credit distress it would soon h ...
Prospects for international economic cooperation
... policies.4 What will these stages require from the major economic actors, and what does that imply for international economic cooperation? The global macroeconomic imbalances discussed above played a central role in the crisis. Of particular importance were the current account deficits of some count ...
... policies.4 What will these stages require from the major economic actors, and what does that imply for international economic cooperation? The global macroeconomic imbalances discussed above played a central role in the crisis. Of particular importance were the current account deficits of some count ...
Fiscal Policy
... Except in absolute dictatorships, government will have mechanisms for building a consensus for expenditures. Adjusting this consensus will be time consuming. If lags are too long, stabilizing government spending or transfer payments may have a destabilizing effect, shifting out demand after the ...
... Except in absolute dictatorships, government will have mechanisms for building a consensus for expenditures. Adjusting this consensus will be time consuming. If lags are too long, stabilizing government spending or transfer payments may have a destabilizing effect, shifting out demand after the ...
v. ongoing changes in the business cycle
... 12. The euro area average, however, disguises major differences across countries: net trade is now less of a stabiliser for Austria and Germany than it was 20-30 years ago while, for Italy and Spain, the stabilisation effects have increased substantially. The effect for France is almost unchanged ov ...
... 12. The euro area average, however, disguises major differences across countries: net trade is now less of a stabiliser for Austria and Germany than it was 20-30 years ago while, for Italy and Spain, the stabilisation effects have increased substantially. The effect for France is almost unchanged ov ...
The Great Recession of 2008-09 - University of Wisconsin
... serves as a buffer against losses. Many banks have failed, and failure has become more likely for many others. Banks and other financial institutions became reluctant to lend or to enter into other transactions, because they could not judge the soundness of potential borrowers and other ...
... serves as a buffer against losses. Many banks have failed, and failure has become more likely for many others. Banks and other financial institutions became reluctant to lend or to enter into other transactions, because they could not judge the soundness of potential borrowers and other ...