Topics_and_schedule
... Lesson 5 (discussion) Date: 29.5.2014 Topics (what is to be discussed) 9. Fiscal Policy 10. International Trade and Economical Integration Reading (what to study at least) Hoag: Ch. 23, 25, 30 - 31 .ppt slides 9 – 10 General Questions What is fiscal policy? Speak about tools of fiscal policy: discr ...
... Lesson 5 (discussion) Date: 29.5.2014 Topics (what is to be discussed) 9. Fiscal Policy 10. International Trade and Economical Integration Reading (what to study at least) Hoag: Ch. 23, 25, 30 - 31 .ppt slides 9 – 10 General Questions What is fiscal policy? Speak about tools of fiscal policy: discr ...
EC201 Principles of Macroeconomics
... This class provides an introduction to macroeconomic analysis. Whereas the field of microeconomics studies individual markets for goods, services, and factors of production, the field of macroeconomics studies the behavior of the economy as a whole. Central problems in macroeconomic analysis include ...
... This class provides an introduction to macroeconomic analysis. Whereas the field of microeconomics studies individual markets for goods, services, and factors of production, the field of macroeconomics studies the behavior of the economy as a whole. Central problems in macroeconomic analysis include ...
Aggregate Demand
... consumer spending. ◦ The second is the interest rate effect of a change in aggregate the price level—a higher aggregate price level reduces the purchasing power of households’ money, leading to a rise in interest rates and a fall in investment spending and consumer spending ...
... consumer spending. ◦ The second is the interest rate effect of a change in aggregate the price level—a higher aggregate price level reduces the purchasing power of households’ money, leading to a rise in interest rates and a fall in investment spending and consumer spending ...
GDP
... well-being of a society. GDP per person tells us the income and expenditure of the average person in the economy. Higher GDP per person indicates a higher standard of living. GDP is not a perfect measure of the happiness or quality of life, however. ...
... well-being of a society. GDP per person tells us the income and expenditure of the average person in the economy. Higher GDP per person indicates a higher standard of living. GDP is not a perfect measure of the happiness or quality of life, however. ...
No: 2011 -24 Meeting Date: July 21, 2011
... 14. Even if the debt problems in the euro area are resolved before they turn into a global crisis, it is still likely to experience an extended period of weak economic activity in advanced economies coupled with continued growth in emerging markets driven by domestic demand. In such a case, there ma ...
... 14. Even if the debt problems in the euro area are resolved before they turn into a global crisis, it is still likely to experience an extended period of weak economic activity in advanced economies coupled with continued growth in emerging markets driven by domestic demand. In such a case, there ma ...
Last day to sign up for AP Exam
... Real-Balance EffectHigher price levels reduce the purchasing power of money This decreases the quantity of expenditures Lower price levels increase purchasing power and increase expenditures Example: • If the balance in your bank was $50,000, but inflation erodes your purchasing power, you will like ...
... Real-Balance EffectHigher price levels reduce the purchasing power of money This decreases the quantity of expenditures Lower price levels increase purchasing power and increase expenditures Example: • If the balance in your bank was $50,000, but inflation erodes your purchasing power, you will like ...
APS7 - Cornell
... 7. Suppose the dollar has been falling in value for more than 18 months against major currencies in the world. If the Fed increases the money supply to accommodate a growth in output a. it is following a contractionary monetary policy. b. it is not accommodation inflation c. the dollar will fall eve ...
... 7. Suppose the dollar has been falling in value for more than 18 months against major currencies in the world. If the Fed increases the money supply to accommodate a growth in output a. it is following a contractionary monetary policy. b. it is not accommodation inflation c. the dollar will fall eve ...
Publication Summary PDF
... unemployment of the Great Depression. In the period from 1979 to 1982, money supply targeting (i.e., targeting a metric of monetary assets such as cash plus bank deposits) was used as a means of combatting high inflation. After 1982, the Fed set interest rates in response to inflation changes (often ...
... unemployment of the Great Depression. In the period from 1979 to 1982, money supply targeting (i.e., targeting a metric of monetary assets such as cash plus bank deposits) was used as a means of combatting high inflation. After 1982, the Fed set interest rates in response to inflation changes (often ...
AP Macro Unit 3 Student Notes
... that there is no savings for business.) (Although in a real world if income increases investment may increase.) There are two determinants for investment: 1. Expected Rate of Net Profit: 2. The Real Interest Rate: This is the financial cost that the business must pay to borrow money to purchase real ...
... that there is no savings for business.) (Although in a real world if income increases investment may increase.) There are two determinants for investment: 1. Expected Rate of Net Profit: 2. The Real Interest Rate: This is the financial cost that the business must pay to borrow money to purchase real ...
Economic Growth and Instability
... Four phases of the business cycle are identified over a several-year period: • Peak – When business activity reaches a temporary maximum with full employment and near-capacity output. • Recession – A decline in total output, income, employment, and trade lasting six months or more • Trough – The bot ...
... Four phases of the business cycle are identified over a several-year period: • Peak – When business activity reaches a temporary maximum with full employment and near-capacity output. • Recession – A decline in total output, income, employment, and trade lasting six months or more • Trough – The bot ...
Presentation to the Financial Women’s Association of San Francisco
... their budgets. As a result, fiscal policy in the United States has shifted from the accelerator to the brakes as far as growth is concerned.4 The numbers tell the story. Government consumption expenditures and investment have declined 5.3 percent over the past two years, adjusted for inflation. That ...
... their budgets. As a result, fiscal policy in the United States has shifted from the accelerator to the brakes as far as growth is concerned.4 The numbers tell the story. Government consumption expenditures and investment have declined 5.3 percent over the past two years, adjusted for inflation. That ...
Monetary Policy
... • If money supply grows at a faster rate than real GDP inflation. • If money supply grows at a slower rate than real GDP, deflation. Very high rates of inflation—in excess of hundreds or thousands of percentage points per year—are known as hyperinflation. Economies suffering from high inflation ...
... • If money supply grows at a faster rate than real GDP inflation. • If money supply grows at a slower rate than real GDP, deflation. Very high rates of inflation—in excess of hundreds or thousands of percentage points per year—are known as hyperinflation. Economies suffering from high inflation ...
Aggregate Supply
... • When inflation is fully anticipated there are no winners and losers – Creditors have learned to charge enough interest to take into account, or anticipate, the rate of inflation over the course of the loan • This is tacked onto the regular interest rate that the lender would charge had no inflatio ...
... • When inflation is fully anticipated there are no winners and losers – Creditors have learned to charge enough interest to take into account, or anticipate, the rate of inflation over the course of the loan • This is tacked onto the regular interest rate that the lender would charge had no inflatio ...
Syllabus - Harvard Kennedy School
... This course deals with the macroeconomics of open economies. The emphasis will be on models appropriate to major countries. Topics include the foreign exchange market, devaluation, and import and export elasticities; the simultaneous determination of the trade balance, national income, the balance o ...
... This course deals with the macroeconomics of open economies. The emphasis will be on models appropriate to major countries. Topics include the foreign exchange market, devaluation, and import and export elasticities; the simultaneous determination of the trade balance, national income, the balance o ...
quantitytheory
... The Purpose of the Fed McCandless and Weber (1995) write: The Federal Reserve System was established in 1913 to provide an elastic currency, discount commercial credit, and supervise the banking system in the United States. Congress changed those purposes somewhat with the Employment Act of 1946 an ...
... The Purpose of the Fed McCandless and Weber (1995) write: The Federal Reserve System was established in 1913 to provide an elastic currency, discount commercial credit, and supervise the banking system in the United States. Congress changed those purposes somewhat with the Employment Act of 1946 an ...
Part B New Keynesian Economics
... Rather than going into each model in detail (there are several covered in Part C of the text), this reading guide will discuss new Keynesian models in a general sense. For the most part, these models were developed in response to the new Classical approach. In the end, we will arrive at the same bas ...
... Rather than going into each model in detail (there are several covered in Part C of the text), this reading guide will discuss new Keynesian models in a general sense. For the most part, these models were developed in response to the new Classical approach. In the end, we will arrive at the same bas ...
lesson 4
... the work force more productive. Explain your reasoning. Both long-run and short-run aggregate supply increase. The PPC shifts outward. The increase in education makes the labor force more productive with the same natural resources. This means that workers can produce more, thus increasing real GDP. ...
... the work force more productive. Explain your reasoning. Both long-run and short-run aggregate supply increase. The PPC shifts outward. The increase in education makes the labor force more productive with the same natural resources. This means that workers can produce more, thus increasing real GDP. ...
2011 Fall Issue - East Stroudsburg University
... inevitably arises. Though trends of growing gaps in unemployment rates between certain groups suggest that employment discrimination may be occurring, we must also consider some of the nondiscriminatory factors that may be partially responsible for such economic trends. The first nondiscriminatory f ...
... inevitably arises. Though trends of growing gaps in unemployment rates between certain groups suggest that employment discrimination may be occurring, we must also consider some of the nondiscriminatory factors that may be partially responsible for such economic trends. The first nondiscriminatory f ...
Chapter 1
... Determinants of Consumption, Investment and Net Exports Importance of equilibrium and inventory levels Net Exports, exporting recessions and expansions CIGXM and full employment Income/spending expansion & contraction of real GDP Induced v. autonomous changes in spending Role of Inventories Calculat ...
... Determinants of Consumption, Investment and Net Exports Importance of equilibrium and inventory levels Net Exports, exporting recessions and expansions CIGXM and full employment Income/spending expansion & contraction of real GDP Induced v. autonomous changes in spending Role of Inventories Calculat ...
Introduction to Economic Growth and Instability
... Inflation: Defined and Measured A. Definition: Inflation is a rising general level of prices (not all prices rise at the same rate, and some may fall). B. To measure inflation, subtract last year’s price index from this year’s price index and divide by last year’s index; then multiply by 100 to expr ...
... Inflation: Defined and Measured A. Definition: Inflation is a rising general level of prices (not all prices rise at the same rate, and some may fall). B. To measure inflation, subtract last year’s price index from this year’s price index and divide by last year’s index; then multiply by 100 to expr ...