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GACE Economics Assessment Study Companion
GACE Economics Assessment Study Companion

... B. Understands the macroeconomic goals for an economy, including economic growth, full employment, and price stability C. Understands how gross domestic product (GDP) is defined and the different approaches used to measure GDP D. Understands the shortcomings of GDP as a measure of output and standar ...
Chapter 29
Chapter 29

... A) increases as the price level increases because firms supply more goods and services. B) decreases as the price level increases because people demand fewer goods and services. C) might either increase or decrease as the price level increases, depending on whether aggregate demand increases or decr ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY AND FISCAL POLICY Jordi Gali
NBER WORKING PAPER SERIES OPTIMAL MONETARY AND FISCAL POLICY Jordi Gali

... a change in government spending are ambiguous, –since they always depend on the endogenous response of monetary policy to the …scal intervention4 – this is not case for a country in a currency union: in the latter case an increase in government spending always raises output and the price level in t ...
Managing Credit Bubbles - Universitat Pompeu Fabra
Managing Credit Bubbles - Universitat Pompeu Fabra

... acknowledge support from the ERC (Consolidator Grant FP7-615651-MacroColl and Advanced Grant FP7-249588ABEP, respectively), and Martin thanks the IMF Research Fellowship. ...
Modeling the Effect of Macroeconomic Factors on Corporate Default
Modeling the Effect of Macroeconomic Factors on Corporate Default

EN EN 1. Introduction In the Letter of Intent accompanying the 2016
EN EN 1. Introduction In the Letter of Intent accompanying the 2016

... There is both a need and a window of opportunity to act on the fiscal front at this precise juncture, also to rebalance the overall policy mix of the euro area. Actual and expected inflation expectations continue to fall short of the definition of price stability set by the ECB (understood as inflat ...
to a PDF of this article which includes
to a PDF of this article which includes

... economic bust, relieve unemployment or even entirely dispel fears of a second recession. Economists do not expect growth to accelerate in the next few quarters to the point that it drives the unemployment rate well below 9 percent.10 However, due perhaps to a lack of encouraging economic news over t ...
Understanding Guyana`s Recent Growth Process
Understanding Guyana`s Recent Growth Process

The role of labor markets for euro area monetary - ECB
The role of labor markets for euro area monetary - ECB

... Labor markets in the euro area are characterized by various frictions hampering the adjustment in the labor market and affecting the business cycle dynamics in the euro area. More specifically, euro area labor markets are characterized by a long duration of individual unemployment spells and inflexible ...
Economics for Investment Decision Makers Workbook
Economics for Investment Decision Makers Workbook

Wage Rigidity in the Great Depression June, 2012 Christopher Hanes Department of Economics
Wage Rigidity in the Great Depression June, 2012 Christopher Hanes Department of Economics

... Studies that compare inflation across business cycles of the pre-1914, postwar and interwar eras generally find that inflation fell more rapidly in 1920-21 than in any other cyclical downturn, in any era. Schultze (1981, p. 562), Gordon (1983, p. 105) and Vernon (1991) argue that this was because th ...
IOSR Journal of Economics and Finance (IOSR-JEF)
IOSR Journal of Economics and Finance (IOSR-JEF)

... leads to a deficit budget which is financed either through borrowing from the local or international market or through an increase in the taxies levied on the citizens. The issue of budget deficit has been one of the great debates among economists due to the observations that a lot countries seem to ...
About
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... In "A Beginner's Guide to Economic Indicators" we examine that question.... Why Are Tariffs Preferable to Quotas? About Economics July 7, 2005, 12:14 pm A reader asks: "Why are tariffs preferred to quantitative restrictions as a means of controlling imports?" In "Why Are Tariffs Preferable to Quotas ...
effects of government spending on economic
effects of government spending on economic

... governments making up a considerable portion of the Gross National Product. Government spending can be financed by government borrowing or taxes. The expenditure is vital for the efficient running of the economy. The need for much of the government expenditure arises from the fact that some goods ca ...
Optimal Policy with Endogenous Signal Extraction
Optimal Policy with Endogenous Signal Extraction

... (perhaps due to a lower expected productive capacity of the economy) or to a temporary shock (perhaps due to a fall in demand). All we knew for sure in November 2008 was that employment and output were low, and yet the G20 decided in its Washington meeting to take aggressive expansionary fiscal pol ...
EEAG - CESifo Group Munich
EEAG - CESifo Group Munich

Chapter 7 Aggregate Demand and Aggregate Supply
Chapter 7 Aggregate Demand and Aggregate Supply

... translated into increased consumption and increased aggregate demand. In contrast, a decrease in consumption would accompany diminished consumer expectations and a decrease in consumer confidence, as happened after the stock market crash of 1929. The same problem has plagued the economies of most We ...
1. For economists, the word "utility" means: A
1. For economists, the word "utility" means: A

Analysis of macroeconomic shocks in FSU countries
Analysis of macroeconomic shocks in FSU countries

... to the above mentioned shocks by considering impulse response functions. Analyzing the shock adjustment process is important because even though the countries may be subject to the same shocks, different structures of economy may result in different responses what in turn makes it difficult for comm ...
Working papers - Federal Reserve Bank of Cleveland
Working papers - Federal Reserve Bank of Cleveland

... algorithm and applying it to U.S. data suggests that the United States faced two bouts of stagflation in the postwar era, 1974Q3–1975Q1 and 1980Q2–1980Q3. The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we ...
evaluating qualitative forecasts: the fomc minutes, 2006-2010
evaluating qualitative forecasts: the fomc minutes, 2006-2010

... assesses the strength of the US economy. This quantitative index is supplemented with a textual analysis of the minutes to determine the information that the members of the FOMC considered in making their judgments. This paper makes three contributions to the forecasting literature. Two are methodo ...
Cyclical fiscal policy in developing countries: the case of Africa
Cyclical fiscal policy in developing countries: the case of Africa

... reduces household’s private consumption. The transmission mechanism may work through the expectation that taxes will increase in the future and/or via the wealth effect associated with the upward adjustment of interest rates. In both cases, the likelihood that fiscal policy has non-Keynesian effects ...
Mankiw 5/e Chapter 10: Aggregate Demand I
Mankiw 5/e Chapter 10: Aggregate Demand I

This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... and social progress of four developing countries dependent on coffee exports are analyzed with a view to evaluating the social impact of institutional arrangements that attempt to diminish the fluctuations in various macroeconomic variables as changes in terms of trade occur. The hypothesis is that ...
Reports - UM Personal World Wide Web Server
Reports - UM Personal World Wide Web Server

... rises in 8 states despite a 12 percent decline nationwide. (3) There is a lack of comovement between components of GDP. Durables consumption falls over 17 percent while nondurables consumption rises. The 1937-38 recession is the only time since 1929 in which nondurables spending rises in a recession ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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