ECON 2020-200 Principles of Macroeconomics
... The objective of economic growth and problems of unemployment, inflation and recession will be analyzed. We will study the available macroeconomic policies that can be used to correct for these problems. The analysis will first be developed within the context of a closed (domestic) economy and then ...
... The objective of economic growth and problems of unemployment, inflation and recession will be analyzed. We will study the available macroeconomic policies that can be used to correct for these problems. The analysis will first be developed within the context of a closed (domestic) economy and then ...
1. Overproduction 2. Banking & Money Policies 3
... • In September of 1929 the U.S. economy began showing signs of contraction (decline from the growth of the 1920’s) • August 1929, recession begins, GDP falls by and unemployment rises. • Automobile sales fall 30% in 1929. • By 1929 farm incomes fall more than 50% • September 1929 stock prices begin ...
... • In September of 1929 the U.S. economy began showing signs of contraction (decline from the growth of the 1920’s) • August 1929, recession begins, GDP falls by and unemployment rises. • Automobile sales fall 30% in 1929. • By 1929 farm incomes fall more than 50% • September 1929 stock prices begin ...
The Interdependence of Markets
... achieving this it will have to lower them: lower interest rates will cause capital to flow out of Britain and this will cause the rate of exchange to depreciate. But there is a dilemma here. The government wants high interest rates to contain inflation but low interest rates to help exporters. But o ...
... achieving this it will have to lower them: lower interest rates will cause capital to flow out of Britain and this will cause the rate of exchange to depreciate. But there is a dilemma here. The government wants high interest rates to contain inflation but low interest rates to help exporters. But o ...
Keynesian vs. monetarist/new classical view
... in bidding up wages and firms will have excess (unused) capacity, costs in firms do not rise when output increases. ...
... in bidding up wages and firms will have excess (unused) capacity, costs in firms do not rise when output increases. ...
Unit 7 Trade and the Business Cycle
... 1. Expansion - GDP is increasing; a. Inflation - increase in prices of goods and services over time. (People have more $ to spend, therefore demand for all goods and services increases, which causes prices to rise as well.) 2. Peak - end of a period of expansion; the highest point of economic output ...
... 1. Expansion - GDP is increasing; a. Inflation - increase in prices of goods and services over time. (People have more $ to spend, therefore demand for all goods and services increases, which causes prices to rise as well.) 2. Peak - end of a period of expansion; the highest point of economic output ...
Policy Lags
... on policy-related issues. This unit explores the interactions between monetary and fiscal policy. We will also discuss economic growth, a longrun concept. ...
... on policy-related issues. This unit explores the interactions between monetary and fiscal policy. We will also discuss economic growth, a longrun concept. ...
Economics 202
... monetary policy, fiscal policy and changes in the international economy on the economic performance of an individual country in a global environment. The effect of fiscal and monetary policy on the economy will be a major topic in the course. Fiscal policy refers to federal government expenditure an ...
... monetary policy, fiscal policy and changes in the international economy on the economic performance of an individual country in a global environment. The effect of fiscal and monetary policy on the economy will be a major topic in the course. Fiscal policy refers to federal government expenditure an ...
AP ch35 pt
... D. Sufficient time has elapsed for real GDP to increase and unemployment to decrease as a consequence 4. Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your: A. Real wage has increased to $21 B. Real wage has decreased t ...
... D. Sufficient time has elapsed for real GDP to increase and unemployment to decrease as a consequence 4. Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your: A. Real wage has increased to $21 B. Real wage has decreased t ...
Some thoughts on unemployment
... less they invest in physical capital.” The book also serves as an important reminder that it is new capital investment, consumer and government spending, net exports, and, most of all, rising wages that create the demand necessary to maintain full employment. Fundamental to Keynes is the idea that i ...
... less they invest in physical capital.” The book also serves as an important reminder that it is new capital investment, consumer and government spending, net exports, and, most of all, rising wages that create the demand necessary to maintain full employment. Fundamental to Keynes is the idea that i ...
Lecture 19: From Stability to Inflation: 1950-1980
... Legacy of the Great Depression: Belief in Activist Fiscal Policy • Fear of unemployment. Keep it low. • The Phillips Curve? Economists find a trade-off between inflation and unemployment. • Paul Samuelson and Robert Solow (1960) identify 3% unemployment as goal but may have 6% inflation. Arthur Oku ...
... Legacy of the Great Depression: Belief in Activist Fiscal Policy • Fear of unemployment. Keep it low. • The Phillips Curve? Economists find a trade-off between inflation and unemployment. • Paul Samuelson and Robert Solow (1960) identify 3% unemployment as goal but may have 6% inflation. Arthur Oku ...
Aggregate Production Function
... Investment in the U.S. could either increase or decrease relative to its initial level. There will be no effect on investment in the U.S. ...
... Investment in the U.S. could either increase or decrease relative to its initial level. There will be no effect on investment in the U.S. ...
Final - Wofford
... The figure below shows the inflation and unemployment rates that occurred while Paul Volcker worked at reducing the level of inflation during the 1980s. As inflation fell, unemployment rose. In fact, the United States experienced its deepest recession since the Great Depression. The reason that unem ...
... The figure below shows the inflation and unemployment rates that occurred while Paul Volcker worked at reducing the level of inflation during the 1980s. As inflation fell, unemployment rose. In fact, the United States experienced its deepest recession since the Great Depression. The reason that unem ...
Origins of Great Depression II
... ii) This meant that mass consumption spending lagged. iii) But rising profitability encouraged increased fixed investment, pulling the economy forward: profit-led growth. D. Laissez-faire finance allowed abundant creation of credit, which allowed investment to expand. E. Problems with this kind of e ...
... ii) This meant that mass consumption spending lagged. iii) But rising profitability encouraged increased fixed investment, pulling the economy forward: profit-led growth. D. Laissez-faire finance allowed abundant creation of credit, which allowed investment to expand. E. Problems with this kind of e ...
Current Global Crisis
... Case 2 China Chinese Economy One of the fastest growing economies in the world. Since free market reforms in 1978 China's GDP has grown an average 9.9 % a year. The second largest economy in the world with a GDP of $10.8 trillion (2007) when measured on a purchasing power parity basis. In 2 ...
... Case 2 China Chinese Economy One of the fastest growing economies in the world. Since free market reforms in 1978 China's GDP has grown an average 9.9 % a year. The second largest economy in the world with a GDP of $10.8 trillion (2007) when measured on a purchasing power parity basis. In 2 ...
Law of Supply and Demand
... They do this through monetary policy The Federal Reserve increases interest rates which makes borrowing more difficult and curtails growth of money supply which takes excess money out of the money supply Can also be caused when consumers “sit on their wallets” production may decrease. If it de ...
... They do this through monetary policy The Federal Reserve increases interest rates which makes borrowing more difficult and curtails growth of money supply which takes excess money out of the money supply Can also be caused when consumers “sit on their wallets” production may decrease. If it de ...
Chapter 14
... nearly impossible to vote for higher interest rates, and the result would be that the economy had a bias toward letting inflation get established. • Fixed rules: fixed rules as to when the money supply would be allowed to grow (in accordance with the rate in growth of the economy). But new financial ...
... nearly impossible to vote for higher interest rates, and the result would be that the economy had a bias toward letting inflation get established. • Fixed rules: fixed rules as to when the money supply would be allowed to grow (in accordance with the rate in growth of the economy). But new financial ...
1 - nrapmacro
... Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. ...
... Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. ...
Global slowdown a near-term headwind US exporting more to the
... TD Economics www.td.com/economics This report is provided by TD Economics for customers of TD Bank Group. It is for information purposes only and may not be appropriate for other purposes. The report does not provide material information about the business and affairs of TD Bank Group and the membe ...
... TD Economics www.td.com/economics This report is provided by TD Economics for customers of TD Bank Group. It is for information purposes only and may not be appropriate for other purposes. The report does not provide material information about the business and affairs of TD Bank Group and the membe ...
Events Leading up to the Financial Crisis
... o 240B in tax breaks, 140B in health care, 100B in education, 48B transportation o Temporary tax breaks tend to have no stimulus effect – see Bush tax rebates 168B in 2008. • How large is this? o This is about 5.5% of 2008 GDP and o 73% of federal spending on goods and services in 2008 o Supporters ...
... o 240B in tax breaks, 140B in health care, 100B in education, 48B transportation o Temporary tax breaks tend to have no stimulus effect – see Bush tax rebates 168B in 2008. • How large is this? o This is about 5.5% of 2008 GDP and o 73% of federal spending on goods and services in 2008 o Supporters ...
Aggregate Supply
... Aggregate demand represents the sum of consumption (C), investment spending (I), government spending (G), and net exports (X-IM or NX) The quantity of goods and services demanded at any given price level is aggregate ...
... Aggregate demand represents the sum of consumption (C), investment spending (I), government spending (G), and net exports (X-IM or NX) The quantity of goods and services demanded at any given price level is aggregate ...
Lecture 8
... At a peak, the economy is at full employment and level of real output is at or close to economy’s full capacity. The price level is more likely to rise during this period. ...
... At a peak, the economy is at full employment and level of real output is at or close to economy’s full capacity. The price level is more likely to rise during this period. ...
Economic Systems Unit Planx
... 2. Trade-offs are all the alternatives that we give up whenever we choose one course of action over another. Thinking at the margin is when you decide how much more or less to do. ...
... 2. Trade-offs are all the alternatives that we give up whenever we choose one course of action over another. Thinking at the margin is when you decide how much more or less to do. ...
