GD_2012_post
... Were shocks in the IS curve responsible? – Foreign trade, government spending and taxes were too small – No exogenous consumption shock – Investment decline was the major shock. • Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment, ...
... Were shocks in the IS curve responsible? – Foreign trade, government spending and taxes were too small – No exogenous consumption shock – Investment decline was the major shock. • Mechanism is unclear, but probably due to shift to “bad equilibrium” (panics, risk, high risk premiums, low investment, ...
AS Function
... IS: a graph of all combinations of Y and r that result in goods market equilibrium. Equilibrium in Goods Market Output (Y) = Aggregate Expenditure (E) Components of Aggregate Expenditure - Household Expenditure (C) - Firm Expenditure (I) - Government Expenditure (G) ...
... IS: a graph of all combinations of Y and r that result in goods market equilibrium. Equilibrium in Goods Market Output (Y) = Aggregate Expenditure (E) Components of Aggregate Expenditure - Household Expenditure (C) - Firm Expenditure (I) - Government Expenditure (G) ...
Clicker quiz: What happens when you are in a balance... payments deficit and you are tied to the gold standard?
... If they left their economies open, what would happen to Keynesian Macroeconomic policy? • Open international economy requires trade to balance so that states pay for what they buy from others and get paid for what they sell. So…… • ↑imports +↓exports trade deficit need to pay up no credit? ...
... If they left their economies open, what would happen to Keynesian Macroeconomic policy? • Open international economy requires trade to balance so that states pay for what they buy from others and get paid for what they sell. So…… • ↑imports +↓exports trade deficit need to pay up no credit? ...
ECONOMICS 100:15
... Between 1928 and 1933 the Canadian economy went from a situation of good economic conditions into the most severe recession in the nation’s history. Prices fell, real GDP declined sharply and unemployment reached 20%. Difficult conditions persisted throughout the 1930’s and full employment was resto ...
... Between 1928 and 1933 the Canadian economy went from a situation of good economic conditions into the most severe recession in the nation’s history. Prices fell, real GDP declined sharply and unemployment reached 20%. Difficult conditions persisted throughout the 1930’s and full employment was resto ...
3 Macroeconomics Sample Long Free-Response Questions SAMPLE QUESTIONS
... 1. Assume you are a member of Congress. A member of your staff has just given you the following economic statistics: ...
... 1. Assume you are a member of Congress. A member of your staff has just given you the following economic statistics: ...
The Austrian School
... • start fresh with capital better allocated In 1930s Austrian mechanism did not work because extreme risk aversion kept the market rate above the natural rate even after liquidation Roosevelt, by putting banking system on sound footing through guaranteeing bank deposits – liquidity situation improve ...
... • start fresh with capital better allocated In 1930s Austrian mechanism did not work because extreme risk aversion kept the market rate above the natural rate even after liquidation Roosevelt, by putting banking system on sound footing through guaranteeing bank deposits – liquidity situation improve ...
Unit 1 Needs and Wants
... makes all economic decisions • 2. Moderate – socialism – some private business – some government controlled ...
... makes all economic decisions • 2. Moderate – socialism – some private business – some government controlled ...
Talking Points Presentation - Federal Reserve Bank of St. Louis
... spending and/or increases in taxes, in theory are thought to decrease overall demand for goods and services. These actions move the budget position toward a surplus. Contractionary policies are rarely used. 4. If the government runs a deficit, it borrows to cover the deficit spending. This borrowing ...
... spending and/or increases in taxes, in theory are thought to decrease overall demand for goods and services. These actions move the budget position toward a surplus. Contractionary policies are rarely used. 4. If the government runs a deficit, it borrows to cover the deficit spending. This borrowing ...
Chapter 1: The Economic Way of Thinking Section 4: The Economist
... sector, the public or government sector—that part of the economy that provides public goods and services. • Macroeconomists bring a national or global perspective to their work. They study the monetary system, the ups and downs of the business cycles, and the impact of international trade and its ef ...
... sector, the public or government sector—that part of the economy that provides public goods and services. • Macroeconomists bring a national or global perspective to their work. They study the monetary system, the ups and downs of the business cycles, and the impact of international trade and its ef ...
Practice Midterm 2
... More material is on Macro than Micro. The exam will be multiple choice—bring a scantron. It will not cover material after monetary policy, which will be on the final exam. Questions: ...
... More material is on Macro than Micro. The exam will be multiple choice—bring a scantron. It will not cover material after monetary policy, which will be on the final exam. Questions: ...
E719_No02_Chapter01
... The economy works well on its own The “invisible hand”: the idea that if there are free markets and individuals conduct their economic affairs in their own best interests, the overall economy will work well Wages and prices adjust rapidly to get to equilibrium Result: Government should have on ...
... The economy works well on its own The “invisible hand”: the idea that if there are free markets and individuals conduct their economic affairs in their own best interests, the overall economy will work well Wages and prices adjust rapidly to get to equilibrium Result: Government should have on ...
Big Boom for Stocks
... were never the reason stocks rose. It’s true that low interest rates can push stock prices higher. Future earnings are worth more today when discounted with a lower interest rate than they are with a higher interest rate. Lower interest rates can justify higher price-to-earnings ratios. But, since 2 ...
... were never the reason stocks rose. It’s true that low interest rates can push stock prices higher. Future earnings are worth more today when discounted with a lower interest rate than they are with a higher interest rate. Lower interest rates can justify higher price-to-earnings ratios. But, since 2 ...
Name - Instructure
... In the short-run there is probably a tradeoff between unemployment and inflation. The government’s expansionary policy should reduce unemployment as aggregate demand increases. However, the government has misjudged the natural rate and will continue its expansionary policy beyond the point of the na ...
... In the short-run there is probably a tradeoff between unemployment and inflation. The government’s expansionary policy should reduce unemployment as aggregate demand increases. However, the government has misjudged the natural rate and will continue its expansionary policy beyond the point of the na ...
Production Possibilities Curve – An economic model that shows the
... Production Possibilities Curve – An economic model that shows the maximum combination of goods and services that can be produced with a fixed (scarce) amount of resources (C.E.L.L.). ...
... Production Possibilities Curve – An economic model that shows the maximum combination of goods and services that can be produced with a fixed (scarce) amount of resources (C.E.L.L.). ...
Lecture No. 3: AGREGATE DEMAND
... 3. THE MULTIPLIER MODEL • How output is determined in the short run? • How changes in spending (AD) get translated into changes in output and employment? ∆ GDP = m * ∆ AD ...
... 3. THE MULTIPLIER MODEL • How output is determined in the short run? • How changes in spending (AD) get translated into changes in output and employment? ∆ GDP = m * ∆ AD ...
The US Economy 1. How do economists define real gross domestic
... c. the value of all final goods and services produced over the course of a specified number of years d. the value of all capital goods and service produced during a single year adjusted for inflation 2. The economy tends to grow over time, but it does not grow at a constant rate. Which term describe ...
... c. the value of all final goods and services produced over the course of a specified number of years d. the value of all capital goods and service produced during a single year adjusted for inflation 2. The economy tends to grow over time, but it does not grow at a constant rate. Which term describe ...