Permanent vs transitory components and economic fundamentals
... in turn, provides the basis for a range of alternative multivariate techniques.4 We do argue however that B–N trends have been unduly neglected, for which there are probably two explanations. The first arises from the (incorrect) perception that B–N trends are of necessity ‘too volatile’.5 The secon ...
... in turn, provides the basis for a range of alternative multivariate techniques.4 We do argue however that B–N trends have been unduly neglected, for which there are probably two explanations. The first arises from the (incorrect) perception that B–N trends are of necessity ‘too volatile’.5 The secon ...
Chapter 7 Aggregate Demand, Aggregate Supply, and the Self
... D) inability of an increase in real balances to raise the level of output. 57) The Pigou effect refers to the fact that autonomous expenditures may depend on A) interest rates and variations in the perceived value of money balances. B) the real money supply and variations in the perceived value of m ...
... D) inability of an increase in real balances to raise the level of output. 57) The Pigou effect refers to the fact that autonomous expenditures may depend on A) interest rates and variations in the perceived value of money balances. B) the real money supply and variations in the perceived value of m ...
increase
... b. Income in the U.S. would be redistributed from the rich to the poor. c. The U.S. standard of living would increase. d. The United States economy would become less efficient. 6. (*58%) Mary Jane is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can ...
... b. Income in the U.S. would be redistributed from the rich to the poor. c. The U.S. standard of living would increase. d. The United States economy would become less efficient. 6. (*58%) Mary Jane is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can ...
Video Clip 1 "Swedish Economic System"
... than the fall in ticket price and revenues will rise. If demand is not responsive enough, the quantity demanded may not increase enough to offset the fall in ticket prices, and revenues will fall. The easiest example of the latter would occur if demand were “perfectly inelastic,” which implies that ...
... than the fall in ticket price and revenues will rise. If demand is not responsive enough, the quantity demanded may not increase enough to offset the fall in ticket prices, and revenues will fall. The easiest example of the latter would occur if demand were “perfectly inelastic,” which implies that ...
Principles of Macroeconomics Self-study quiz and Exercises with
... were independent of the interest rate. Answer: D 22) If planned investment decreases as the interest rate increases, the absolute value of the tax multiplier will be A) the same as the absolute value of the tax multiplier that would result if planned investment were independent of the interest rate. ...
... were independent of the interest rate. Answer: D 22) If planned investment decreases as the interest rate increases, the absolute value of the tax multiplier will be A) the same as the absolute value of the tax multiplier that would result if planned investment were independent of the interest rate. ...
In this chapter, look for the answers to these questions
... “Animal spirits” cause waves of pessimism and optimism among households and firms, leading to shifts in aggregate demand and fluctuations in output and employment. The government should actively stimulate aggregate demand when aggregate demand appeared insufficient to maintain production at its full ...
... “Animal spirits” cause waves of pessimism and optimism among households and firms, leading to shifts in aggregate demand and fluctuations in output and employment. The government should actively stimulate aggregate demand when aggregate demand appeared insufficient to maintain production at its full ...
Fiscal Divergence and Business Cycle Synchronization
... paper): Industrial Production (IP) is available at annual, quarterly and monthly frequency • Calculate CC using three frequencies • CC based on annual frequency, in principle, should have much larger variance than the other two it should show up in results ...
... paper): Industrial Production (IP) is available at annual, quarterly and monthly frequency • Calculate CC using three frequencies • CC based on annual frequency, in principle, should have much larger variance than the other two it should show up in results ...
The Theory of Relative-Price Changes, Money, and Demand Factors
... remedies. Although researchers point to various causes, the debate can be basically characterised as one over supply- versus demand-side factors. Some argue that this disinflation/deflation is mainly a supply-side phenomenon, as it was caused by such factors as lower energy prices or the influx of i ...
... remedies. Although researchers point to various causes, the debate can be basically characterised as one over supply- versus demand-side factors. Some argue that this disinflation/deflation is mainly a supply-side phenomenon, as it was caused by such factors as lower energy prices or the influx of i ...
Economic Policy Uncertainty Spillovers in Booms and Busts!
... the macroeconomic impact of policy-related nucertainty shocks have mainly focused on the U.S. taken in isolation. Working with a VAR model, Benati (2013) shows that economic policy uncertainty to be able to explain a fraction of the 1-year ahead forecast error variance of the U.S. industrial produc ...
... the macroeconomic impact of policy-related nucertainty shocks have mainly focused on the U.S. taken in isolation. Working with a VAR model, Benati (2013) shows that economic policy uncertainty to be able to explain a fraction of the 1-year ahead forecast error variance of the U.S. industrial produc ...
NBER WORKING PAPER SERIES CREDIT SPREADS AND MONETARY POLICY Vasco Cúrdia Michael Woodford
... statistics did not yet indicate that real GDP was declining, and according to many indicators inflation was if anything increasing; a simple “Taylor rule” (Taylor, 1993) for monetary policy would thus not seem to have provided any ground for the Fed’s actions at the time. Obviously, they were paying ...
... statistics did not yet indicate that real GDP was declining, and according to many indicators inflation was if anything increasing; a simple “Taylor rule” (Taylor, 1993) for monetary policy would thus not seem to have provided any ground for the Fed’s actions at the time. Obviously, they were paying ...
NBER WORKING PAPER SERIES Alejandro Justiniano
... itself in the form of markups of goods prices over nominal marginal cost and of real wages over the marginal rate of substitution between consumption and leisure. These markups vary over time due to exogenous movements in market competitiveness, and to the stickiness of prices and wages. We summariz ...
... itself in the form of markups of goods prices over nominal marginal cost and of real wages over the marginal rate of substitution between consumption and leisure. These markups vary over time due to exogenous movements in market competitiveness, and to the stickiness of prices and wages. We summariz ...
Peacekeeping Economies
... via foreign aid (Rajan and Subramanian, 2011), oil windfalls (Caselli and Michaels, 2013), or remittances (Lartey, Mandelman, and Acosta, 2008) leads to demand for non-tradable products and an expansion of the service sector. Although our analysis shows that peacekeeping missions can have positive e ...
... via foreign aid (Rajan and Subramanian, 2011), oil windfalls (Caselli and Michaels, 2013), or remittances (Lartey, Mandelman, and Acosta, 2008) leads to demand for non-tradable products and an expansion of the service sector. Although our analysis shows that peacekeeping missions can have positive e ...
Document
... M is the quantity of money in the economy V is the velocity of money, or the average number of times per year each dollar is used to purchase final goods and services P is the price level Y is real national output, or real GDP Thus, the quantity of money in circulation multiplied by the number of ti ...
... M is the quantity of money in the economy V is the velocity of money, or the average number of times per year each dollar is used to purchase final goods and services P is the price level Y is real national output, or real GDP Thus, the quantity of money in circulation multiplied by the number of ti ...
What does the Bank of Japan do to East Asia?
... Japan. Thick lines are medians and thin lines are 68% and 90% probability bands, computed from 1000 posterior draws. Japan’s real GDP is estimated to increase slowly, reaching a maximum about 8 quarters after the monetary easing begins, and then returning to zero consistent with long-run neutrality ...
... Japan. Thick lines are medians and thin lines are 68% and 90% probability bands, computed from 1000 posterior draws. Japan’s real GDP is estimated to increase slowly, reaching a maximum about 8 quarters after the monetary easing begins, and then returning to zero consistent with long-run neutrality ...
No. 278 Distortionary Fiscal Policy and Monetary Policy Goals
... of policymakers has received much attention following the seminal work of Kydland and Prescott (1977) and Barro and Gordon (1983). In particular, to overcome the in‡ationary bias caused by discretionary conduct of monetary policy, Rogo¤ (1985) proposed appointing a conservative central banker, who d ...
... of policymakers has received much attention following the seminal work of Kydland and Prescott (1977) and Barro and Gordon (1983). In particular, to overcome the in‡ationary bias caused by discretionary conduct of monetary policy, Rogo¤ (1985) proposed appointing a conservative central banker, who d ...
The “Great Moderation” In OECD Countries: Its Deepness and Implications with Business Cycles
... that the series under analysis has a stochastic trend. This, in turn, implies that any shock – whether demand, supply, or policy-induced – to the variable will have effects on the variable into the very long run. Whilst this drawback does not seem to be relevant in our analysis since the stability o ...
... that the series under analysis has a stochastic trend. This, in turn, implies that any shock – whether demand, supply, or policy-induced – to the variable will have effects on the variable into the very long run. Whilst this drawback does not seem to be relevant in our analysis since the stability o ...
