short-run economic fluctuations
... • Economic activity fluctuates from year to year. – Real GDP increases in most years. – On average over the past 50 years, real GDP in the U.S. economy has grown by about 3 percent per year. – In some years normal growth does not occur, causing a recession. ...
... • Economic activity fluctuates from year to year. – Real GDP increases in most years. – On average over the past 50 years, real GDP in the U.S. economy has grown by about 3 percent per year. – In some years normal growth does not occur, causing a recession. ...
Word Document
... Say’s Law – total supply of goods and services will equal total demand derived from consumption; a general glut (economy-wide over-supply) is impossible money illusion – nominal vs. real confusion (wages or prices) crowding out – fiscal policy is ineffective because a rise in government spendi ...
... Say’s Law – total supply of goods and services will equal total demand derived from consumption; a general glut (economy-wide over-supply) is impossible money illusion – nominal vs. real confusion (wages or prices) crowding out – fiscal policy is ineffective because a rise in government spendi ...
Business Cycles
... Four Phases of the Business Cycle If a contraction is long and deep enough, it can develop into a recession, two consecutive quarters of no growth, or negative growth in Real GDP. A Recession can develop into a depression, characterized by extremely high unemployment and many business failures. ...
... Four Phases of the Business Cycle If a contraction is long and deep enough, it can develop into a recession, two consecutive quarters of no growth, or negative growth in Real GDP. A Recession can develop into a depression, characterized by extremely high unemployment and many business failures. ...
Timescale interactions in economy: Application to climate change
... – Increase in labor costs when employment is high – Constraints in production and inflation in goods prices when demand increases too rapidly – Financial constraints on investment • A small additional instability arises from the interaction of labor market and goods inventory (oscillations with a 30 ...
... – Increase in labor costs when employment is high – Constraints in production and inflation in goods prices when demand increases too rapidly – Financial constraints on investment • A small additional instability arises from the interaction of labor market and goods inventory (oscillations with a 30 ...
EC 230 Macroeconomics - College of Micronesia
... Course prepared by: Charles Musana, Division of Business Administration ...
... Course prepared by: Charles Musana, Division of Business Administration ...
Macroeconomic Conflict and Consensus
... Keynes believed macroeconomic policy could be used to maintain full employment in the long run One implication of the natural rate hypothesis is that inflation will continue even in times of high unemployment Stability, not low level, should be the goal ...
... Keynes believed macroeconomic policy could be used to maintain full employment in the long run One implication of the natural rate hypothesis is that inflation will continue even in times of high unemployment Stability, not low level, should be the goal ...
New Methods and Business Organizations 6th
... The size of the corporations does not mean large profits. Sometimes producing more products than they could sell. ...
... The size of the corporations does not mean large profits. Sometimes producing more products than they could sell. ...
Aim: ECONOMIC POLICY
... • “too much money chasing too few goods” • Stable – growth in money supply = to growth of economy’s productivity • Curb inflation • Federal Reserve • Tools – reserve requirements, OMOs, discount rates ...
... • “too much money chasing too few goods” • Stable – growth in money supply = to growth of economy’s productivity • Curb inflation • Federal Reserve • Tools – reserve requirements, OMOs, discount rates ...
economic policymaking
... • Argument is that a tax cut increases total employment so much that the government actually collects more in taxes at the new, lower rate. • Fiscal Policy History: ...
... • Argument is that a tax cut increases total employment so much that the government actually collects more in taxes at the new, lower rate. • Fiscal Policy History: ...
Macroeconomics Pt.3: Economic Instability A) Business Cycles and
... Large Economic growth is something that is beneficial to everyone. However, lower or decreases in Economic growth is also a matter of concern. When this happens, businesses lose sales, voters become unhappy, investors get nervous and even the stock market shows its disapproval. Because of this, Econ ...
... Large Economic growth is something that is beneficial to everyone. However, lower or decreases in Economic growth is also a matter of concern. When this happens, businesses lose sales, voters become unhappy, investors get nervous and even the stock market shows its disapproval. Because of this, Econ ...
Modern neoclassical economics
... theory – imperfect information (E. Phelps) Basic question? – what will happen ...
... theory – imperfect information (E. Phelps) Basic question? – what will happen ...
Expansionary and Contractionary Fiscal Policy AG 23.03
... money supply to encourage economic growth or combat inflation. One form of expansionary policy is fiscal policy, which comes in the form of tax cuts, rebates and increased government spending. Expansionary policies can also come from central banks, which focus on increasing the money supply in the e ...
... money supply to encourage economic growth or combat inflation. One form of expansionary policy is fiscal policy, which comes in the form of tax cuts, rebates and increased government spending. Expansionary policies can also come from central banks, which focus on increasing the money supply in the e ...
AS 3.5 Demonstrate understanding of macro
... • Some calculations you may need to make in this A.S – Rate of growth – Rate of inflation – Terms of Trade – Operating Balance – Balance of Payments • current account balance ...
... • Some calculations you may need to make in this A.S – Rate of growth – Rate of inflation – Terms of Trade – Operating Balance – Balance of Payments • current account balance ...
Keynesian Model
... believed that governments could be their own worst enemies when it came to the economy. With laissez-faire (hands-off) government policies the economy would better achieve the goals of price stability, full employment, and economic growth. Classical economic theory was not much help in the 1930s as ...
... believed that governments could be their own worst enemies when it came to the economy. With laissez-faire (hands-off) government policies the economy would better achieve the goals of price stability, full employment, and economic growth. Classical economic theory was not much help in the 1930s as ...
Study Guide 1
... Frictional unemployment Seasonal unemployment Cyclical (demand-deficient) unemployment Real wage unemployment Deflation Demand-pull inflation Cost-push inflation Excess monetary growth Phillips Curve Long-run Phillips Curve (LRPC) Natural Rate of Unemployment (NRU) Price index ...
... Frictional unemployment Seasonal unemployment Cyclical (demand-deficient) unemployment Real wage unemployment Deflation Demand-pull inflation Cost-push inflation Excess monetary growth Phillips Curve Long-run Phillips Curve (LRPC) Natural Rate of Unemployment (NRU) Price index ...
Lesson 2 Activities - Teaching Financial Crises
... What happened? During this period, there was economic stagnation in much of the Western world, putting an end to the general post-World War II economic boom. It differed from many previous recessions—it was characterized by a stagnant economy (causing high unemployment) and coincided with high infla ...
... What happened? During this period, there was economic stagnation in much of the Western world, putting an end to the general post-World War II economic boom. It differed from many previous recessions—it was characterized by a stagnant economy (causing high unemployment) and coincided with high infla ...