Chapter 9 - Building the Aggregate Expenditures Model
... 2. Development of expectations by business that business taxes will be higher in the future 3. Step-up in the rates at which new products and production processes are being introduced 4. Business belief that wages may be lower in the future 5. A mild recession 6. A belief that business is “too good” ...
... 2. Development of expectations by business that business taxes will be higher in the future 3. Step-up in the rates at which new products and production processes are being introduced 4. Business belief that wages may be lower in the future 5. A mild recession 6. A belief that business is “too good” ...
Chapter 27: Aggregate Demand in the Goods and Money
... Both expansionary fiscal policy and expansionary monetary policy. d. None of the above. No policy mix favors investment over government spending. ...
... Both expansionary fiscal policy and expansionary monetary policy. d. None of the above. No policy mix favors investment over government spending. ...
THE MULTIPLIER EFFECT A FORMULA FOR THE SPENDING
... more of their wealth in liquid form. That is, the increase in income caused by the fiscal expansion raises the demand for money. The effect of the increase in money demand is shown in panel (a) of Figure 32-5. Because the Fed has not changed the money supply, the vertical supply curve remains the sa ...
... more of their wealth in liquid form. That is, the increase in income caused by the fiscal expansion raises the demand for money. The effect of the increase in money demand is shown in panel (a) of Figure 32-5. Because the Fed has not changed the money supply, the vertical supply curve remains the sa ...
Land Prices and Unemployment
... channel is similar to the standard financial multiplier; it embodies the dynamic interactions between the collateral value and the value of a new employment match. A decline in housing demand lowers the equilibrium land price and thus the collateral value of land. As the borrowing capacity for the c ...
... channel is similar to the standard financial multiplier; it embodies the dynamic interactions between the collateral value and the value of a new employment match. A decline in housing demand lowers the equilibrium land price and thus the collateral value of land. As the borrowing capacity for the c ...
Real GDP per capita since 1870
... series between 1940 and 1950 which is likely related to the change in measuring units and procedures. Before 1940, the GDP estimates are based on data not fully relevant to the canonical definition of Gross Domestic Product as introduced and developed in the 1930s and 1940s. Therefore, the correspon ...
... series between 1940 and 1950 which is likely related to the change in measuring units and procedures. Before 1940, the GDP estimates are based on data not fully relevant to the canonical definition of Gross Domestic Product as introduced and developed in the 1930s and 1940s. Therefore, the correspon ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2007, Volume 22
... is more likely to enhance growth to identify is lower. Empirically, we wish of budgetary ...
... is more likely to enhance growth to identify is lower. Empirically, we wish of budgetary ...
C ARE CREDIT BOOMS IN EMERGING MARKETS A CONCERN? CHAPTER IV
... As economies grow and develop, so do financial markets and institutions. But which way does causality go? In principle, it could be both ways. As the economy grows and becomes more complex, a demand for various financial services emerges, and the financial sector may simply develop to fulfill that d ...
... As economies grow and develop, so do financial markets and institutions. But which way does causality go? In principle, it could be both ways. As the economy grows and becomes more complex, a demand for various financial services emerges, and the financial sector may simply develop to fulfill that d ...
The Relation between State Aid and Economic Development in the
... In relative terms, the overall level of state aid in the 1980s was that of 2% of GDP, fell below 1% in the 1990s and in 2008 it stood at around 0,5%-0,6%. This decline can be explained in part by the work that began in the mid 1980s to make effective state aid control a main component of the Single ...
... In relative terms, the overall level of state aid in the 1980s was that of 2% of GDP, fell below 1% in the 1990s and in 2008 it stood at around 0,5%-0,6%. This decline can be explained in part by the work that began in the mid 1980s to make effective state aid control a main component of the Single ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... on market-related returns to human capital because we do not yet have internationally standardized valuations of nonmarket activities. The most extensively documented feature of embodied human capital is the relationship between education and wages. Studies of earnings in advanced capitalist economi ...
... on market-related returns to human capital because we do not yet have internationally standardized valuations of nonmarket activities. The most extensively documented feature of embodied human capital is the relationship between education and wages. Studies of earnings in advanced capitalist economi ...
7. Demand-pull inflation
... and timid investors. Inflation leads to distortions in relative prices, tax rates, and real interest rates. People take more trips to the bank, taxes may creep up, and measured income may become distorted. And when central banks take steps to lower inflation, the real costs of such steps in terms of ...
... and timid investors. Inflation leads to distortions in relative prices, tax rates, and real interest rates. People take more trips to the bank, taxes may creep up, and measured income may become distorted. And when central banks take steps to lower inflation, the real costs of such steps in terms of ...
NBER WORKING PAPER SERIES IRREVERSIBILITY, UNCERTAINTY, AND CYCLICAL INVESTMENT Working Paper No. 502
... cycle. . . is mainly due to the way in which the marginal efficiency of capital fluctuates... (T)he marginal efficiency of capital depends, not only on the existing abundance or scarcity of capital—goods and the current cost of production of capital—goods, but also on current expectations as to the ...
... cycle. . . is mainly due to the way in which the marginal efficiency of capital fluctuates... (T)he marginal efficiency of capital depends, not only on the existing abundance or scarcity of capital—goods and the current cost of production of capital—goods, but also on current expectations as to the ...
PAPER SERIES CURRENT MID ANTICIPATED DEFICITS, INTEREST RATES AND ECONOMIC ACTIVITY
... deficits are large and anticipated deficits much larger, there is widespread concern that they may slow or even prevent a complete recovery. The perception that deficits may hurt rather than help the recovery is clearly at odds with the traditional view that deficits, although they will in general i ...
... deficits are large and anticipated deficits much larger, there is widespread concern that they may slow or even prevent a complete recovery. The perception that deficits may hurt rather than help the recovery is clearly at odds with the traditional view that deficits, although they will in general i ...
How to interpret the forward rate in the foreign exchange market
... processes might not hold in an open economy which gives some support to liquidity preference theory and the structuralist view of economic and financial processes. Second, based on Kregel’s argument that Keynes’ writing on the forward foreign exchange market was indeed an early development of his li ...
... processes might not hold in an open economy which gives some support to liquidity preference theory and the structuralist view of economic and financial processes. Second, based on Kregel’s argument that Keynes’ writing on the forward foreign exchange market was indeed an early development of his li ...
Fiscal Multiplier in a Liquidity Constrained New Keynesian Economy∗
... liquidity by increasing the proportion of liquid assets in households’wealth, which in turn allows credit constrained entrepreneurs to increase their investment. Increased economic activity then increases private consumption. Second, an increase in government spending creates real aggregate demand w ...
... liquidity by increasing the proportion of liquid assets in households’wealth, which in turn allows credit constrained entrepreneurs to increase their investment. Increased economic activity then increases private consumption. Second, an increase in government spending creates real aggregate demand w ...
A Growth Path towards Full Employment
... need for the working class to sharpen its tactics in the deployment of its forces by becoming more concrete about the sites of resistance and platforms of engagement. Working class hegemony in the democratic movement alone was no longer sufficient, but hegemony over the levers of state power became ...
... need for the working class to sharpen its tactics in the deployment of its forces by becoming more concrete about the sites of resistance and platforms of engagement. Working class hegemony in the democratic movement alone was no longer sufficient, but hegemony over the levers of state power became ...
Review Questions and Answers for Chapter 11
... expenditures curve shifts upward and the equilibrium real GDP increases, but as the price level rises, the aggregate expenditures curve shifts downward and the equilibrium real GDP decreases. The inverse relationship between the price level and equilibrium real GDP is the aggregate demand curve. Not ...
... expenditures curve shifts upward and the equilibrium real GDP increases, but as the price level rises, the aggregate expenditures curve shifts downward and the equilibrium real GDP decreases. The inverse relationship between the price level and equilibrium real GDP is the aggregate demand curve. Not ...
Fiscal Policy
... The Public Sector forms the 3rd macroeconomic sector in the circular flow of income. The macroeconomy is no longer a private macroeconomy but a public one. The public sector is made up of all levels of government (federal, state and local) and government institutions and enterprises. They have a sig ...
... The Public Sector forms the 3rd macroeconomic sector in the circular flow of income. The macroeconomy is no longer a private macroeconomy but a public one. The public sector is made up of all levels of government (federal, state and local) and government institutions and enterprises. They have a sig ...
