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Understanding the Great Recession ! Lawrence J. Christiano Martin S. Eichenbaum
Understanding the Great Recession ! Lawrence J. Christiano Martin S. Eichenbaum

... Our last Önding is perhaps surprising in light of arguments by Hall (2011) and others that New Keynesian (NK) models imply ináation should have been much lower than it was during the Great Recession.3 Del Negro et al. (2014) argue that Hallís conclusions do not hold if the Phillips curve is su¢cient ...
Demographics and Real Interest Rates
Demographics and Real Interest Rates

... Since the Global Financial Crisis (GFC), real interest rates in many developed economies have been in negative territory, as nominal interest rates have hovered around zero and inflation rates, although quite low for historical standards, have remained positive and roughly stable (in most countries, ...
Economic Outlook
Economic Outlook

... BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT. All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provide ...
The Role of Expectations in the FRB/US Macroeconomic Model
The Role of Expectations in the FRB/US Macroeconomic Model

... debate that has engaged macroeconomists for the past twenty-five years. ...
DOES HIGH INFLATION AFFECT GROWTH IN THE LONG
DOES HIGH INFLATION AFFECT GROWTH IN THE LONG

EC201 Intermediate Macroeconomics - ORB
EC201 Intermediate Macroeconomics - ORB

... Feedback in this module takes the following form: an overall mark will be given to you for the midterm test and for your assignment. The complete solution of the midterm test and the assignment will be posted in the CMR. As well as these formal feedback methods, more informal feedback can be gained ...
File - GNN Stock Market Game Club
File - GNN Stock Market Game Club

... • Goal: To create an environment in which workers and owners of capital have the maximum incentive and ability to produce and develop goods. • Supply-siders focus on how tax policy can be used to improve incentives to work and invest. INVESTMENTS | BODIE, KANE, MARCUS ...
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fgfdgfd

... expanding rapidly without completely been met by the increase in the revenue generated. As a result, Nigeria periodically faces fiscal imbalances and her fiscal deficits have been increasing since 1975 (CBN, 2010). Fiscal deficits have become an important issue in the area of public finance when con ...
Introduction to Macroeconomics TOPIC 4: The IS-LM Model
Introduction to Macroeconomics TOPIC 4: The IS-LM Model

... Now lets talk in real terms (because we want an analysis in terms of goods) ...
Monetary and Fiscal Policy Interact
Monetary and Fiscal Policy Interact

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The duration of economic expansions and recessions: More than

... potential determinants of the duration of the business cycle phases. Other factors, not considered in the composite leading indicator, will be taken into account as well. For example, the idea advanced by Zellner (1990) that the length of the previous phase can have a significant impact on the durat ...
If, When, How: A Primer on Fiscal Stimulus
If, When, How: A Primer on Fiscal Stimulus

... eductions in taxes and increases in government expenditures can boost household and business spending during economic downturns, thereby keeping national output, income, and employment at a higher level. The idea of using fiscal policy to reduce the magnitude of economic fluctuations dates back at l ...
1997. Paradigms of Development: The East Asian Debate. Oxford
1997. Paradigms of Development: The East Asian Debate. Oxford

... peoples and raised many theories and debates about it. We can divide them into two categories according to which mechanism they stress, namely the state or market. The neo-classical arguments emphasize free market operations that are not distorted by state intervention as a key of economic success. ...
A small model of the UK economy - Office for Budget Responsibility
A small model of the UK economy - Office for Budget Responsibility

... model used by the Office for Budget Responsibility, that is primarily concerned with forecasting.1 These models are not usually derived from microeconomic foundations and rely more heavily upon a good fit with the data. It is widely known that such models are vulnerable to the Lucas critique because ...
review of the literature
review of the literature

... of technological change, which is assumed to be exogenous. - economic policy changes will only have a temporary effect on economic activity - convergence of per capita output across countries with a similar productivity level, savings rate, depreciation rate, productivity growth and population growt ...
Aggregate expenditures
Aggregate expenditures

... 1. Explain and illustrate the aggregate expenditures model and the concept of equilibrium real GDP. 2. Distinguish between autonomous and induced aggregate expenditures and explain why a change in autonomous expenditures leads to a multiplied change in equilibrium real GDP. 3. Discuss how adding tax ...
Chapter 15
Chapter 15

... and value of the capital stock (net investment) and sustainable increases in real GDP (capacity output) – For example, ratio of 4 means for every $4 of net investment in year 1 the economy is capable of producing $1 of additional output in year 2 and succeeding years ...
Franz Seitz - OTH Amberg
Franz Seitz - OTH Amberg

... asymmetric effects. Otherwise monetary shocks have no real effects at all. In trying to identify asymmetric effects it is necessary to specify a central bank reaction function to assess the stance of monetary policy. Many of the above mentioned papers identify this stance using monetary aggregates a ...
Fiscal Policy
Fiscal Policy

... Without an expansionary policy, aggregate demand will shift from AD1 to AD2(without policy), which is not enough to keep the economy at potential GDP because long-run aggregate supply has shifted from LRAS1 to LRAS2. The economy will be in short-run equilibrium at point B. Increasing government purc ...
Money, inflation and interest rates
Money, inflation and interest rates

... rate is affected by money supply. In particular whenever there is an increase in money revenues. The agents who get taxed by inflation are the one who hold money and the tax rate on their money is 10exactly the inflation rate. To see this suppose I have 1000 dollar in my bank account and that the pri ...
Institutions and Economic Development
Institutions and Economic Development

agricultural economics
agricultural economics

... undergo. It includes objectives & learning outcomes, course contents, scheme of studies, teaching methodologies and methods of assessment of learning. Since knowledge in all disciplines and fields is expanding at a fast pace and new disciplines are also emerging; it is imperative that curricula be d ...
The Impact of the Recession on Northern City-Regions
The Impact of the Recession on Northern City-Regions

PL 1 - Alvinisd.net
PL 1 - Alvinisd.net

... SHORT AND LONG RUN PHILLIPS CURVES • In the years following Phillips' 1958 paper, many economists in the advanced industrial countries believed that his results showed that there was a permanently stable relationship between inflation and unemployment. • One implication of this for government policy ...
Recession Severity Int Journal of Health Care Finance and Economy
Recession Severity Int Journal of Health Care Finance and Economy

... Farag et al. (2012) find health care least responsive to income change in low-income countries, more so in high-income countries, with the highest response in middle-income countries. More recent empirical work has looked at the response of public health spending to economic cycles. For example, Dar ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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