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... The same pattern applies to the Source: Ifo World Economic Survey (WES) II/2012. euro area (see Box 2). The indicaThe Ifo World Economic Climate is the arithmetic mean of the assessments of the current tor for the euro area moved up to situation and economic expectations for the next six months. The ...
Business Cycles, Unemployment, & Inflation
Business Cycles, Unemployment, & Inflation

... 4. The unemployment rate is affected by the business cycle. The unemployment rate generally falls when the growth rate of real GDP is above average and generally increases when the growth rate of real GDP is below average. 5. Job creation and destruction, as well as voluntary job separations, lead t ...
Interest Rate Rules and Equilibrium Stability
Interest Rate Rules and Equilibrium Stability

Fiscal consolidation as a self-fulfilling prophecy on fiscal multipliers
Fiscal consolidation as a self-fulfilling prophecy on fiscal multipliers

... By using a simple model of liquidity trap developed by Krugman (1998) this work confirms that delaying consolidation until the multiplier is reduced is comparably more beneficial for the economy. It further amplifies this result by claiming that fiscal policy may lengthen the elevated fiscal multip ...
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights
Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights

Week 9 Practice Quiz f Answers
Week 9 Practice Quiz f Answers

... place after the economy gets to its short run equilibrium. Which of the following statements is unambiguously true? For this problem, circle only one of the following answers. This comes directly from last week’s lecture. Both via self correcting mechanism and Fed stabilization policy, there is perf ...
The Journal of Economic Education Consensus Among Economists
The Journal of Economic Education Consensus Among Economists

Can Sweden Afford Another High Equity Premium?
Can Sweden Afford Another High Equity Premium?

... The novel contribution of this paper is that I calculate the empirical equity premium in Sweden at approximately 8%, and from this estimate my analysis of Swedish historical data from 1919 to 2006 suggest rare disaster probabilities of 1.05% for a 50% contraction in real GDP and similarly 13.73% for ...
Unemployment Fichier
Unemployment Fichier

The Determinants of Labour Demand in the Lubelskie Voivodship
The Determinants of Labour Demand in the Lubelskie Voivodship

Chapter 22 - Samuel Moon Jung
Chapter 22 - Samuel Moon Jung

... B) final goods and services offered for sale at the current inflation rate. C) final goods and services offered for sale at different inflation rates. D) intermediate and final goods and service offered for sale at different inflation rates. Answer: C Ques Status: Revised AACSB: Reflective thinking ...
Wage led
Wage led

... An error of composition • While a country may be under a profit-led demand regime when looking at the total effect of an increase in the wage share, a simultaneous increase in the wage share of all countries may still have a positive effect on the aggregate demand of a profit-led country if its dom ...
Unit 3 Practice Test with Key
Unit 3 Practice Test with Key

... A. decreases government transfers and consumption; right B. increases disposable income and consumption; right C. decreases the marginal propensity to save and consumption; left D. increases corporate profits and investment; left E. increases disposable income and investment; left ____ 16. The short ...
Helicopter Money - Global Interdependence Center
Helicopter Money - Global Interdependence Center

dasgupta
dasgupta

... of exploitation, colonization, armed conflicts and attempts to encourage the adoption of a Western lifestyle in order to stimulate the demand for foreign goods. Gandhi also developed a set of moral arguments against industrialization and large-scale production. Dasgupta does not do justice to Gandh ...
WHY THE FEDERAL RESERVE SHOULD ADOPT INFLATION TARGETING
WHY THE FEDERAL RESERVE SHOULD ADOPT INFLATION TARGETING

... Reserve has not articulated an explicit strategy, a coherent strategy for the conduct of monetary policy exists nonetheless. This strategy involves an implicit, but not an explicit nominal anchor in the form of an overriding concern by the Federal Reserve to control inflation in the long run. In add ...
Shadow Economy in Mediterranean Countries
Shadow Economy in Mediterranean Countries

... a very important loss in public revenues, misleading official indicators (growth, income distribution etc…), changes in individual incentives and factors remuneration etc. That is the reason why interest in shadow economy, both from an academic and a political point of view, has grown exponentially ...
AEM724 - National Open University of Nigeria
AEM724 - National Open University of Nigeria

... in price and why they demand what they do at particular price levels. Macroeconomics is concerned with the aggregate, or overall, economy. Macroeconomics deals with economic factors such as total national output and income, unemployment, balance of payments, and the rate of inflation. It is distinct ...
Productivity Slowdown Puzzle
Productivity Slowdown Puzzle

AGGREGATE DEMAND, INSTABILITY, AND GROWTH*
AGGREGATE DEMAND, INSTABILITY, AND GROWTH*

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... d. The amount you pay your doctor for health care in 1998. ANSWER: a 26. Which of the following is included in GDP? a. the illegal sale of marijuana. b. the money you pay to your baby-sitter that is not reported as income when she files her tax. c. the money you pay a maid to clean your home. d. the ...
Macroeconomic Fluctuations Under Natural Disaster Shocks in
Macroeconomic Fluctuations Under Natural Disaster Shocks in

... hurricanes in the Caribbean basin. He found that the disaster shock reduces growth by 0.8 percentage points. However, the Strobl results could be overestimating the effects of hurricanes on output because of the interaction between rare shocks and macroeconomic quantities. Recently, Acevedo (2014) h ...
Macroeconomic Policy Coordination in a Competitive Real
Macroeconomic Policy Coordination in a Competitive Real

Chapter One
Chapter One

... 3. Define economics and describe two types of economic systems: capitalism and command economy 4. Identify the ways to measure economic performance 5. Outline the four types of competition 6. Summarize the factors that affect the business environment and the challenges that American businesses will ...
NBER WORKING PAPER SERIES EMPIRICAL ANALYSIS OF POLICY INTERVENTIONS Eric M. Leeper
NBER WORKING PAPER SERIES EMPIRICAL ANALYSIS OF POLICY INTERVENTIONS Eric M. Leeper

... depends on both the nature of the intervention and the elasticities of private behavior with respect to policy. The efficacy of our approach hinges on whether it can be applied without implying policy choices that would force the economy into a new policy regime. We offer some statistical guards ag ...
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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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