NATIONAL OPEN UNIVERSITY OF NIGERIA MACROECONOMIC
... In distance learning the study units replace the university lecturer. This is one of the great advantages of distance learning; you can read and work through specially designed study materials at your own pace and at a time and place that suit you best. Think of it as reading the lecture instead of ...
... In distance learning the study units replace the university lecturer. This is one of the great advantages of distance learning; you can read and work through specially designed study materials at your own pace and at a time and place that suit you best. Think of it as reading the lecture instead of ...
INCOME INEQUALITY AND THE BUSINESS CYCLE
... distribution of wealth and find a significant relationship between inequality and inflation for the U.S. economy. Specifically, higher inflation leads to higher nominal interest rates and a higher real tax burden on interest income. An increase in inflation results in a lower stock market participa ...
... distribution of wealth and find a significant relationship between inequality and inflation for the U.S. economy. Specifically, higher inflation leads to higher nominal interest rates and a higher real tax burden on interest income. An increase in inflation results in a lower stock market participa ...
Mankiw 5/e Chapter 4: Money and Inflation
... For given values of r, Y, and e, a change in M causes P to change by the same percentage --- just like in the Quantity Theory of Money. ...
... For given values of r, Y, and e, a change in M causes P to change by the same percentage --- just like in the Quantity Theory of Money. ...
A Panel Approach for Developing Countries
... and quasi money comprise the sum of the money outside banks, demand deposits other than those of the central government, and the time, savings and foreign currency deposits of resident sectors other than the central government. The theory predicts a positive sign for the coefficient of this variable ...
... and quasi money comprise the sum of the money outside banks, demand deposits other than those of the central government, and the time, savings and foreign currency deposits of resident sectors other than the central government. The theory predicts a positive sign for the coefficient of this variable ...
Keyne`s General Theory: A Different Perspective
... strict sense is possible" (1936, pp. 16-17). The classical theory, according to Keynes's chapter 2, depends on three assumptions: (1) equality of the marginal disutility of employment and the real wage; (2) the absence of involuntary unemployment; and (3) the aggregate demand price and aggregate sup ...
... strict sense is possible" (1936, pp. 16-17). The classical theory, according to Keynes's chapter 2, depends on three assumptions: (1) equality of the marginal disutility of employment and the real wage; (2) the absence of involuntary unemployment; and (3) the aggregate demand price and aggregate sup ...
Chapter 7 Aggregate Demand, Aggregate Supply, and the Self
... 21) When the real wage falls, as a result of a rise in the price level A) the demand for labor will fall. B) the supply of labor will rise. C) firms will hire more labor as they move down the demand curve for labor. D) the nominal wage will fall. 22) If, other things constant, the actual real wage i ...
... 21) When the real wage falls, as a result of a rise in the price level A) the demand for labor will fall. B) the supply of labor will rise. C) firms will hire more labor as they move down the demand curve for labor. D) the nominal wage will fall. 22) If, other things constant, the actual real wage i ...
Why Does Employment in All Major Sectors Move Together over the
... of both the extensive and the intensive margins. In this paper I show that the correlations between the number of workers across different sectors are slightly higher than the correlations across sectoral hours per worker. Moreover, the variability of the number of workers in a sector is on average m ...
... of both the extensive and the intensive margins. In this paper I show that the correlations between the number of workers across different sectors are slightly higher than the correlations across sectoral hours per worker. Moreover, the variability of the number of workers in a sector is on average m ...
CHAP1.WP (Word5)
... additional workers only if the real wage rate declines. Thus, the labor demand curve is downward sloping. It also indicates that as the price level falls and the real wage rises, firms will employ fewer workers and thus produce less output (all other things being equal). As the price level rises, th ...
... additional workers only if the real wage rate declines. Thus, the labor demand curve is downward sloping. It also indicates that as the price level falls and the real wage rises, firms will employ fewer workers and thus produce less output (all other things being equal). As the price level rises, th ...
Mankiw 6e PowerPoints
... Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate. CHAPTER 4 ...
... Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate. CHAPTER 4 ...
NBER WORKING PAPER SERIES THE CONDUCT OF DOMESTIC ICY Robert J. Gordon
... in nominal GNP growth will be divided between inflation and real GNP growth. The results from the equation estimated through 1980 are used to examine the behavior of inflation during the 1981—82 recession, and to predict the behavior of inflation and unemployment that would accompany alternative pat ...
... in nominal GNP growth will be divided between inflation and real GNP growth. The results from the equation estimated through 1980 are used to examine the behavior of inflation during the 1981—82 recession, and to predict the behavior of inflation and unemployment that would accompany alternative pat ...
Inflation Targeting in South Africa: A VAR Analysis
... The distinction between the price of domestic goods and the CPI is important for goods market shocks, say an autonomous drop in export demand. The importance of this distinction is illustrated in the figures on the next page. These figures depict a simple textbook, ISLM version (e.g., Mankiw (1997) ...
... The distinction between the price of domestic goods and the CPI is important for goods market shocks, say an autonomous drop in export demand. The importance of this distinction is illustrated in the figures on the next page. These figures depict a simple textbook, ISLM version (e.g., Mankiw (1997) ...
Principles of Economics, Case and Fair,9e
... labor market eliminates unemployment and restores its equilibrium? a. The equilibrium wage rises above the wage that prevailed when there was unemployment. b. As it moves toward equilibrium, the market experiences an increase in the quantity of labor demanded and a decrease in the quantity supplied. ...
... labor market eliminates unemployment and restores its equilibrium? a. The equilibrium wage rises above the wage that prevailed when there was unemployment. b. As it moves toward equilibrium, the market experiences an increase in the quantity of labor demanded and a decrease in the quantity supplied. ...
g - Weebly
... Result from graph: Increasing MS causes P to rise. How does this work? Short version: At the initial P, an increase in MS causes excess supply of money. People get rid of their excess money by spending it on g&s or by loaning it to others, who spend it. Result: increased demand for goods. But ...
... Result from graph: Increasing MS causes P to rise. How does this work? Short version: At the initial P, an increase in MS causes excess supply of money. People get rid of their excess money by spending it on g&s or by loaning it to others, who spend it. Result: increased demand for goods. But ...
NBER WORKING PAPER SERIES Marvin Goodfriend Working Paper 13580
... probably contributed to the inflation scare (Goodfriend, 1993). The inflation scare forced the Fed to choose between fighting unemployment and fighting inflation; it had effectively lost “room to maneuver” between go and stop policy. The Federal Reserve reacted aggressively—letting the federal funds ...
... probably contributed to the inflation scare (Goodfriend, 1993). The inflation scare forced the Fed to choose between fighting unemployment and fighting inflation; it had effectively lost “room to maneuver” between go and stop policy. The Federal Reserve reacted aggressively—letting the federal funds ...
The Effects of Macroeconomic Aggregates on Fertility Decisions
... is undoubtedly important, but its beyond the scope of this paper. To reconcile economic theory of fertility decisions with the above findings (some of them are certainly surprising), I consider a business cycle model in which households derive direct utility from children in addition to leisure and ...
... is undoubtedly important, but its beyond the scope of this paper. To reconcile economic theory of fertility decisions with the above findings (some of them are certainly surprising), I consider a business cycle model in which households derive direct utility from children in addition to leisure and ...
Monetary policy with uncertain estimates of potential output
... asserts that economic fluctuations are the outcome of competitive equilibria in which wages and prices adjust rapidly to clear all markets. According to this view, supply shocks (usually labelled technology shocks) are the sole source of fluctuations in real economic variables, such as output and em ...
... asserts that economic fluctuations are the outcome of competitive equilibria in which wages and prices adjust rapidly to clear all markets. According to this view, supply shocks (usually labelled technology shocks) are the sole source of fluctuations in real economic variables, such as output and em ...
mankiw6e-chap04_2007_
... Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate. CHAPTER 4 ...
... Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate. CHAPTER 4 ...
Chapter 9 Chapter Outline Figure 9.1 The FE line
... – The data from the 1973–1974 and 1979–1980 oil price shocks shows the following ...
... – The data from the 1973–1974 and 1979–1980 oil price shocks shows the following ...
Chapter 9
... shocks shows the following • As discussed in Chapter 3, output, employment, and the real wage declined • Consumption fell slightly and investment fell substantially • Inflation surged temporarily • All the above results are consistent with the theory ...
... shocks shows the following • As discussed in Chapter 3, output, employment, and the real wage declined • Consumption fell slightly and investment fell substantially • Inflation surged temporarily • All the above results are consistent with the theory ...
Full employment
Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or deficient-demand unemployment. It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0%. The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year. This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of ""full"" employment. The NAIRU has also been described by Milton Friedman, among others, as the ""natural"" rate of unemployment. Having many names, it has also been called the structural unemployment rate.The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment. Other economists have provided estimates between 2% and 13%, depending on the country, time period, and their political biases. For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s. Recently, economists have emphasized the idea that full employment represents a ""range"" of possible unemployment rates. For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the ""full-employment unemployment rate"" of 4 to 6.4%. This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate.The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve. In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or ""potential"" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary.