macro quiz 6.tst
... 16) Fiscal policy can be defined as A) government policy with respect to transfer payments such as unemployment compensation and welfare. B) government spending and tax decisions accomplished using automatic stabilizers. C) government policy to retire the federal government debt. D) use of the fede ...
... 16) Fiscal policy can be defined as A) government policy with respect to transfer payments such as unemployment compensation and welfare. B) government spending and tax decisions accomplished using automatic stabilizers. C) government policy to retire the federal government debt. D) use of the fede ...
Current Issues
... raising taxes and cutting spending during recession and the opposite during booms. They support discretionary fiscal policy to combat recession or inflation even if it causes a deficit or surplus budget. C. The U.S. economy has been about one-third more stable since 1946 than in earlier periods. Dis ...
... raising taxes and cutting spending during recession and the opposite during booms. They support discretionary fiscal policy to combat recession or inflation even if it causes a deficit or surplus budget. C. The U.S. economy has been about one-third more stable since 1946 than in earlier periods. Dis ...
Document
... • Obviously a lot easier to turn around a small country like Ireland than a very large country. • The same level of foreign direct investment would have much less of an impact on, say, the Spanish economy. • Factor number 10 was “luck”. Most of the above mentioned factors complemented each other in ...
... • Obviously a lot easier to turn around a small country like Ireland than a very large country. • The same level of foreign direct investment would have much less of an impact on, say, the Spanish economy. • Factor number 10 was “luck”. Most of the above mentioned factors complemented each other in ...
Review for Unit 2 Exam KEYGross Domestic Product What are the
... For each of the following identify if it is included or excluded in the calculation of GDP. If included, state which component, and if excluded, why? a. A used economics textbook from the bookstore Excluded; used good b. New harvesting equipment for the farm Included; Investment spending (new physic ...
... For each of the following identify if it is included or excluded in the calculation of GDP. If included, state which component, and if excluded, why? a. A used economics textbook from the bookstore Excluded; used good b. New harvesting equipment for the farm Included; Investment spending (new physic ...
YOUR NAME: INTRODUCTION TO MACROECONOMICS. FINAL
... a/ Unemployment rate can decrease in an Economy even if in that economy there is a net destruction of jobs. b/ If we read today on newspaper that Nominal GDP growth of Spanish Economy for 2013 is expected to be 1%, those are positive news, since it implies more goods and/or services will be produced ...
... a/ Unemployment rate can decrease in an Economy even if in that economy there is a net destruction of jobs. b/ If we read today on newspaper that Nominal GDP growth of Spanish Economy for 2013 is expected to be 1%, those are positive news, since it implies more goods and/or services will be produced ...
THE MAASTRICHT CRITERIA
... the competitiveness of their exports and compete on markets: • 1) Improve the quality of their products. • 2) Produce at lower costs, so to sell at lower prices (i.e. having low inflation). • 3) Use the exchange rate to artificially gain competiveness (depreciation/devaluation) ...
... the competitiveness of their exports and compete on markets: • 1) Improve the quality of their products. • 2) Produce at lower costs, so to sell at lower prices (i.e. having low inflation). • 3) Use the exchange rate to artificially gain competiveness (depreciation/devaluation) ...
ECON 1010 Principles of Macroeconomics Final Exam Professor
... b. out of work to those over age 16. c. unemployed to those looking for work. d. unemployed to those in the labor force. __________________________________________________________________________________________ 18. If a country has a working-age population of 200 million, 135 million people with jo ...
... b. out of work to those over age 16. c. unemployed to those looking for work. d. unemployed to those in the labor force. __________________________________________________________________________________________ 18. If a country has a working-age population of 200 million, 135 million people with jo ...
Speech to the Arizona Council on Economic Education Scottsdale, Arizona
... While the decline in housing activity has been significant and will probably continue for a while longer, I think the concerns we used to hear about the possibility of a devastating collapse—one that might be big enough to cause a recession in the U.S. economy—have been largely allayed. As I mention ...
... While the decline in housing activity has been significant and will probably continue for a while longer, I think the concerns we used to hear about the possibility of a devastating collapse—one that might be big enough to cause a recession in the U.S. economy—have been largely allayed. As I mention ...
Multiple Choice Questions
... for about a. fifteen times its previous year's "trailing" earnings--half the value stocks had at the end of the second millennium** b. thirty times its previous year's "trailing" earnings--about equal to the value stocks had at the end of the second millennium c. fifteen times its previous year's "t ...
... for about a. fifteen times its previous year's "trailing" earnings--half the value stocks had at the end of the second millennium** b. thirty times its previous year's "trailing" earnings--about equal to the value stocks had at the end of the second millennium c. fifteen times its previous year's "t ...
PRESIDENT'S REPORT TO THE BOARD OF DIRECTORS,
... Core inflation for consumers and wholesalers remains low, and total compensation costs, measured by the ECI, edged slightly downward, as inflation for wages and salaries remained flat and the growth in benefit costs slowed. What little data we have for 2004 suggest continued improvement in economic ...
... Core inflation for consumers and wholesalers remains low, and total compensation costs, measured by the ECI, edged slightly downward, as inflation for wages and salaries remained flat and the growth in benefit costs slowed. What little data we have for 2004 suggest continued improvement in economic ...
Advanced Placement Annual Conference, 2011 San Francisco, CA
... To balance the federal budget, suppose that the government decides to raise income taxes while maintaining the current level of government spending. On the graph drawn in part (b), show the effect of the increase in taxes. Label the new equilibrium output and price levels Y2 and PL2, respectively. ...
... To balance the federal budget, suppose that the government decides to raise income taxes while maintaining the current level of government spending. On the graph drawn in part (b), show the effect of the increase in taxes. Label the new equilibrium output and price levels Y2 and PL2, respectively. ...
NBER WORKING PAPER SERIES Roger E.A. Farmer Dmitry Plotnikov
... capital and consumption are different goods. We assume that there is one unit of non-reproducible capital. We define to be the money value of GDP. From the national income accounting identity this is equal to the sum of nominal consumption and nominal government expenditure , ...
... capital and consumption are different goods. We assume that there is one unit of non-reproducible capital. We define to be the money value of GDP. From the national income accounting identity this is equal to the sum of nominal consumption and nominal government expenditure , ...
STUDY QUESTIONS FOR QUIZ 1 File
... The “expected real” interest rate is the (a) rate actually quoted in financial markets. (b) rate actually quoted in financial markets minus the expected inflation rate. (c) rate actually quoted in financial markets plus the expected inflation rate. (d) rate actually quoted in financial markets divid ...
... The “expected real” interest rate is the (a) rate actually quoted in financial markets. (b) rate actually quoted in financial markets minus the expected inflation rate. (c) rate actually quoted in financial markets plus the expected inflation rate. (d) rate actually quoted in financial markets divid ...
Global Economy - Georgia State University
... Attendance: Attendance is required by the University. University policy states that all instructors must, on a date after the midpoint of the course (to be set by the Provost), 1. Give a WF to all those students who are on their rolls, but no longer taking the class; and 2. Report the last day the s ...
... Attendance: Attendance is required by the University. University policy states that all instructors must, on a date after the midpoint of the course (to be set by the Provost), 1. Give a WF to all those students who are on their rolls, but no longer taking the class; and 2. Report the last day the s ...
Speech before an Australian Business Economists luncheon
... new houses—must be produced in the U.S., so foreign capacity is not an issue there. Indeed only 10% of American workers are in manufacturing, which is arguably the sector most exposed to foreign competition. Second, there is the issue of foreign exchange rates. The dollar prices of goods that we im ...
... new houses—must be produced in the U.S., so foreign capacity is not an issue there. Indeed only 10% of American workers are in manufacturing, which is arguably the sector most exposed to foreign competition. Second, there is the issue of foreign exchange rates. The dollar prices of goods that we im ...
List of Key Concepts and Graphs
... composition, scarcity, opportunity cost, model, production possibilities, constant costs, law of increasing opportunity cost, absolute advantage, comparative advantage, specialization, terms of trade, demand, law of demand, quantity demanded, market demand, substitutes, complements, normal goods, in ...
... composition, scarcity, opportunity cost, model, production possibilities, constant costs, law of increasing opportunity cost, absolute advantage, comparative advantage, specialization, terms of trade, demand, law of demand, quantity demanded, market demand, substitutes, complements, normal goods, in ...
Relationship between Youth Unemployment and Minimum Real Wage
... To show how changes in minimum wage affects youth unemployment, the theory of aggregate demand and aggregate supply model is used in this section. Macroeconomists believe that the key difference between the short run and the long run is the behavior of prices. Over long periods of time, prices are fl ...
... To show how changes in minimum wage affects youth unemployment, the theory of aggregate demand and aggregate supply model is used in this section. Macroeconomists believe that the key difference between the short run and the long run is the behavior of prices. Over long periods of time, prices are fl ...
Mankiw: Brief Principles of Macroeconomics, Second Edition
... Cost of Reducing Inflation • The sacrifice the society has to go through is the high unemployment rate it has to endure until inflationary expectations are lowered to acceptable levels. • The Volcker years of the Fed were severe unemployment period but inflation was lowered from two digit levels do ...
... Cost of Reducing Inflation • The sacrifice the society has to go through is the high unemployment rate it has to endure until inflationary expectations are lowered to acceptable levels. • The Volcker years of the Fed were severe unemployment period but inflation was lowered from two digit levels do ...
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.