FinalExamReviewGuide
... 1) Draw the Circular Flow of the Economy 2) What 3 questions must every economic system answer? 3) Draw a PPF curve and label points above, below & on the curve (constant cost PPF vs. increasing cost PPF) 4) What is the long run goal of an economy in regard to a PPF curve? 5) Why do countries trade? ...
... 1) Draw the Circular Flow of the Economy 2) What 3 questions must every economic system answer? 3) Draw a PPF curve and label points above, below & on the curve (constant cost PPF vs. increasing cost PPF) 4) What is the long run goal of an economy in regard to a PPF curve? 5) Why do countries trade? ...
You have 50 minutes to complete the 100 points worth... reasonable Economics 259
... ______, and the amount of government spending is determined ______. a. labor's share of output; capital's share of output; by the interest rate b. the interest rate; disposable income; by tax revenue c. the real wage; the real rental price of capital; by factor prices d. taxes; the MPL; exogenously ...
... ______, and the amount of government spending is determined ______. a. labor's share of output; capital's share of output; by the interest rate b. the interest rate; disposable income; by tax revenue c. the real wage; the real rental price of capital; by factor prices d. taxes; the MPL; exogenously ...
Unit 6
... Full Employment (natural rate of unemployment) Keynesian v. Classical economic theory Balanced Budget ...
... Full Employment (natural rate of unemployment) Keynesian v. Classical economic theory Balanced Budget ...
CFO11e_ch29
... It generally rose between 2003 and 2008, fell somewhat in late 2008 and early 2009, rose slightly to 2011 and then remained flat. © 2014 Pearson Education, Inc. ...
... It generally rose between 2003 and 2008, fell somewhat in late 2008 and early 2009, rose slightly to 2011 and then remained flat. © 2014 Pearson Education, Inc. ...
slides only - Post Keynesian Study Group
... Full Employment: all potential workers will be employed (in either scenario) so long as the wage at which they are willing to offer labour services is equal to the value of their marginal product ...
... Full Employment: all potential workers will be employed (in either scenario) so long as the wage at which they are willing to offer labour services is equal to the value of their marginal product ...
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... Another long-run consequence could be a decline in consumer and business confidence, and another, possibly worldwide, recession.” ...
... Another long-run consequence could be a decline in consumer and business confidence, and another, possibly worldwide, recession.” ...
The Social and Economic Importance of Full Employment
... Unemployment was singled out by Keynes as one of the principle faults of capitalism; the other is excessive inequality. Obviously there is some link between these two faults: because most people living in capitalist economies must work for wages as a major source of their incomes, inability to obtai ...
... Unemployment was singled out by Keynes as one of the principle faults of capitalism; the other is excessive inequality. Obviously there is some link between these two faults: because most people living in capitalist economies must work for wages as a major source of their incomes, inability to obtai ...
Slide 1
... AD is like IS-LM equilibrium except is substitutes the Fed response for a fixed money supply AS is Phillips curve with substituting for expected inflation Note that we have moved up one derivative from intro AD-AD because of Phillips curve. ...
... AD is like IS-LM equilibrium except is substitutes the Fed response for a fixed money supply AS is Phillips curve with substituting for expected inflation Note that we have moved up one derivative from intro AD-AD because of Phillips curve. ...
Slide 1
... Translate (3) into a relationship between gw and the level of employment: If N* = full employment N = actual level of employment u = share of N* that is not employed, then ...
... Translate (3) into a relationship between gw and the level of employment: If N* = full employment N = actual level of employment u = share of N* that is not employed, then ...
AS Function
... and services purchased by households Producer price index: the wholesale prices of approximately 3000 items GDP Deflator: the prices of all goods and services currently produced. ...
... and services purchased by households Producer price index: the wholesale prices of approximately 3000 items GDP Deflator: the prices of all goods and services currently produced. ...
Introduction to Macroeconomics
... • According to the classical approach, the government should have a limited role in the economy – largely because there is no need for it to do anything except provide public goods like defense. • The “least government is the best government”. • It depends on markets not failing. ...
... • According to the classical approach, the government should have a limited role in the economy – largely because there is no need for it to do anything except provide public goods like defense. • The “least government is the best government”. • It depends on markets not failing. ...
Macroeconomics - University of Oxford
... fixed). This leads to an deterioration in the primary current account. • The third is the Keynes effect. When prices rise unexpectedly, people need more money for day to day transactions and so try to switch their money balances from bonds and shares. This raises interest rates and hence reduces int ...
... fixed). This leads to an deterioration in the primary current account. • The third is the Keynes effect. When prices rise unexpectedly, people need more money for day to day transactions and so try to switch their money balances from bonds and shares. This raises interest rates and hence reduces int ...
Economics 9/24/14 http://mrmilewski.com /a/csdm.k12.mi.us
... Demand Shocks and Sticky Prices • If prices are sticky, or inflexible, demand shocks will result in short-term changes in production and employment. • If demand drops below the optimum level, production would have to drop to match demand. If it rises above optimal level, production would have to in ...
... Demand Shocks and Sticky Prices • If prices are sticky, or inflexible, demand shocks will result in short-term changes in production and employment. • If demand drops below the optimum level, production would have to drop to match demand. If it rises above optimal level, production would have to in ...
Notes on the Taylor Rule
... Figure 1: The Federal Funds rate, 1988:01–2016:12, along with fitted values from estimation of a Taylor rule over the period 1988:01–2008:10 least, be consistent with) the existing rates of inflation and unemployment. That is, its effect should neither be expansionary (which would tend to drive infl ...
... Figure 1: The Federal Funds rate, 1988:01–2016:12, along with fitted values from estimation of a Taylor rule over the period 1988:01–2008:10 least, be consistent with) the existing rates of inflation and unemployment. That is, its effect should neither be expansionary (which would tend to drive infl ...
Principles of Economics, Case and Fair,9e
... determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. aggregate behavior The behavior of all households and firms together. sticky prices Prices that do not always adjust rapid ...
... determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. aggregate behavior The behavior of all households and firms together. sticky prices Prices that do not always adjust rapid ...
Aggregate S&D
... In micro a given technology may produce an "envelop" of short run cost curves But in aggregate, technology can change and output can be expanded indefinately! ...
... In micro a given technology may produce an "envelop" of short run cost curves But in aggregate, technology can change and output can be expanded indefinately! ...
Macroeconomics (AGEC 512)
... aggregate supply responds passively to aggregate demand and national income is therefore determined by aggregate demand. On the other hand, aggregate demand is partly autonomous and partly positively related to income, with a marginal propensity to spend (on all forms of demand) less than unity. T ...
... aggregate supply responds passively to aggregate demand and national income is therefore determined by aggregate demand. On the other hand, aggregate demand is partly autonomous and partly positively related to income, with a marginal propensity to spend (on all forms of demand) less than unity. T ...
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.