Macro-Module 2- Introduction to Macroeconomics
... 1. What is the difference between real GDP and nominal GDP? 2. Why is real GDP the appropriate measure of real economic activity? 3. Describe how real GDP is calculated. Use Table 11.1. 4. Refer to table 11.2: Explain why real GDP is more useful then nominal GDP. 5. How is unemployment measured? 6. ...
... 1. What is the difference between real GDP and nominal GDP? 2. Why is real GDP the appropriate measure of real economic activity? 3. Describe how real GDP is calculated. Use Table 11.1. 4. Refer to table 11.2: Explain why real GDP is more useful then nominal GDP. 5. How is unemployment measured? 6. ...
TEST I - Steve Kyle`s
... 3. What is the definition of "stagflation"? Please list any historical examples of when this phenomenon may have happened to an economy? Slowing growth in the economy accompanied by a general rise in prices. The U.S. experienced stagflation in the 1970s partially due to rising fuel prices. 4. If the ...
... 3. What is the definition of "stagflation"? Please list any historical examples of when this phenomenon may have happened to an economy? Slowing growth in the economy accompanied by a general rise in prices. The U.S. experienced stagflation in the 1970s partially due to rising fuel prices. 4. If the ...
Chapter 1. A Tour of the World
... (short term interest rates are now equal to zero) and the government increased spending on public works projects and reduced taxes and now faces persistently high budget deficits. These macroeconomic policy measures, designed to stimulate demand, had little effect. Tax cuts, in particular, were not ...
... (short term interest rates are now equal to zero) and the government increased spending on public works projects and reduced taxes and now faces persistently high budget deficits. These macroeconomic policy measures, designed to stimulate demand, had little effect. Tax cuts, in particular, were not ...
Macroeconomics: examines the economy as a whole
... Productivity: the amount of _________ produced from a set amount of inputs (textbook example - building a book case) Unemployment Rate: the percentage of the labor force that is jobless and ________________ for work Does not account for ________________ workers who have stopped looking for work (o ...
... Productivity: the amount of _________ produced from a set amount of inputs (textbook example - building a book case) Unemployment Rate: the percentage of the labor force that is jobless and ________________ for work Does not account for ________________ workers who have stopped looking for work (o ...
Answers to Questions in Chapter 20
... not allow an increase in total output in the economy. An individual firm could only expand its output by attracting labour and other resources away from other firms. But when all firms try to do this, the effect will be for wages and prices to rise by the same percentage as the increase in demand, l ...
... not allow an increase in total output in the economy. An individual firm could only expand its output by attracting labour and other resources away from other firms. But when all firms try to do this, the effect will be for wages and prices to rise by the same percentage as the increase in demand, l ...
Unit 7 Unemployment and inflation Objectives Calculate the
... Unemployment is a situation in which people who want to work cannot find work at prevailing rates. The unemployment rate is the number of unemployed persons expressed as a percentage of the labour force. Thus: ...
... Unemployment is a situation in which people who want to work cannot find work at prevailing rates. The unemployment rate is the number of unemployed persons expressed as a percentage of the labour force. Thus: ...
Align the Stars review questions
... 3. The country of Booga Booga is excited about the economic predictions for 2015. What impact do these predictions have on aggregate supply/demand? a. aggregate demand increases c. aggregate demand decreases b. aggregate supply increases d. aggregate supply decreases 4. If Veronica loses her job at ...
... 3. The country of Booga Booga is excited about the economic predictions for 2015. What impact do these predictions have on aggregate supply/demand? a. aggregate demand increases c. aggregate demand decreases b. aggregate supply increases d. aggregate supply decreases 4. If Veronica loses her job at ...
Unemployment and Inflation - University of Wisconsin–La
... Why is Inflation So Unpopular? • As an economic problem, inflation is widespread since it affects everyone • Workers’ wages may not keep up with inflation • Those on fixed incomes are seriously affected • Long-term contracts are difficult to negotiate • Menu Costs ...
... Why is Inflation So Unpopular? • As an economic problem, inflation is widespread since it affects everyone • Workers’ wages may not keep up with inflation • Those on fixed incomes are seriously affected • Long-term contracts are difficult to negotiate • Menu Costs ...
Chapter 5
... economy and labor force, that change the goodness of fit between the skills necessary to perform jobs and the locations of jobs, and the skills and location of the labor force. 3. Cyclical unemployment is the fluctuation in unemployment caused by the business cycle. C. Full Employment 1. Full employ ...
... economy and labor force, that change the goodness of fit between the skills necessary to perform jobs and the locations of jobs, and the skills and location of the labor force. 3. Cyclical unemployment is the fluctuation in unemployment caused by the business cycle. C. Full Employment 1. Full employ ...
Inflation & Deflation
... leads to higher prices. MxV=PxQ M = money supply V = velocity P = price level Q = quantity of output ...
... leads to higher prices. MxV=PxQ M = money supply V = velocity P = price level Q = quantity of output ...
instructional objectives
... 4. Complexities: It is difficult to distinguish between demand-pull and cost-push causes of inflation, although cost-push will die out in a recession if spending does not also rise. Redistributive effects of inflation: A. The price index is used to deflate nominal income into real income. Inflation ...
... 4. Complexities: It is difficult to distinguish between demand-pull and cost-push causes of inflation, although cost-push will die out in a recession if spending does not also rise. Redistributive effects of inflation: A. The price index is used to deflate nominal income into real income. Inflation ...
Slide 1
... r* is the equilibrium real interest rate, π inflation rate, π* is inflation target, y is log output gap [log(Y/Yp)], b and c are parameters. 2. Assume for now that inflation is at target. So π = π* and we have financial market: ...
... r* is the equilibrium real interest rate, π inflation rate, π* is inflation target, y is log output gap [log(Y/Yp)], b and c are parameters. 2. Assume for now that inflation is at target. So π = π* and we have financial market: ...
AP ch35 pt
... D. Sufficient time has elapsed for real GDP to increase and unemployment to decrease as a consequence 4. Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your: A. Real wage has increased to $21 B. Real wage has decreased t ...
... D. Sufficient time has elapsed for real GDP to increase and unemployment to decrease as a consequence 4. Assume that initially your nominal wage was $16 an hour and the price index was 100. If the price level increases to 105, then your: A. Real wage has increased to $21 B. Real wage has decreased t ...
Business cycle fluctuations
... whole decade Fig. 28.3 suggests a negative correlation between quits and layo¤s and discharges. In Fig. 28.4 we see a Beveridge curve for the U.S. based on observations over a decade. The variable drawn along the horizontal axis in Fig. 28.4 is the unemployment rate in di¤erent months since year 200 ...
... whole decade Fig. 28.3 suggests a negative correlation between quits and layo¤s and discharges. In Fig. 28.4 we see a Beveridge curve for the U.S. based on observations over a decade. The variable drawn along the horizontal axis in Fig. 28.4 is the unemployment rate in di¤erent months since year 200 ...
PowerPoint on US Economy: used in presentation with group where
... http://www.usatoday.com/money/economy/story/Jobs-Forecast-2011/34083932/1 ...
... http://www.usatoday.com/money/economy/story/Jobs-Forecast-2011/34083932/1 ...
PROBLEM SET 3 14.02 Macroeconomics March 15, 2006 Due March 22, 2006
... I. Answer each as True, False, or Uncertain, and explain your choice. 1. Wages are usually below the reservation wage in Europe because the unemployment rate in Europe is so high. 2. Powerful labor unions will decrease the natural rate of unemployment. 3. The aggregate supply curve is upward sloping ...
... I. Answer each as True, False, or Uncertain, and explain your choice. 1. Wages are usually below the reservation wage in Europe because the unemployment rate in Europe is so high. 2. Powerful labor unions will decrease the natural rate of unemployment. 3. The aggregate supply curve is upward sloping ...
introduction and measurement
... are laying off workers driving the unemployment rate up. When inflation rises, people find goods and services to be more expensive. As you can see from the graph, the Phillips curve relationship described in Chapter 1 appears to show up during the recessions in 1982 and 1990. Two dramatic drops in i ...
... are laying off workers driving the unemployment rate up. When inflation rises, people find goods and services to be more expensive. As you can see from the graph, the Phillips curve relationship described in Chapter 1 appears to show up during the recessions in 1982 and 1990. Two dramatic drops in i ...
FREE Sample Here - We can offer most test bank and
... are laying off workers driving the unemployment rate up. When inflation rises, people find goods and services to be more expensive. As you can see from the graph, the Phillips curve relationship described in Chapter 1 appears to show up during the recessions in 1982 and 1990. Two dramatic drops in i ...
... are laying off workers driving the unemployment rate up. When inflation rises, people find goods and services to be more expensive. As you can see from the graph, the Phillips curve relationship described in Chapter 1 appears to show up during the recessions in 1982 and 1990. Two dramatic drops in i ...
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.