Spring 1997 Midterm #2
... 1. Which of following would result in demand-pull inflation in the US? a) The US government increases taxes. b) The members of OPEC agree to lower the worldwide supply of oil. c) Demand for US exports increases overseas. d) Japan feels sorry for the US economy and donates free capital. e) None of th ...
... 1. Which of following would result in demand-pull inflation in the US? a) The US government increases taxes. b) The members of OPEC agree to lower the worldwide supply of oil. c) Demand for US exports increases overseas. d) Japan feels sorry for the US economy and donates free capital. e) None of th ...
Macroeconomics
... • The Bureau of Labor Statistics calculates this statistic monthly. • The unemployment rate is an imperfect measure of joblessness. • In the U.S. economy, most people who become unemployed find work within a short period of time. • Most unemployment observed at any given time is attributable to a fe ...
... • The Bureau of Labor Statistics calculates this statistic monthly. • The unemployment rate is an imperfect measure of joblessness. • In the U.S. economy, most people who become unemployed find work within a short period of time. • Most unemployment observed at any given time is attributable to a fe ...
ch 11 national economy
... • Definition: Job-seekers do not have skills to demanded for a job • Example: I want to be a bus-driver, however the opening requires a CDL, I have a class C driver’s license. • Note: this is more serious because the unemployed individual may have to get additional retraining – BEFORE – the get hire ...
... • Definition: Job-seekers do not have skills to demanded for a job • Example: I want to be a bus-driver, however the opening requires a CDL, I have a class C driver’s license. • Note: this is more serious because the unemployed individual may have to get additional retraining – BEFORE – the get hire ...
Sample questions
... Rational agents learn from what they have observed in the past. Therefore, if the government applies a policy the agents have previously seen, they will adjust their price expectations accordingly. This aggregate supply will offset the effect of government policies on the output level and exacerbate ...
... Rational agents learn from what they have observed in the past. Therefore, if the government applies a policy the agents have previously seen, they will adjust their price expectations accordingly. This aggregate supply will offset the effect of government policies on the output level and exacerbate ...
Presentation to the Mesa Chamber of Commerce Mesa, Arizona
... market, household income, and consumer spending, and is therefore good for business. In fact, what’s really been missing in this recovery is wage growth of around 3 or 3½ percent. That’s the rate I’d expect in a fully functioning economy with a 2 percent inflation rate. Now we’re starting to see th ...
... market, household income, and consumer spending, and is therefore good for business. In fact, what’s really been missing in this recovery is wage growth of around 3 or 3½ percent. That’s the rate I’d expect in a fully functioning economy with a 2 percent inflation rate. Now we’re starting to see th ...
Homework for Chapter 8
... could expect to recoup at least part of the loss at contract renewal time. In the more likely event of the clerk not being unionized, the clerk’s real income would decrease, possibly by as much as the pensioned railroad worker. (c) Since the UAW worker is unionized, the loss in the first year would ...
... could expect to recoup at least part of the loss at contract renewal time. In the more likely event of the clerk not being unionized, the clerk’s real income would decrease, possibly by as much as the pensioned railroad worker. (c) Since the UAW worker is unionized, the loss in the first year would ...
rh351_transparencies6_std - Rose
... any period for which the average rate of change of prices, and hence the anticipated rate, has been relatively stable. For such periods, nominal and real wages move together … The higher the average rate of price change, the higher will tend to be the level of the curve… ...
... any period for which the average rate of change of prices, and hence the anticipated rate, has been relatively stable. For such periods, nominal and real wages move together … The higher the average rate of price change, the higher will tend to be the level of the curve… ...
Chapter 8
... Definition of “Full Employment” 1. Frictional and structural unemployment is unavoidable, hence, full employment is something less than 100%. Full employment does not mean zero unemployment. 2. The unemployment rate consistent with full-employment is equal to the total of frictional and structural ...
... Definition of “Full Employment” 1. Frictional and structural unemployment is unavoidable, hence, full employment is something less than 100%. Full employment does not mean zero unemployment. 2. The unemployment rate consistent with full-employment is equal to the total of frictional and structural ...
1 - Southwestern Secure Online
... piece of classical theory? When? Name of his book? When looking at the economy as a whole, how is the approach of “macroeconomics” different from classical economics? Explain the tradeoff in this theory. (See your deflation handout.) What is the policy implication of Keynesian economics? 18. Explain ...
... piece of classical theory? When? Name of his book? When looking at the economy as a whole, how is the approach of “macroeconomics” different from classical economics? Explain the tradeoff in this theory. (See your deflation handout.) What is the policy implication of Keynesian economics? 18. Explain ...
Ch13
... Theory #1: Sticky Price Model Those firms that will follow the equation p P (Y Y ) will be able to alter their prices as P and Y changes. These are the flexible price firms. Other firms will set their prices for a longer period and pick the expected price when the economy is at long term eq ...
... Theory #1: Sticky Price Model Those firms that will follow the equation p P (Y Y ) will be able to alter their prices as P and Y changes. These are the flexible price firms. Other firms will set their prices for a longer period and pick the expected price when the economy is at long term eq ...
Why Are People Unemployed?
... employers won’t need as many workers. Keynesian economists in particular focus on this point. Unemployment is also caused by the supply-side. This is an effect from imperfections in the labor market. An ideal labor market will always clear. Therefore, supply equals demand. Although when the market ...
... employers won’t need as many workers. Keynesian economists in particular focus on this point. Unemployment is also caused by the supply-side. This is an effect from imperfections in the labor market. An ideal labor market will always clear. Therefore, supply equals demand. Although when the market ...
unemployed
... Some people are unemployed for a week or two and others for a year or more. A short unemployment spell is not a major problem, especially if the person ends up with a better job than the previous one. But a long spell of unemployment imposes a large personal cost to the unemployed, leads to a loss o ...
... Some people are unemployed for a week or two and others for a year or more. A short unemployment spell is not a major problem, especially if the person ends up with a better job than the previous one. But a long spell of unemployment imposes a large personal cost to the unemployed, leads to a loss o ...
Slide 1
... will eventually return to its original size. If John lost his job as an auto worker as a result of the current recession, but expects that he will get his job back, John is: ...
... will eventually return to its original size. If John lost his job as an auto worker as a result of the current recession, but expects that he will get his job back, John is: ...
Potential GDP
... a mismatch between the skills of unemployed workers and the needs of employers with unfilled jobs. – Cyclical unemployment is caused by a lack of demand for the products sold by the employer. ...
... a mismatch between the skills of unemployed workers and the needs of employers with unfilled jobs. – Cyclical unemployment is caused by a lack of demand for the products sold by the employer. ...
agg demand pp
... costs such as supply (SRAS) overall wage assumes firms only rate remain able to increase fixed, changes output at higher in such costs costs (e.g. overtime cause a shift in payments) the SRASthereby curve pushing up price (exogenous level shocks – input costs) ...
... costs such as supply (SRAS) overall wage assumes firms only rate remain able to increase fixed, changes output at higher in such costs costs (e.g. overtime cause a shift in payments) the SRASthereby curve pushing up price (exogenous level shocks – input costs) ...
Short-run Phillips Curve
... • The long-run Phillips curve shows the relationship between unemployment and inflation after expectations of inflation have had time to adjust to experience. • To avoid accelerating inflation over time, the unemployment rate must be high enough that the actual rate of inflation matches the expected ...
... • The long-run Phillips curve shows the relationship between unemployment and inflation after expectations of inflation have had time to adjust to experience. • To avoid accelerating inflation over time, the unemployment rate must be high enough that the actual rate of inflation matches the expected ...
Economics for Today 2005
... Monetarists see the cause of inflation as “too much money chasing too few goods,” based on the quantity of money theory (MV = PQ). To cure inflation, they would cut the money supply and force the Fed to stick to a fixed money supply growth rate. In the short run, the unemployment rate will rise, but ...
... Monetarists see the cause of inflation as “too much money chasing too few goods,” based on the quantity of money theory (MV = PQ). To cure inflation, they would cut the money supply and force the Fed to stick to a fixed money supply growth rate. In the short run, the unemployment rate will rise, but ...
chapter overview - Canvas by Instructure
... a. As firms respond to insufficient demand for their goods and services, output and employment are reduced. b. Extreme unemployment during the Great Depression (25 percent in 1933) was cyclical unemployment. 4. It is sometimes not clear which type describes a person’s unemployment circumstances. C. ...
... a. As firms respond to insufficient demand for their goods and services, output and employment are reduced. b. Extreme unemployment during the Great Depression (25 percent in 1933) was cyclical unemployment. 4. It is sometimes not clear which type describes a person’s unemployment circumstances. C. ...
Principles of Sociology - AUEB e
... Clothing and computer system manufacturers assign the task of production to other contractors in developing countries. These contractors try to be economically ‘attractive’ to western manufacturers by rising their productivity and decreasing production costs. Competition has resulted in a global ‘ra ...
... Clothing and computer system manufacturers assign the task of production to other contractors in developing countries. These contractors try to be economically ‘attractive’ to western manufacturers by rising their productivity and decreasing production costs. Competition has resulted in a global ‘ra ...
Unit 4 Overview
... Various laws and private contracts use price indexes to correct for the effects of inflation. The tax laws, however, are only partially indexed for inflation. The real interest rate equals the nominal interest rate minus the rate of inflation. The unemployment rate is the percentage of those w ...
... Various laws and private contracts use price indexes to correct for the effects of inflation. The tax laws, however, are only partially indexed for inflation. The real interest rate equals the nominal interest rate minus the rate of inflation. The unemployment rate is the percentage of those w ...
Financial Crisis 2008
... NOTE: Depth measures the average percent change from peak to trough for real GDP and real GDI and the average percentage-point change from trough to peak for the unemployment rate. Changes in real GDP and real GDI during the Great Depression are based on annual data. SOURCE: Kevin L. Kliesen’s calcu ...
... NOTE: Depth measures the average percent change from peak to trough for real GDP and real GDI and the average percentage-point change from trough to peak for the unemployment rate. Changes in real GDP and real GDI during the Great Depression are based on annual data. SOURCE: Kevin L. Kliesen’s calcu ...
Jamaica_en.pdf
... will persist for some time given slow economic growth and limited expenditure reduction. The Bank of Jamaica sought to reduce interest rates in order to stimulate investment by the private sector on the heels of the IMF agreement and the successful implementation of the Jamaica Debt Exchange (JDX). ...
... will persist for some time given slow economic growth and limited expenditure reduction. The Bank of Jamaica sought to reduce interest rates in order to stimulate investment by the private sector on the heels of the IMF agreement and the successful implementation of the Jamaica Debt Exchange (JDX). ...
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.