Macroeconomics - Econproph on Macro
... • Monetary policy to lower interest Problems: rates • Practicality: • Not effective in liquidity trap • Lag times on policy • Balanced budget over cycle • Size of response • Demand-side focus ...
... • Monetary policy to lower interest Problems: rates • Practicality: • Not effective in liquidity trap • Lag times on policy • Balanced budget over cycle • Size of response • Demand-side focus ...
Why do we have Unemployment?* Prabhat Patnaik
... level of aggregate demand and hence employment in each economy depends upon whether euphoric expectations get generated in a large economy like the U.S., i.e. whether the U.S. has a “bubble” or not. The “dotcom bubble” in the U.S. in the nineties, and the “housing bubble” in the U.S. in the early ye ...
... level of aggregate demand and hence employment in each economy depends upon whether euphoric expectations get generated in a large economy like the U.S., i.e. whether the U.S. has a “bubble” or not. The “dotcom bubble” in the U.S. in the nineties, and the “housing bubble” in the U.S. in the early ye ...
Disequilibrium unemployment
... another]). This theory was first put forward by John Maynard Keynes in the 1930s and contributed to the differences in opinion between classical and Keynesian theory. A fall in the demand for all goods and services (i.e. a fall in aggregate demand) will cause a fall in the demand for labour (usually ...
... another]). This theory was first put forward by John Maynard Keynes in the 1930s and contributed to the differences in opinion between classical and Keynesian theory. A fall in the demand for all goods and services (i.e. a fall in aggregate demand) will cause a fall in the demand for labour (usually ...
October 9—How is your current economic situation similar and
... from 5.25% down to an effective rate at one point last week of about 0.25%. The Federal Reserve has pumped about $1.1 trillion into the financial system in the past 13 months. Fed said it would leave the interest rate at 0.25% for “an extended period.” Policy makers also announced that they wo ...
... from 5.25% down to an effective rate at one point last week of about 0.25%. The Federal Reserve has pumped about $1.1 trillion into the financial system in the past 13 months. Fed said it would leave the interest rate at 0.25% for “an extended period.” Policy makers also announced that they wo ...
Opening Splash
... Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. Microeconomics are is a branch of economics that studies the behavior of individual households and firms in making decisions on the ...
... Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. Microeconomics are is a branch of economics that studies the behavior of individual households and firms in making decisions on the ...
Econ 122a. Fall 2013. Note on definition of potential output Potential
... During business downturns, actual GDP falls below its potential, and unemployment rises. In 2009, for example, the U.S. economy produced about $1000 billion less than its potential output. Output can be temporarily above potential output during booms and wartime as capacity limits are strained, but ...
... During business downturns, actual GDP falls below its potential, and unemployment rises. In 2009, for example, the U.S. economy produced about $1000 billion less than its potential output. Output can be temporarily above potential output during booms and wartime as capacity limits are strained, but ...
Chile_en.pdf
... currency appreciation resumed —a pattern that had been interrupted, in late 2008, by the sharp exchange rate rises that accompanied the onset of the crisis. In response, the monetary authority has limited itself thus far to issuing statements, but has not ruled out the possibility of taking measures ...
... currency appreciation resumed —a pattern that had been interrupted, in late 2008, by the sharp exchange rate rises that accompanied the onset of the crisis. In response, the monetary authority has limited itself thus far to issuing statements, but has not ruled out the possibility of taking measures ...
The Business Cycle
... Business and consumers’ spending are influenced by rates and availability of credit As ...
... Business and consumers’ spending are influenced by rates and availability of credit As ...
Business Cycles
... • Search unemployment is inevitable because the economy is always changing. • Changes in the composition of demand among ...
... • Search unemployment is inevitable because the economy is always changing. • Changes in the composition of demand among ...
FedViews
... The views expressed are those of the author, with input from the forecasting staff of the Federal Reserve Bank of San Francisco. They are not intended to represent the views of others within the Bank or within the Federal Reserve System. FedViews generally appears around the middle of the month. The ...
... The views expressed are those of the author, with input from the forecasting staff of the Federal Reserve Bank of San Francisco. They are not intended to represent the views of others within the Bank or within the Federal Reserve System. FedViews generally appears around the middle of the month. The ...
EXAM I
... Bad question for now, as we haven’t formally discussed this yet. So, don’t worry about it for the sake of this exam. False, unanticipated inflation is likely to redistribute wealth from lenders to borrowers and not the other way around. ...
... Bad question for now, as we haven’t formally discussed this yet. So, don’t worry about it for the sake of this exam. False, unanticipated inflation is likely to redistribute wealth from lenders to borrowers and not the other way around. ...
Implications for Labor Markets and Macro Doctrine
... Implications for Labor Markets and Macro Doctrine Robert J. Gordon Northwestern University, NBER, and CEPR AEA Panel, Denver January 7, 2011 ...
... Implications for Labor Markets and Macro Doctrine Robert J. Gordon Northwestern University, NBER, and CEPR AEA Panel, Denver January 7, 2011 ...
Abbey Corporate PP Template
... The economic outlook is far from certain UK GDP grew very strongly in Q2 (+1.2% q/q), but this rapid pace will weaken. There is speculation about a possible ‘double dip’. ...
... The economic outlook is far from certain UK GDP grew very strongly in Q2 (+1.2% q/q), but this rapid pace will weaken. There is speculation about a possible ‘double dip’. ...
Chapter 5
... The natural level of employment is the employment level at which the quantity of labor demanded equals the quantity supplied. The natural rate of unemployment is the rate of unemployment consistent with the natural level of employment. Frictional unemployment occurs because it takes time for employe ...
... The natural level of employment is the employment level at which the quantity of labor demanded equals the quantity supplied. The natural rate of unemployment is the rate of unemployment consistent with the natural level of employment. Frictional unemployment occurs because it takes time for employe ...
Professor`s Name
... What is meant by a “natural” rate of unemployment? The natural rate of unemployment refers to the avoidable level of unemployment in an economy where labor factors are continuously in transition. Economists in the United States often refer to unemployment as probably being “natural” as long as it is ...
... What is meant by a “natural” rate of unemployment? The natural rate of unemployment refers to the avoidable level of unemployment in an economy where labor factors are continuously in transition. Economists in the United States often refer to unemployment as probably being “natural” as long as it is ...
Chpt. 12: “The Business Cycle and Unemployment”
... Name and describe the four phases of the business cycle. List and describe three possible causes of the business cycle. Explain how the unemployment rare is calculated. Describe the flaws in unemployment statistics. List and describe the four types of unemployment. Describe the measures government m ...
... Name and describe the four phases of the business cycle. List and describe three possible causes of the business cycle. Explain how the unemployment rare is calculated. Describe the flaws in unemployment statistics. List and describe the four types of unemployment. Describe the measures government m ...
Macroeconomics Notes - North Allegheny School District
... –People want to buy profitable stocks as companies expand –Costs fall w/ Economies of Scale => ↑ ∏ ...
... –People want to buy profitable stocks as companies expand –Costs fall w/ Economies of Scale => ↑ ∏ ...
ECON 3560/5040 Homework #6 (Answers)
... of firms with sticky prices. Other things being equal, if a greater proportion of firms follows the sticky-price rule, what happens to the slope of the AS curve? The slope of AS curve ( α1 ) increases (decreases) as the fraction of firms with flexible prices increases (decreases) in the sticky-price ...
... of firms with sticky prices. Other things being equal, if a greater proportion of firms follows the sticky-price rule, what happens to the slope of the AS curve? The slope of AS curve ( α1 ) increases (decreases) as the fraction of firms with flexible prices increases (decreases) in the sticky-price ...
Matching History and Theory
... Keynesian Economics and the Keynesian Short-Run Aggregate Supply Curve (cont'd) • Real GDP and the price level, 1934–1940 – Keynes argued that in a depressed economy, increased aggregate spending can increase output without raising prices. – Data showing the U.S. recovery from the Great Depression ...
... Keynesian Economics and the Keynesian Short-Run Aggregate Supply Curve (cont'd) • Real GDP and the price level, 1934–1940 – Keynes argued that in a depressed economy, increased aggregate spending can increase output without raising prices. – Data showing the U.S. recovery from the Great Depression ...
14.02 Principles of Macroeconomics Spring 03 Quiz 2 Thursday, April 10, 2003
... a) the aggregate supply equation and inflation expectations set to zero b) the aggregate demand equation and inflation expectations set equal to previous period inflation c) the aggregate supply equation and inflation expectations set equal to previous period inflation d) the aggregate demand equati ...
... a) the aggregate supply equation and inflation expectations set to zero b) the aggregate demand equation and inflation expectations set equal to previous period inflation c) the aggregate supply equation and inflation expectations set equal to previous period inflation d) the aggregate demand equati ...
7-2 (Key Question) Suppose an economy`s real GDP is $30,000 in
... cycles last? How do seasonal variations and long-term trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods and consumer durable goods industries more severely than in industries producing nondurables? The four phases of a typi ...
... cycles last? How do seasonal variations and long-term trends complicate measurement of the business cycle? Why does the business cycle affect output and employment in capital goods and consumer durable goods industries more severely than in industries producing nondurables? The four phases of a typi ...
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.