Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e.
... © 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. ...
... © 2008 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien, 2e. ...
Government Spending Multipliers under the Zero
... estimates the effects of government spending shocks on the economy. For example, Blanchard and Perotti (2002), Ramey (2011b) and Barro and Redlick (2011), Fisher and Peters (2010) and many other papers identify the multipliers for the U.S. using different identification schemes such as the instituti ...
... estimates the effects of government spending shocks on the economy. For example, Blanchard and Perotti (2002), Ramey (2011b) and Barro and Redlick (2011), Fisher and Peters (2010) and many other papers identify the multipliers for the U.S. using different identification schemes such as the instituti ...
D An Evaluation of Recent Macroeconomic Forecast Errors
... real GDP growth and overpredicted the unemployment rate by a significant amount, for the fifth consecutive year. On average, real GDP forecasts were about 2 percentage points below the actual data for the 1996--2000 period, and unemployment rate forecasts about 0.5 percentage point above. On a more ...
... real GDP growth and overpredicted the unemployment rate by a significant amount, for the fifth consecutive year. On average, real GDP forecasts were about 2 percentage points below the actual data for the 1996--2000 period, and unemployment rate forecasts about 0.5 percentage point above. On a more ...
http://www.cbo.gov/sites/default/files/cbofiles/attachments/45150-PotentialOutput.pdf
... rate that occurs for reasons other than the business cycle and short-term structural factors that affect the unemployment rate. For example, CBO estimates that this underlying rate was 5 percent throughout most of the first decade of the 2000s but that it has risen in the past several years because ...
... rate that occurs for reasons other than the business cycle and short-term structural factors that affect the unemployment rate. For example, CBO estimates that this underlying rate was 5 percent throughout most of the first decade of the 2000s but that it has risen in the past several years because ...
The profit maximizing level of output is found by equating its
... Question No: 9 ( Marks: 1 ) - Please choose one If a sales tax on beer leads to reduced tax revenue, this means: ► Elasticity of demand is < 1. ► Elasticity of demand is > 1. ► Demand is upward-sloping. ► Demand is perfectly inelastic. Question No: 10 ( Marks: 1 ) - Please choose one For a firm buyi ...
... Question No: 9 ( Marks: 1 ) - Please choose one If a sales tax on beer leads to reduced tax revenue, this means: ► Elasticity of demand is < 1. ► Elasticity of demand is > 1. ► Demand is upward-sloping. ► Demand is perfectly inelastic. Question No: 10 ( Marks: 1 ) - Please choose one For a firm buyi ...
Aggregate Demand Aggregate demand
... the difference between short-run and long-run macroeconomic equilibrium. ...
... the difference between short-run and long-run macroeconomic equilibrium. ...
Foundations of Economics, 3e (Bade/Parkin)
... 47) An increase in the price level leads to A) an upward movement along the aggregate supply curve. B) a downward movement along the aggregate supply curve. C) a leftward shift of the aggregate supply curve. D) a rightward shift of the aggregate supply curve. E) neither a movement along the aggrega ...
... 47) An increase in the price level leads to A) an upward movement along the aggregate supply curve. B) a downward movement along the aggregate supply curve. C) a leftward shift of the aggregate supply curve. D) a rightward shift of the aggregate supply curve. E) neither a movement along the aggrega ...
NBER WORKING PAPER SERIES AN ALTERNATIVE INTERPRETATION
... Greenspan—namely the increased focus on fighting inflation—stabilized inflationary expectations and removed this source of economic instability.2 The theoretical argument is based on the Taylor principle: the idea that if the central bank raises interest rates more than one for one with inflation, t ...
... Greenspan—namely the increased focus on fighting inflation—stabilized inflationary expectations and removed this source of economic instability.2 The theoretical argument is based on the Taylor principle: the idea that if the central bank raises interest rates more than one for one with inflation, t ...
AP ECON – Final Exam Review
... all unspent money is deposited in the bank. The interest rate measures which of the following? I. the cost of using a dollar today rather than a year from now II. the benefit of delaying the use of a dollar from today until a year from now III. the price of borrowing money calculated as a percentage ...
... all unspent money is deposited in the bank. The interest rate measures which of the following? I. the cost of using a dollar today rather than a year from now II. the benefit of delaying the use of a dollar from today until a year from now III. the price of borrowing money calculated as a percentage ...
Aggregate Demand and Aggregate Supply
... and services whose prices have not fallen. The price of corn may have fallen, but the prices of wheat, sugar, tractors, steel, and most other goods or services produced in the economy are likely to have fallen as well. Furthermore, a reduction in the price level means that it is not just the prices ...
... and services whose prices have not fallen. The price of corn may have fallen, but the prices of wheat, sugar, tractors, steel, and most other goods or services produced in the economy are likely to have fallen as well. Furthermore, a reduction in the price level means that it is not just the prices ...
Core Inflation: Concepts, Uses and Measurement
... First, as Keynes notes “[c]hanges in relative prices may, of course, affect partial indexnumbers which represent price changes in particular classes of things, e.g. the index of the cost of living of the working classes.”12 Since all price indices produced by statistical agencies can be regarded as ...
... First, as Keynes notes “[c]hanges in relative prices may, of course, affect partial indexnumbers which represent price changes in particular classes of things, e.g. the index of the cost of living of the working classes.”12 Since all price indices produced by statistical agencies can be regarded as ...
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... (2012) by calibrating the model for respectively the Great Inflation and Great Moderation regimes and performing a series of counterfactual exercises. Consistent with the stylized facts, our model predicts a high degree of wage indexation for the Great Inflation, characterized by very volatile - in ...
... (2012) by calibrating the model for respectively the Great Inflation and Great Moderation regimes and performing a series of counterfactual exercises. Consistent with the stylized facts, our model predicts a high degree of wage indexation for the Great Inflation, characterized by very volatile - in ...
Principles of Macroeconomics Self-study quiz and Exercises March
... A) wages and profits. B) interest and taxes. C) transfer payments and dividends. D) taxes and transfer payments. 11) An example of a transfer payment is A) an interest payment on a General Motorsʹ bond. B) the added value of stock from the time it was bought to the time it was sold. C) a Social Secu ...
... A) wages and profits. B) interest and taxes. C) transfer payments and dividends. D) taxes and transfer payments. 11) An example of a transfer payment is A) an interest payment on a General Motorsʹ bond. B) the added value of stock from the time it was bought to the time it was sold. C) a Social Secu ...
the business cycle - McGraw Hill Higher Education
... Relative vs. Average Prices • Inflation is an increase in the average level of prices and services, not a change in any specific price. • Deflation is a decrease in the average level of prices of goods and services. ...
... Relative vs. Average Prices • Inflation is an increase in the average level of prices and services, not a change in any specific price. • Deflation is a decrease in the average level of prices of goods and services. ...
Aggregate Supply
... F. The AD curve and the income expenditure model 1. Drop the assumption that the price level is fixed G. Shifts of the Aggregate Demand Curve 1. An increase in aggregate demand means that the quantity of aggregate output demanded increases at any given aggregate price level. 2. An increase in aggreg ...
... F. The AD curve and the income expenditure model 1. Drop the assumption that the price level is fixed G. Shifts of the Aggregate Demand Curve 1. An increase in aggregate demand means that the quantity of aggregate output demanded increases at any given aggregate price level. 2. An increase in aggreg ...
the aggregate market
... Controlling aggregate demand instability through demand-management policies, including fiscal and monetary policies. Fiscal policy that affects aggregate spending directly through government purchases and indirectly through taxes. Monetary policy that affects aggregate spending indirectly interest r ...
... Controlling aggregate demand instability through demand-management policies, including fiscal and monetary policies. Fiscal policy that affects aggregate spending directly through government purchases and indirectly through taxes. Monetary policy that affects aggregate spending indirectly interest r ...
CHAPTER 13 | Aggregate Demand and Aggregate Supply Analysis
... and in the long run, there is an aggregate supply curve for the long run and an aggregate supply curve for the short run. The long-run aggregate supply curve (LRAS) is a curve showing the relationship in the long run between the price level and the level of real GDP supplied. As we saw in Chapter 11 ...
... and in the long run, there is an aggregate supply curve for the long run and an aggregate supply curve for the short run. The long-run aggregate supply curve (LRAS) is a curve showing the relationship in the long run between the price level and the level of real GDP supplied. As we saw in Chapter 11 ...
This PDF is a selection from a published volume from
... output and inflation are more volatile, and the inflation level is higher. The explanation for the different performance of EMEs relies on the presence of more fragile institutions and imperfect credibility, and on the nature and magnitude of the shocks that hit these economies. There are several in ...
... output and inflation are more volatile, and the inflation level is higher. The explanation for the different performance of EMEs relies on the presence of more fragile institutions and imperfect credibility, and on the nature and magnitude of the shocks that hit these economies. There are several in ...
1 Principles of Macroeconomics, 9e
... A) there has been very little variation in the money supply over time. B) there may be a time lag between a change in the money supply and its effects on nominal GDP. C) there is only one definition of the money supply. D) it is difficult to measure the value of nominal GDP over time. Answer: B Diff ...
... A) there has been very little variation in the money supply over time. B) there may be a time lag between a change in the money supply and its effects on nominal GDP. C) there is only one definition of the money supply. D) it is difficult to measure the value of nominal GDP over time. Answer: B Diff ...
MONETARY POLICY UNDER A NEW KEYNESIAN PERSPECTIVE
... among oil price volatility, firms’ pricing behaviour and monetary policy. We show that when oil is difficult to substitute in production, firms find optimal to charge higher relative prices as a premium in compensation for the risk that oil price volatility generates on their marginal costs. Chapter ...
... among oil price volatility, firms’ pricing behaviour and monetary policy. We show that when oil is difficult to substitute in production, firms find optimal to charge higher relative prices as a premium in compensation for the risk that oil price volatility generates on their marginal costs. Chapter ...
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.