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... and China, pushed oil prices above $60 per barrel (and over $70 per barrel in July 2006). Canadian inflation rose in 2005, but not core inflation (inflation rate minus price changes in food and energy). D. In 2007 oil prices again increased to $50 per barrel and in July of 2008 prices increased to $ ...
... and China, pushed oil prices above $60 per barrel (and over $70 per barrel in July 2006). Canadian inflation rose in 2005, but not core inflation (inflation rate minus price changes in food and energy). D. In 2007 oil prices again increased to $50 per barrel and in July of 2008 prices increased to $ ...
Chapter 12: Aggregate Demand and Aggregate Supply Analysis
... wages only slowly, a rise in the PL will increase the pro…tability of hiring more workers and producing more output. 3. Menu costs (The costs to …rms of changing prices) make some prices sticky. Firms base their prices today partly on what they expect future prices to be. Consider the e¤ect of an un ...
... wages only slowly, a rise in the PL will increase the pro…tability of hiring more workers and producing more output. 3. Menu costs (The costs to …rms of changing prices) make some prices sticky. Firms base their prices today partly on what they expect future prices to be. Consider the e¤ect of an un ...
The Modern Macroeconomic Debate
... AD/AS model is the long run supply curve. The long run supply curve shows the amount of goods and services an economy can produce when both labour and capital are fully employed. ...
... AD/AS model is the long run supply curve. The long run supply curve shows the amount of goods and services an economy can produce when both labour and capital are fully employed. ...
Government Spending Multipliers in Good Times and in Bad
... state but to very low multipliers in the low unemployment state. We perform extensive robustness checks with respect to our measures of state, sample period, the behavior of taxes, and alternative estimation frameworks and find little change in the estimates. We find mixed evidence on the size of th ...
... state but to very low multipliers in the low unemployment state. We perform extensive robustness checks with respect to our measures of state, sample period, the behavior of taxes, and alternative estimation frameworks and find little change in the estimates. We find mixed evidence on the size of th ...
Free Full Text ( Final Version , 817kb )
... As for China, there are two base years of CPI: either 1978=100 or PY (previous year) =100 for the reason that China began to liberalize the prices towards a market-guided economy since 1978. Other measures include GDP deflator, producer price indices (PPI), core price indices (CI) and retail price i ...
... As for China, there are two base years of CPI: either 1978=100 or PY (previous year) =100 for the reason that China began to liberalize the prices towards a market-guided economy since 1978. Other measures include GDP deflator, producer price indices (PPI), core price indices (CI) and retail price i ...
NBER WORKING PAPER SERIES PARTIAL ADJUSTMENT WITHOUT APOLOGY Robert G. King
... Engel, and Haltiwanger (1997). There, individual production units are assumed to adjust employment probabilistically, with adjustment probabilities being a function the difference between a target level of employment and actual employment. Aggregating from such adjustment hazard functions, which are ...
... Engel, and Haltiwanger (1997). There, individual production units are assumed to adjust employment probabilistically, with adjustment probabilities being a function the difference between a target level of employment and actual employment. Aggregating from such adjustment hazard functions, which are ...
Document
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
Partial Adjustment Without Apology
... hire varying amounts of labor at discrete and occasional times, and it illustrates a resulting hedging effect on the demand for labor. Next, section 5 embeds the framework within a fully specified general equilibrium macroeconomic model and endogenizes the timing of employment changes by assuming tha ...
... hire varying amounts of labor at discrete and occasional times, and it illustrates a resulting hedging effect on the demand for labor. Next, section 5 embeds the framework within a fully specified general equilibrium macroeconomic model and endogenizes the timing of employment changes by assuming tha ...
Economic Review, 2nd Quarter, 1999
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
Sample Chapter 28
... One of the primary responsibilities of the Fed, or any central bank, is to maintain a low and stable rate of inflation. For example, in recent years, the Fed has tried to keep inflation in the United States in the range of 2 to 3 percent. By keeping inflation low, the central bank tries to avoid the ...
... One of the primary responsibilities of the Fed, or any central bank, is to maintain a low and stable rate of inflation. For example, in recent years, the Fed has tried to keep inflation in the United States in the range of 2 to 3 percent. By keeping inflation low, the central bank tries to avoid the ...
The importance of unemployment insurance as an automatic stabilizer
... and show that programs that rely on redistribution (i.e. those that receive funds have higher propensities to spend them than those who give the funds, aggregate consumption and demand will rise with redistribution) and social insurance (i.e. policies alter the risks households face with consequenc ...
... and show that programs that rely on redistribution (i.e. those that receive funds have higher propensities to spend them than those who give the funds, aggregate consumption and demand will rise with redistribution) and social insurance (i.e. policies alter the risks households face with consequenc ...
Chapter 36 MC — Five Debates Over Macroeconomic Policy
... a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy. b. when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply. c. people will believe Fed policy will be more ...
... a. what policymakers say they will do is generally what they will do, but people don't believe them because of current policy. b. when people expect that inflation will be low, it is harder for the Fed to increase output by increasing the money supply. c. people will believe Fed policy will be more ...
MNB Alapsablon - Magyar Nemzeti Bank
... In the Council’s judgement, maintaining loose monetary conditions for an extended period is warranted by the mediumterm achievement of the Bank’s inflation target and a corresponding degree of support to the real economy. In addition to the primary goal of meeting the inflation target, the Council a ...
... In the Council’s judgement, maintaining loose monetary conditions for an extended period is warranted by the mediumterm achievement of the Bank’s inflation target and a corresponding degree of support to the real economy. In addition to the primary goal of meeting the inflation target, the Council a ...
1 Principles of Macroeconomics, 9e
... A) a bonus to get a worker to accept a transfer. B) a cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment. C) a cash payment for transferring a good from one person to another. D) an in kind payment for working "off the books." Answer: ...
... A) a bonus to get a worker to accept a transfer. B) a cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment. C) a cash payment for transferring a good from one person to another. D) an in kind payment for working "off the books." Answer: ...
PDF
... seems to indicate that their initial level of diversity is not as important as their change in diversity. Therefore, this could mean that as long as a state can accelerate its industrial diversification, they may be able to reduce the duration of their recessions. The economic performance of a state ...
... seems to indicate that their initial level of diversity is not as important as their change in diversity. Therefore, this could mean that as long as a state can accelerate its industrial diversification, they may be able to reduce the duration of their recessions. The economic performance of a state ...
The Contributions of Milton Friedman to Economics
... Because economics is a discipline that advances through debate and diversity of views, it is hard to account for the near-consensus in macroeconomics in the post-war period and also the antagonism that met Friedman’s challenge to that consensus. In order to place his ideas in perspective, this secti ...
... Because economics is a discipline that advances through debate and diversity of views, it is hard to account for the near-consensus in macroeconomics in the post-war period and also the antagonism that met Friedman’s challenge to that consensus. In order to place his ideas in perspective, this secti ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... This section outlines the doctrine underlying policymaking in the United Kingdom during the 1970s. The documentation of UK Treasury views provided here shows that there were several aspects of UK official doctrine on inflation held consistently over 1970 to 1979 (not all completely independent proposi ...
... This section outlines the doctrine underlying policymaking in the United Kingdom during the 1970s. The documentation of UK Treasury views provided here shows that there were several aspects of UK official doctrine on inflation held consistently over 1970 to 1979 (not all completely independent proposi ...
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.