Study Question File
... A) fall to E1 causing output to rise and unemployment would be temporary. B) rise to E0 causing output to rise and unemployment would be temporary. C) rise to A causing output to fall and unemployment would be temporary. D) fall to A causing output to fall and unemployment would be permanently incre ...
... A) fall to E1 causing output to rise and unemployment would be temporary. B) rise to E0 causing output to rise and unemployment would be temporary. C) rise to A causing output to fall and unemployment would be temporary. D) fall to A causing output to fall and unemployment would be permanently incre ...
88353b6d2ff519d
... A) Keynes had "neglected to take account of the drag on prosperity which can be exercised by an insufficiency of effective demand." B) Macro equilibrium might start out badly and get worse in the absence of government intervention. C) Flexible wages and prices allow a laissez-faire economy to adjust ...
... A) Keynes had "neglected to take account of the drag on prosperity which can be exercised by an insufficiency of effective demand." B) Macro equilibrium might start out badly and get worse in the absence of government intervention. C) Flexible wages and prices allow a laissez-faire economy to adjust ...
World of Work Report 2012
... labour market imbalances are becoming more structural, and therefore more difficult to eradicate. Certain groups, such as the long-term unemployed, are at risk of exclusion from the labour market. This means that they would be unable to obtain new employment even if there were a strong recovery. In ...
... labour market imbalances are becoming more structural, and therefore more difficult to eradicate. Certain groups, such as the long-term unemployed, are at risk of exclusion from the labour market. This means that they would be unable to obtain new employment even if there were a strong recovery. In ...
- Wiley Online Library
... in preferences. The goal facing most researchers is how to decompose the observed gender wage gap of employed men and women into differences in preferences and constraints. This decomposition is important for policy. If women would have received a higher wage by working full-time but did not choose ...
... in preferences. The goal facing most researchers is how to decompose the observed gender wage gap of employed men and women into differences in preferences and constraints. This decomposition is important for policy. If women would have received a higher wage by working full-time but did not choose ...
Measuring Decent Work with Statistical Indicators
... her country, occupation or skill level, has a notion of what decency at work stands for. Since work is a major part of life in terms of total time, social integration and individual self-esteem, decent work is clearly a fundamental dimension of the quality of life. Productive work is also the main s ...
... her country, occupation or skill level, has a notion of what decency at work stands for. Since work is a major part of life in terms of total time, social integration and individual self-esteem, decent work is clearly a fundamental dimension of the quality of life. Productive work is also the main s ...
Can global economic conditions explain low New Zealand inflation? AN2015/03
... Figure 1 breaks down the contribution of tradables and non-tradables inflation to CPI inflation. The deviation of annual CPI inflation from its long-term average is presented in the black line. The contribution tradables inflation makes to this total deviation from average is presented in the grey b ...
... Figure 1 breaks down the contribution of tradables and non-tradables inflation to CPI inflation. The deviation of annual CPI inflation from its long-term average is presented in the black line. The contribution tradables inflation makes to this total deviation from average is presented in the grey b ...
Slide 1
... policy has a much harder time dealing with supply shocks than with demand shocks. The reason the Federal Reserve was having a hard time in 2008, as described in the opening story, was the fact that in early 2008 the U.S. economy was in a recession partially caused by a supply shock (although it was ...
... policy has a much harder time dealing with supply shocks than with demand shocks. The reason the Federal Reserve was having a hard time in 2008, as described in the opening story, was the fact that in early 2008 the U.S. economy was in a recession partially caused by a supply shock (although it was ...
DOC - unece
... consequences of international migration from an economic perspective. International labour migration is, to a large extent, motivated by differences in wages and other sources of income across countries. Individuals or private households, which bear the non-negligible cost of moving, expect that the ...
... consequences of international migration from an economic perspective. International labour migration is, to a large extent, motivated by differences in wages and other sources of income across countries. Individuals or private households, which bear the non-negligible cost of moving, expect that the ...
Sample Chapter 13
... in which nominal wages (and other resource prices) match changes in the price level, and the short run, a period in which nominal wages (and other resource prices) do not respond to price-level changes. So the long and short runs vary by degree of wage adjustment, not by a set length of time such as ...
... in which nominal wages (and other resource prices) match changes in the price level, and the short run, a period in which nominal wages (and other resource prices) do not respond to price-level changes. So the long and short runs vary by degree of wage adjustment, not by a set length of time such as ...
The Information Content of Inflationary Expectations Derived from
... uses the information available to it. As part of the analysis, we will try to clarify the point that the existence of strong correlation between inflationary expectations and past or present inflation in itself does not prove that expectations are formed adaptively and furthermore that such correlat ...
... uses the information available to it. As part of the analysis, we will try to clarify the point that the existence of strong correlation between inflationary expectations and past or present inflation in itself does not prove that expectations are formed adaptively and furthermore that such correlat ...
NBER WORKING PAPER SERIES RECONCILING POLICY DECISIONS AND DATA OUTCOMES
... fact that, instead of continuing the 1969−70 framework, U.S. policy thinking “went British,” with cost-push ideas becoming dominant at the most senior policy levels from late 1970. As Milton Friedman (1979a) observed, “Ever since the founding of the colonies in the New World, Britain has been a maj ...
... fact that, instead of continuing the 1969−70 framework, U.S. policy thinking “went British,” with cost-push ideas becoming dominant at the most senior policy levels from late 1970. As Milton Friedman (1979a) observed, “Ever since the founding of the colonies in the New World, Britain has been a maj ...
Chapter 24: Aggregate Demand, Aggregate Supply, and Inflation
... • Inventory investment -- Change in Business Inventories ...
... • Inventory investment -- Change in Business Inventories ...
Abstract for AEA Meetings 1997 - American Economic Association
... i.e., when the upward shift in their marginal revenue curves with the increase in demand more than compensates for the upward shift in their marginal cost curves with the higher factor prices. In sum, increases in some market-clearing factor prices during the course of an economic expansion are cons ...
... i.e., when the upward shift in their marginal revenue curves with the increase in demand more than compensates for the upward shift in their marginal cost curves with the higher factor prices. In sum, increases in some market-clearing factor prices during the course of an economic expansion are cons ...
Inflation dynamics, marginal cost, and the output gap:
... confines of the current generation of models, the most one can say in favor of gapbased NKPCs is that they should perform no worse than cost-based NKPCs. This is because, in these models, monetary policy only affects inflation by affecting current and prospective marginal cost. However, there are so ...
... confines of the current generation of models, the most one can say in favor of gapbased NKPCs is that they should perform no worse than cost-based NKPCs. This is because, in these models, monetary policy only affects inflation by affecting current and prospective marginal cost. However, there are so ...
ppt
... Are We There Yet? What the Long Run Really Means • Because the economy always tends to return to potential output in the long run, actual aggregate output fluctuates around potential output, rarely getting too far from it. • As a result, the economy’s rate of growth over long periods—say, decades—is ...
... Are We There Yet? What the Long Run Really Means • Because the economy always tends to return to potential output in the long run, actual aggregate output fluctuates around potential output, rarely getting too far from it. • As a result, the economy’s rate of growth over long periods—say, decades—is ...
2. A More Realistic Aggregate Demand
... upward sloping short-run aggregate supply curves is justified on the basis that many factor prices, especially wages, are set by either explicit or implicit contracts in the short run. If it is also assumed that output prices are usually more flexible than input prices, and that price expectations h ...
... upward sloping short-run aggregate supply curves is justified on the basis that many factor prices, especially wages, are set by either explicit or implicit contracts in the short run. If it is also assumed that output prices are usually more flexible than input prices, and that price expectations h ...
Review Questions and Answers for Chapter 11
... economy? Why can’t the supply and demand model for a single product explain developments in the economy? The basic reason for an aggregate model is that there are thousands of individual products in an economy. Single product supply and demand model does not explain: (1) why prices in general rise o ...
... economy? Why can’t the supply and demand model for a single product explain developments in the economy? The basic reason for an aggregate model is that there are thousands of individual products in an economy. Single product supply and demand model does not explain: (1) why prices in general rise o ...
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.