Sticky Wage, Efficiency Wage, and Keynesian Unemployment*
... I begin my analyses by noting that workers will change their efforts endogenously in response to unexpected negative shocks. This argument is based on the fundamental insight of the efficiency wage theory that workers’ effort is determined by the unemployment rate and the real wage rate. (For exampl ...
... I begin my analyses by noting that workers will change their efforts endogenously in response to unexpected negative shocks. This argument is based on the fundamental insight of the efficiency wage theory that workers’ effort is determined by the unemployment rate and the real wage rate. (For exampl ...
I. Introduction to basic economic problems
... Individuals specialize and trade with each other rather than producing all the goods and services they wish to consume for themselves. Most people sell their labour and buy goods and services. Nations also specialize and trade with each other. Trade permits higher levels of consumption than self-suf ...
... Individuals specialize and trade with each other rather than producing all the goods and services they wish to consume for themselves. Most people sell their labour and buy goods and services. Nations also specialize and trade with each other. Trade permits higher levels of consumption than self-suf ...
101130 New Vision of Central Banks - Bankovní institut
... The International Monetary Fund (IMF) has for many years provided the Financial Sector Assessment Programs (FSAPs). In line with the FSAPs, the IMF has offered a unique experience in providing technical assistance for its member countries. The FSAPs, with a high quality of technical assistance, will ...
... The International Monetary Fund (IMF) has for many years provided the Financial Sector Assessment Programs (FSAPs). In line with the FSAPs, the IMF has offered a unique experience in providing technical assistance for its member countries. The FSAPs, with a high quality of technical assistance, will ...
Optimum International Policies for the World Depression 1929-1933
... unpredictable shocks to the world economy will continue. Policies and institutions are needed to dampen such impulses. The present paper examines whether the coordination of international economic policy in the face of the shocks that precipitated the world depression could have alleviated or avoide ...
... unpredictable shocks to the world economy will continue. Policies and institutions are needed to dampen such impulses. The present paper examines whether the coordination of international economic policy in the face of the shocks that precipitated the world depression could have alleviated or avoide ...
Macroeconomic equilibrium
... If aggregate demand is at the level shown in Figure 16.8, then equilibrium will occur at a real output level of Y, with a price level of P. As noted in the previous chapter, aggregate supply can be perfectly elastic because of the existence of spare capacity, with high levels of unused factors of pr ...
... If aggregate demand is at the level shown in Figure 16.8, then equilibrium will occur at a real output level of Y, with a price level of P. As noted in the previous chapter, aggregate supply can be perfectly elastic because of the existence of spare capacity, with high levels of unused factors of pr ...
This PDF is a selection from a published volume from... Economic Research
... make no adjustment for sickness leave and other factors just mentioned, they overstate Sweden’s aggregate labor input. The OECD (2005, 82) estimates that the number of persons actually at work in Sweden is 10 percentage points lower than the employment rate for men and 15 percentage points lower for ...
... make no adjustment for sickness leave and other factors just mentioned, they overstate Sweden’s aggregate labor input. The OECD (2005, 82) estimates that the number of persons actually at work in Sweden is 10 percentage points lower than the employment rate for men and 15 percentage points lower for ...
Paper - History of Economic Thought Society of Australia
... lose its real value). A $5 billion piece of Social Security package was also enacted; minimum monthly benefits of individuals employed in low income positions for at least 3 decades were raised. Increases were also made to the pensions of 3.8 million widows. The food stamp program by 1975 more than ...
... lose its real value). A $5 billion piece of Social Security package was also enacted; minimum monthly benefits of individuals employed in low income positions for at least 3 decades were raised. Increases were also made to the pensions of 3.8 million widows. The food stamp program by 1975 more than ...
FRBSF L CONOMIC
... through the 1990s, when Social Security, pension, and retiree health benefits increased substantially and conditions were generally favorable for early retirement. However, in the 1990s, as the value of those retirement programs eroded, older workers reversed the downward trend. Since then, their la ...
... through the 1990s, when Social Security, pension, and retiree health benefits increased substantially and conditions were generally favorable for early retirement. However, in the 1990s, as the value of those retirement programs eroded, older workers reversed the downward trend. Since then, their la ...
Aggregate Demand and Aggregate Supply
... • The Real Balance effect states that the inverse relationship between the price level and the quantity demanded of Real GDP is established through changes in the value of monetary wealth. • A fall in the price level causes purchasing power to rise, which increases a person’s Monetary Wealth. As peo ...
... • The Real Balance effect states that the inverse relationship between the price level and the quantity demanded of Real GDP is established through changes in the value of monetary wealth. • A fall in the price level causes purchasing power to rise, which increases a person’s Monetary Wealth. As peo ...
Chapter 20: Aggregate Expenditure and Equilibrium Output
... Assume consumption is represented by the following: C = 200 + .75Y. Also assume that planned investment (I) equals 300. (a) Given the information, calculate the equilibrium level of income. (b) Given the information, calculate the level of consumption and saving that occurs at the equilibrium level ...
... Assume consumption is represented by the following: C = 200 + .75Y. Also assume that planned investment (I) equals 300. (a) Given the information, calculate the equilibrium level of income. (b) Given the information, calculate the level of consumption and saving that occurs at the equilibrium level ...
Working Paper
... The post Bretton Woods international monetary arrangements have been asymmetric. Typically, some countries maintain a system of -more or less- fixed parities among themselves while, at the same time, allowing the external value of their currencies to move freely against currencies that do not belong ...
... The post Bretton Woods international monetary arrangements have been asymmetric. Typically, some countries maintain a system of -more or less- fixed parities among themselves while, at the same time, allowing the external value of their currencies to move freely against currencies that do not belong ...
MEDIUM T MEDIUM TERM PROGRAMME MEDIUM T
... emerging and developing economies and the current situation in these economies differs. Factors such as declining global trade, slowdown of the Chinese economy and fluctuations in commodity prices cause below potential growth rates in these economies. 13. High volume of capital outflows and tighter ...
... emerging and developing economies and the current situation in these economies differs. Factors such as declining global trade, slowdown of the Chinese economy and fluctuations in commodity prices cause below potential growth rates in these economies. 13. High volume of capital outflows and tighter ...
Aalborg Universitet Making Capitalism Work Schmidt, Johannes Dragsbæk; Hersh, Jacques
... the West European arena and more reluctantly in the case of East Asia) differences in adjustment can still be perceived as far as the speed and scope of this deconstruction is concerned. Consequently, in order to understand the roots and nature of these differences, attention must be paid to the var ...
... the West European arena and more reluctantly in the case of East Asia) differences in adjustment can still be perceived as far as the speed and scope of this deconstruction is concerned. Consequently, in order to understand the roots and nature of these differences, attention must be paid to the var ...
GDP - McEachern High School
... What about a Nissan pickup truck made in Tennessee— whose GDP? American GDP. ...
... What about a Nissan pickup truck made in Tennessee— whose GDP? American GDP. ...
THE ZIMBABWEAN ECONOMY
... country risk premium to facilitate access to finance), and supporting public services (energy, water, transportation) are more likely to be effective in the medium-term. • Stronger policies in mining and agricultural sectors would also stimulate international demand for manufactured goods and the es ...
... country risk premium to facilitate access to finance), and supporting public services (energy, water, transportation) are more likely to be effective in the medium-term. • Stronger policies in mining and agricultural sectors would also stimulate international demand for manufactured goods and the es ...
PDF - Center For Global Development
... many Liberians. But of course relative to the vast needs of the majority of Liberians, progress was limited and perhaps more could have been achieved. In any case the situation is clearly bleak for many, as recognized in the government’s Agenda for Transformation (AfT). At least half of Liberia’s po ...
... many Liberians. But of course relative to the vast needs of the majority of Liberians, progress was limited and perhaps more could have been achieved. In any case the situation is clearly bleak for many, as recognized in the government’s Agenda for Transformation (AfT). At least half of Liberia’s po ...
Recommending a Strategy - Chinese University of Hong Kong
... Europe to Asia, including both East Asia and South Asia. The East Asian and South Asian economies have become partially de-coupled from the rest of the World economy, as evidenced by the strong performance of China, India and other East Asian economies during the 2007-2009 global financial crisis ...
... Europe to Asia, including both East Asia and South Asia. The East Asian and South Asian economies have become partially de-coupled from the rest of the World economy, as evidenced by the strong performance of China, India and other East Asian economies during the 2007-2009 global financial crisis ...
Document
... Unlike Mr. Delaney, Rosa Moore's main objective is to eat at home so she can save money for her retirement. To Ms. Moore, maximizing her utility means saving for her retirement. The fact that she has excess funds after consumption and newly built residential investment makes her a SSU. Maximizing hi ...
... Unlike Mr. Delaney, Rosa Moore's main objective is to eat at home so she can save money for her retirement. To Ms. Moore, maximizing her utility means saving for her retirement. The fact that she has excess funds after consumption and newly built residential investment makes her a SSU. Maximizing hi ...
Krugman-Obstfeld-ch10
... begun to develop significant exports of light manufactures like textiles. Copyright © 2003 Pearson Education, Inc. ...
... begun to develop significant exports of light manufactures like textiles. Copyright © 2003 Pearson Education, Inc. ...
The Short Run
... is that it is the percentage difference between actual and potential output. It’s positive when the economy is booming, and negative when the economy is slumping. A recession is a period when actual output falls below potential, so that short-run output becomes negative. 4. In the slump associated w ...
... is that it is the percentage difference between actual and potential output. It’s positive when the economy is booming, and negative when the economy is slumping. A recession is a period when actual output falls below potential, so that short-run output becomes negative. 4. In the slump associated w ...
problem set 4 - Shepherd Webpages
... short-run aggregate supply curve shifts. Draw a separate graph to illustrate each situation (Mark the initial equilibrium so that all three curves cross at the full-employment output). Show clearly what happens to the inflation rate and real output/income in the short-run. a. A decrease in consumpti ...
... short-run aggregate supply curve shifts. Draw a separate graph to illustrate each situation (Mark the initial equilibrium so that all three curves cross at the full-employment output). Show clearly what happens to the inflation rate and real output/income in the short-run. a. A decrease in consumpti ...
(DOC, Unknown)
... economy's capacity to produce will be diminished. If, on the other hand, too much is saved and too little spent, there will be more money available for investment than can possibly be used and not enough people will buy what is produced. Investment, as defined by economist Paul A. Samuelson, is capi ...
... economy's capacity to produce will be diminished. If, on the other hand, too much is saved and too little spent, there will be more money available for investment than can possibly be used and not enough people will buy what is produced. Investment, as defined by economist Paul A. Samuelson, is capi ...
- Office for National Statistics
... the income they actually have in their pockets after deductions such as income tax or pension contributions – this measure is household disposable income. To allow for true international comparisons, in this section household disposable income is adjusted for services provided by government such as ...
... the income they actually have in their pockets after deductions such as income tax or pension contributions – this measure is household disposable income. To allow for true international comparisons, in this section household disposable income is adjusted for services provided by government such as ...