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MARK SCHEME
MARK SCHEME

Booms and Banking Crises
Booms and Banking Crises

... in the interbank market. We show that there is a threshold value of interest rates below which the interbank market freezes, corporate credit collapses and the economy tanks. This threshold can be alternatively expressed in terms of the level of banking assets relative to the level of productivity ( ...
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Exercises for Chapter 23
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... U.S. government purchases increase by $30,000 and U.S. net exports decrease by $30,000. U.S. GNP increases by $30,000, but U.S. GDP is unaffected. 12. Which of the following statements about GDP is most accurate? a. Nominal GDP values production at current prices, while real GDP values production at ...
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... of 2009 brought a coalition government into power on a reform agenda that seeks closer approximation to the EU and aims at turning around the previous growth model that was relied heavily on the inflow of remittances. These political developments have allowed a speeding up of the scaling up of bilat ...
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... time, inflation rose dramatically, from 3 percent in 1973 to nearly 12 percent in 1975. What is the appropriate policy response in this sort of situation? It depends! The immediate cause of the episode was a tripling of the price of oil, from $3.56 to $11.16 a barrel. That’s a huge inflation shock. ...
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... GDP is the most widely used measure of a nation’s economic performance. GDP is the market value of all final goods produced in the U.S. during a period of time regardless of who owns the factors of production. ...
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... 23) Statistics Canada excludes from GDP the value of goods and services exchanged ʺunder the counterʺ because A) satisfactory methods for their measurement have not been developed. B) these goods are all intermediate goods. C) their production has zero opportunity cost. D) Statistics Canada is respo ...
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... opening of trade for foreign manufactures, could …nd a latent, potential demand on the part of the surplus disposers6 , who were ready to spend their surplus in those goods, renouncing to some of their servants. Since, as noted, this type of demand was almost unbounded, landlords had an incentive to ...
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Advanced Placement Macroeconomics Study Notes

... reaches its cyclical peaks in the middle of a recession. It also tends to decline at the beginning of an expansion as firms meet their sales demand from excess inventories. 4. Consumer installment credit outstanding to personal income: This measures the relationship between consumer debt and income. ...
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Lessons from Experience with Ex-ante Poverty Impact Assessments

... considering the economy as a whole. • These models can take into account the direct and indirect effects of a policy reform. • It is used as an analytical and simulation instrument, and integrates the data of all aggregate sectors of the economy (production, labor market, external indebtness and its ...
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Non-monetary economy

The non-monetary economy represents work such as household labor, care giving and civic activity that does not have a monetary value but remains a vitally important part of the economy. With respect to the current economic situation labor that results in monetary compensation becomes more highly valued than unpaid labor. Yet nearly half of American productive work goes on outside of the market economy and is not represented in production measures such as the GDP (Gross Domestic Product).The non-monetary economy seeks to reward and value work that benefits society (whether through producing services, products, or making investments) that the monetary economy does not recognize. An economic as well as a social imperative drives the work done in this economy. This method of valuing work would challenge ways in which unemployment and the labor force are all currently measured and generally restructure the way in which labor and work are constructed in America.The non-monetary economy also works to make the labor market more inclusive by valuing previously ignored forms of work. Some acknowledge the non-monetary economy as having a moral or socially conscious philosophy that attempts to end social exclusion by including poor and unemployed individuals economic opportunities and access to services and goods. Such community-based and grassroots movements encourage the community to be more participatory, thus providing a more democratic economic structures.Much of non-monetary work is categorized as either civic work or housework. These two types of work are critical to the operation of daily life and are largely taken for granted and undervalued. Both of these categories encompass many different types of work and are discussed below.It is important to point the microscope on these two areas because only certain people are very civically engaged and very frequently a certain group of people tend to do housework. Non-monetary economic systems hope to make community members more active, thus more democratic with more balanced representation, and to value housework that is commonly done by women and less valued.
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