ECON 201: Introduction to Macroeconomics Professor Robert
... A) In both cases, individual behavior has large negative consequences for the whole of society. B) In both cases, seemingly bad behavior ends up harming everyone. C) In both cases, seemingly careless behavior leads to good times for all. D) In both cases, government intervention can only make matter ...
... A) In both cases, individual behavior has large negative consequences for the whole of society. B) In both cases, seemingly bad behavior ends up harming everyone. C) In both cases, seemingly careless behavior leads to good times for all. D) In both cases, government intervention can only make matter ...
Sample Exam Questions (CETA 2006) File
... During the later part of 2005 inflationary pressures resulted in the inflation rate exceeding the inflation target. The Reserve Bank responded by raising the OCR. ...
... During the later part of 2005 inflationary pressures resulted in the inflation rate exceeding the inflation target. The Reserve Bank responded by raising the OCR. ...
Mankiw 6e PowerPoints
... Lucas pointed out that such predictions would not be valid if the policy change alters expectations in a way that changes the fundamental relationships between variables. CHAPTER 15 ...
... Lucas pointed out that such predictions would not be valid if the policy change alters expectations in a way that changes the fundamental relationships between variables. CHAPTER 15 ...
E719_No03_Chapter02
... The consumer price index (CPI) is another price index (like the GDP deflator). It differs in the goods included to measure price changes as well as in the method of calculation. Its measurement is based on the change in the cost of a standard (base year) bundle of consumer goods over time. Percentag ...
... The consumer price index (CPI) is another price index (like the GDP deflator). It differs in the goods included to measure price changes as well as in the method of calculation. Its measurement is based on the change in the cost of a standard (base year) bundle of consumer goods over time. Percentag ...
ECONOMICS why study it?
... begin when unemployment rate is above the natural rate of unemployment. In fact, the natural rate of unemployment is defined as the rate of unemployment at which the inflation rate remains constant. Another way of defining the natural rate of unemployment is to simply tie it to the level of real GDP ...
... begin when unemployment rate is above the natural rate of unemployment. In fact, the natural rate of unemployment is defined as the rate of unemployment at which the inflation rate remains constant. Another way of defining the natural rate of unemployment is to simply tie it to the level of real GDP ...
Sample Exam Questions - word 2003 File
... During the later part of 2005 inflationary pressures resulted in the inflation rate exceeding the inflation target. The Reserve Bank responded by raising the OCR. ...
... During the later part of 2005 inflationary pressures resulted in the inflation rate exceeding the inflation target. The Reserve Bank responded by raising the OCR. ...
Start with government purchases of goods and services, and with
... The interest rate thus has to do two jobs: it is supposed to both set supply and demand equal in the money market and keep the amount of investment high enough to avoid a recession. There is no guarantee that the same interest rate will accomplish both purposes. Thus we need a Federal Reserve--that ...
... The interest rate thus has to do two jobs: it is supposed to both set supply and demand equal in the money market and keep the amount of investment high enough to avoid a recession. There is no guarantee that the same interest rate will accomplish both purposes. Thus we need a Federal Reserve--that ...
Money Growth and Inflation
... nothing to do with either merit or need. •These redistributions occur because many loans in the economy are specified in terms of the unit of account—money. Summary •The overall level of prices in an economy adjusts to bring money supply and money demand into balance. •When the central bank increase ...
... nothing to do with either merit or need. •These redistributions occur because many loans in the economy are specified in terms of the unit of account—money. Summary •The overall level of prices in an economy adjusts to bring money supply and money demand into balance. •When the central bank increase ...
Inflation Report February 2006
... The fan charts depict the probability of various outcomes for CPI inflation in the future. If economic circumstances identical to today’s were to prevail on 100 occasions, the MPC’s best collective judgement is that inflation over the subsequent three years would lie within the darkest central band ...
... The fan charts depict the probability of various outcomes for CPI inflation in the future. If economic circumstances identical to today’s were to prevail on 100 occasions, the MPC’s best collective judgement is that inflation over the subsequent three years would lie within the darkest central band ...
Interest Rates on Debt Securities
... 2) Federal Funds rate - Rate one bank charges another for overnight borrowing (in order to meet reserve requirement) Fed controls this rate indirectly Sets target for Federal Funds rate Rate moves toward target in response to changes in money supply ...
... 2) Federal Funds rate - Rate one bank charges another for overnight borrowing (in order to meet reserve requirement) Fed controls this rate indirectly Sets target for Federal Funds rate Rate moves toward target in response to changes in money supply ...
Breaking Out of Stagflation into Sustained Growth
... reforms, the major cause of this current stagflation is a series of supply shocks (acute energy shortages, rising global oil prices, and unprecedented floods in the summer of 2010). These supply shocks— which have pushed the supply curve upward, seriously constraining output growth—when combined wit ...
... reforms, the major cause of this current stagflation is a series of supply shocks (acute energy shortages, rising global oil prices, and unprecedented floods in the summer of 2010). These supply shocks— which have pushed the supply curve upward, seriously constraining output growth—when combined wit ...
Chapter 27 Economic Policy
... inflation may reoccur. But careful control of spending and the money supply can reduce the likelihood of more inflation. The firms that gained efficiency may be able to maintain their position, but they-will have to work at it. So some of the gains may be erased and some may not. b. To the extent th ...
... inflation may reoccur. But careful control of spending and the money supply can reduce the likelihood of more inflation. The firms that gained efficiency may be able to maintain their position, but they-will have to work at it. So some of the gains may be erased and some may not. b. To the extent th ...
The Aggregate Demand Schedule
... helicopter drop. Ricardian Equivalence states that government bonds are not net wealth, implying that an increase in the money supply due to central bank bond purchase would also increase net wealth. But: Does Ricardian Equivalence hold? If not, bond-money swaps have less/no effect on net wealth. ...
... helicopter drop. Ricardian Equivalence states that government bonds are not net wealth, implying that an increase in the money supply due to central bank bond purchase would also increase net wealth. But: Does Ricardian Equivalence hold? If not, bond-money swaps have less/no effect on net wealth. ...
CRN 60882 Syllabus ECON 2313-002 Fall semester, 2011 Course
... announcements, links to course materials (such as PowerPoint slides used during lectures), and links to articles or other materials relevant to the course. Make-up Policy: Should a student be forced to miss an examination, the student should make every effort to notify the professor in advance of th ...
... announcements, links to course materials (such as PowerPoint slides used during lectures), and links to articles or other materials relevant to the course. Make-up Policy: Should a student be forced to miss an examination, the student should make every effort to notify the professor in advance of th ...
Monetary Policy: Can the Federal Reserve
... promote maximum sustainable production and employment and (2) to maintain stable prices in the economy. The Fed has three policy tools at its disposal: (1) the reserve requirement, (2) the discount rate (also called the primary credit rate), and (3) open-market operations. Employing any of these too ...
... promote maximum sustainable production and employment and (2) to maintain stable prices in the economy. The Fed has three policy tools at its disposal: (1) the reserve requirement, (2) the discount rate (also called the primary credit rate), and (3) open-market operations. Employing any of these too ...
Money Growth and Inflation
... How the price level is determined and why it might change over time is called the quantity theory of money. The quantity of money available in the economy determines the value of money. The primary cause of inflation is the growth in the quantity of money. ...
... How the price level is determined and why it might change over time is called the quantity theory of money. The quantity of money available in the economy determines the value of money. The primary cause of inflation is the growth in the quantity of money. ...
10 - CSUN.edu
... 3. A temporary fiscal policy shift affects employment and output, even if the government maintains a balanced budget. An intuitive explanation for this relies upon the different propensities to consume of the government and of taxpayers. If the government spends $1 more and finances this spending by ...
... 3. A temporary fiscal policy shift affects employment and output, even if the government maintains a balanced budget. An intuitive explanation for this relies upon the different propensities to consume of the government and of taxpayers. If the government spends $1 more and finances this spending by ...
Chapter 9: Monetary Policy
... demand for money because we no longer have sharply defined measures of money. As already mentioned, checking accounts now pay interest and so have become more like M2, which in turn becomes more difficult to distinguish from investments in an age of electronic transfer. Why insist on a certain rate ...
... demand for money because we no longer have sharply defined measures of money. As already mentioned, checking accounts now pay interest and so have become more like M2, which in turn becomes more difficult to distinguish from investments in an age of electronic transfer. Why insist on a certain rate ...
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.Further goals of a monetary policy are usually to contribute to economic growth and stability, to lower unemployment, and to maintain predictable exchange rates with other currencies.Monetary economics provides insight into how to craft optimal monetary policy.Monetary policy is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset values.Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.