The World Economy Today
... The average rate of growth was 3.9% per year. The average unemployment rate was 4.9%. The average inflation rate was 1.8%. High productivity growth: New economy? dot.com bubble … prelude to housing bubble ...
... The average rate of growth was 3.9% per year. The average unemployment rate was 4.9%. The average inflation rate was 1.8%. High productivity growth: New economy? dot.com bubble … prelude to housing bubble ...
Multiple-choicefrågor till tentamen i makroekonomi to 27 april 2006
... 1. If the CPI (=consumper price index) in 2006 was 100 and in 2007 was 104.5, and your nominal hourly wage was 110 kronor in 2006 and was 112 in 2007. What was the inflation rate between 2006 and 2007? By how many percent did the nominal wage increase? How the real wage develop, in percentage terms. ...
... 1. If the CPI (=consumper price index) in 2006 was 100 and in 2007 was 104.5, and your nominal hourly wage was 110 kronor in 2006 and was 112 in 2007. What was the inflation rate between 2006 and 2007? By how many percent did the nominal wage increase? How the real wage develop, in percentage terms. ...
UNIT 9 : Economics
... technologies have sprung-up. These changes may be caused by a variety of factors such as international competition, advances in technology, changing tastes and fashions, increased incomes and so on, but the result is the same, some industries decline and the workers in those industries become unempl ...
... technologies have sprung-up. These changes may be caused by a variety of factors such as international competition, advances in technology, changing tastes and fashions, increased incomes and so on, but the result is the same, some industries decline and the workers in those industries become unempl ...
Inflation
... bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the orig ...
... bond prices generally fall as interest rates rise, and the current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity and increased price volatility. Bond investments may be worth more or less than the orig ...
Macro economics 101
... Nominal variables – variables measured in monetary units e.g. price of corn, nominal GDP Real variables – variables measured in constant units e.g. amount of corn produced, real GDP Classical dichotomy – theoretical separation of nominal and real variables Monetary neutrality – proposition that chan ...
... Nominal variables – variables measured in monetary units e.g. price of corn, nominal GDP Real variables – variables measured in constant units e.g. amount of corn produced, real GDP Classical dichotomy – theoretical separation of nominal and real variables Monetary neutrality – proposition that chan ...
Chapter 5: Monitoring Jobs and Inflation
... – Some unemployment is “natural” • Even when economy is operating at capacity, there are new entrants who must search for jobs • In 2008, more than 3 million new workers entered the labor force and more than 2.5 million workers retired in U.S. ...
... – Some unemployment is “natural” • Even when economy is operating at capacity, there are new entrants who must search for jobs • In 2008, more than 3 million new workers entered the labor force and more than 2.5 million workers retired in U.S. ...
- Glenmede
... For holders of fixed-income securities, any rise in inflation is not good. In the best-case scenario, even a mid-single-digit rise could lead to negative real yields. At relatively low inflation of 2 percent, for example, many Treasury bonds would offer zero or even negative yields. Those awaiting a ...
... For holders of fixed-income securities, any rise in inflation is not good. In the best-case scenario, even a mid-single-digit rise could lead to negative real yields. At relatively low inflation of 2 percent, for example, many Treasury bonds would offer zero or even negative yields. Those awaiting a ...
Inflation: Islamic and Conventional Economic Systems
... When money supply increases people have more money than they desire. They, consequently, spend the extra money. Since goods and services are constant the prices will go up. It is also possible for the consumers to be responsible for monetary expansion and inflation. This may happen if foreign remitt ...
... When money supply increases people have more money than they desire. They, consequently, spend the extra money. Since goods and services are constant the prices will go up. It is also possible for the consumers to be responsible for monetary expansion and inflation. This may happen if foreign remitt ...
Midterm Exam 1 Answers
... e) cannot be determined with the information given. 6. Which of the following $1,000 face-value securities has the highest yield to maturity? a) A 5 percent coupon bond selling for $1,000 b) A 10 percent coupon bond selling for $1,000 c) A 12 percent coupon bond selling for $1,000 d) A 12 percent co ...
... e) cannot be determined with the information given. 6. Which of the following $1,000 face-value securities has the highest yield to maturity? a) A 5 percent coupon bond selling for $1,000 b) A 10 percent coupon bond selling for $1,000 c) A 12 percent coupon bond selling for $1,000 d) A 12 percent co ...
Unit 3 concept objectives outline
... with international trade. Give an example of supply-side fiscal policy and three possible positive effects from it. Explain and recognize graphically how crowding out and inflation can reduce the effectiveness of fiscal policy. Give two examples of complications that may arise when fiscal policy int ...
... with international trade. Give an example of supply-side fiscal policy and three possible positive effects from it. Explain and recognize graphically how crowding out and inflation can reduce the effectiveness of fiscal policy. Give two examples of complications that may arise when fiscal policy int ...
國立嘉義大學九十七學年度
... (16) Which of the following changes causes reported GDP to increase when, in fact, total production is unchanged? A) A shift from household production to market production. B) The legalization of previously illegal activities. C) Neither of the above will cause reported GDP to increase when total pr ...
... (16) Which of the following changes causes reported GDP to increase when, in fact, total production is unchanged? A) A shift from household production to market production. B) The legalization of previously illegal activities. C) Neither of the above will cause reported GDP to increase when total pr ...
Causes of Inflation
... supply side policies include education to make workers more attractive to employers. Supply side reforms also increase long-term growth. This increased supply of goods and services requires more workers, increasing employment. It is argued that supply side policies, which include cutting taxes on bu ...
... supply side policies include education to make workers more attractive to employers. Supply side reforms also increase long-term growth. This increased supply of goods and services requires more workers, increasing employment. It is argued that supply side policies, which include cutting taxes on bu ...
Nominal GDP Targeting Bennett McCallum Tepper School of
... that is, the difference between actual output and its “natural” value (which would be forthcoming if it were not for certain frictions, including primarily “price level stickiness,” i.e., slow adjustment of prices to changes in macroeconomic conditions). To focus on nominal GDP growth is only one w ...
... that is, the difference between actual output and its “natural” value (which would be forthcoming if it were not for certain frictions, including primarily “price level stickiness,” i.e., slow adjustment of prices to changes in macroeconomic conditions). To focus on nominal GDP growth is only one w ...
Chapter 15 Gross Domestic Product
... price level resulting from an increase in the cost of production ...
... price level resulting from an increase in the cost of production ...
Ch33 - OCCC.edu
... predictable. So, based on this idea you simply need to increase money supply to the correct level in order to avoid inflation and unemployment. -Buoyed by Milton Friedman in the 50’s and 60’s monetarists argued that it is not necessary to follow interest rate to keep the economy going, but to rather ...
... predictable. So, based on this idea you simply need to increase money supply to the correct level in order to avoid inflation and unemployment. -Buoyed by Milton Friedman in the 50’s and 60’s monetarists argued that it is not necessary to follow interest rate to keep the economy going, but to rather ...
AP Macro Crash Course ppt
... • Includes money spent to fight crime-more police officers, more jails, etc… ...
... • Includes money spent to fight crime-more police officers, more jails, etc… ...
Y - The University of Chicago Booth School of Business
... Deflation can make borrowers - either consumers or firms, worse off. As we saw early in the course, unexpected inflation makes borrowers better off. They expected to pay a certain real rate and when inflation is higher and the nominal rate is fixed, the real rate they pay is lower (in terms of lost ...
... Deflation can make borrowers - either consumers or firms, worse off. As we saw early in the course, unexpected inflation makes borrowers better off. They expected to pay a certain real rate and when inflation is higher and the nominal rate is fixed, the real rate they pay is lower (in terms of lost ...
Macro1 Exercise #4
... Make sure that you have read the “Macro1 Manual” and SimEcon® Operation Instructions”. These materials may be found at the Class Web site prior to beginning the exercise. For many of the exercise’s questions, it will be necessary to refer to those instructions. For many of the exercise’s questions, ...
... Make sure that you have read the “Macro1 Manual” and SimEcon® Operation Instructions”. These materials may be found at the Class Web site prior to beginning the exercise. For many of the exercise’s questions, it will be necessary to refer to those instructions. For many of the exercise’s questions, ...
Chapter 6-The Business Cycle
... demand on the part of consumers while firms are unable to expand output beyond their productive capacity. This is referred to as demand pull inflation. During the late 1960's, the United States experienced a period of high economic activity brought about by overall economic growth and the Vietnam wa ...
... demand on the part of consumers while firms are unable to expand output beyond their productive capacity. This is referred to as demand pull inflation. During the late 1960's, the United States experienced a period of high economic activity brought about by overall economic growth and the Vietnam wa ...
Document
... Mrs Thatcher introduced revolutionary economic policies which had a deep impact on the UK economy. In the early years of the 1980s, Mrs Thatcher embarked on a policy of Monetarism. This involved trying to target the money supply to reduce inflation by increasing interest rates sharply. Ronald Reagan ...
... Mrs Thatcher introduced revolutionary economic policies which had a deep impact on the UK economy. In the early years of the 1980s, Mrs Thatcher embarked on a policy of Monetarism. This involved trying to target the money supply to reduce inflation by increasing interest rates sharply. Ronald Reagan ...
Inflation
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. The opposite of inflation is deflation.Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future.Inflation also has positive effects: Fundamentally, inflation gives everyone an incentive to spend and invest, because if they don't, their money will be worth less in the future. This increase in spending and investment can benefit the economy. However it may also lead to sub-optimal use of resources. Inflation reduces the real burden of debt, both public and private. If you have a fixed-rate mortgage on your house, your salary is likely to increase over time due to wage inflation, but your mortgage payment will stay the same. Over time, your mortgage payment will become a smaller percentage of your earnings, which means that you will have more money to spend. Inflation keeps nominal interest rates above zero, so that central banks can reduce interest rates, when necessary, to stimulate the economy. Inflation reduces unemployment to the extent that unemployment is caused by nominal wage rigidity. When demand for labor falls but nominal wages do not, as typically occurs during a recession, the supply and demand for labor cannot reach equilibrium, and unemployment results. By reducing the real value of a given nominal wage, inflation increases the demand for labor, and therefore reduces unemployment.Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like ""pushing on a string"". Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.Today, most economists favor a low and steady rate of inflation. Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.