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Arnold--Macro GDP
Arnold--Macro GDP

... • Peak: at the peak of the business cycle, Real GDP is at a temporary high. • Contraction: A decline in the real GDP. If it falls for two consecutive quarters, it is said to be in a recession. • Trough: The Low Point of the GDP, just before it begins to turn up. • Recovery: When the GDP is rising fr ...
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The Government Spending Multiplier in a Deep Recession

... (2011)). Most of these papers use a New-Keynesian model in which prices are set as a markup over current and future expected marginal costs and labor is hired on a frictionless spot market. However, I show that this model (even using the full, non-linear solution) cannot reproduce the observed asymm ...
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Real estate to lag behind the economy in 2015,

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... recession remained constant3. The recessions of early 1990s and 2000s were actually mild and short; however, the recent global crisis called “the great recession”, which was the most severe recession in the post-war period, brought back the issue of predicting recessions into the focus of academic r ...
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... CIT, though here they are endogenous. The causal factor is a Sudden Stop which leads to devaluation and a fall in productivity of currently installed plant and equipment. “Sharp nominal (and real) currency devaluation in the presence of Liability Dollarisation may have worked in Emerging Markets as ...
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... Before looking at what the two crises have in common, it is necessary to note their major differences. Obviously, the two crises wreaked havoc on human society in different degrees. In terms of initial impacts, the Great Depression of 1929 caused much greater losses to GDP and business than the pres ...
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From Recession to Recovery: How Soon and How

... financial, external, fiscal policy, monetary policy, and oil price shocks.11 The objective of this exercise is to determine whether there have been important differences between the recessions associated with financial crises and those associated with other shocks. In addition, this section examines ...
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From Recession to Recovery

... financial, external, fiscal policy, monetary policy, and oil price shocks.11 The objective of this exercise is to determine whether there have been important differences between the recessions associated with financial crises and those associated with other shocks. In addition, this section examines ...
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E-Growth Exercise #4 Answers

... Finally, with fewer people and workers, output per worker is larger. How did the change in research and development spending affect the standard of living? More research and development improves the available technology so that workers and other factors become more productive. This increases output. ...
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Recession

In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
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