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Neoclassical Economics: Dethroning the Naked Emperor of the
Neoclassical Economics: Dethroning the Naked Emperor of the

... the past thirty-five years. – To answer these questions it is necessary to have an economic theory which makes great depressions one of the possible states in which our type of capitalist economy can find itself.‖ (p. 5) ...
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economics - The Economist Store

... say, haircuts and taxi rides in poorer parts of the world. To be sure, this will give you a fair guide to material standards of living: the Americans and the French, on average, are much richer than Indians and Ghanaians. But you may suspect, and the economist should know, that this is not the whole ...
Economic Measurements – Unit 2
Economic Measurements – Unit 2

... For each of the following situations, put the appropriate letter before the example. F if it is an example of frictional unemployment. C if it is an example of cyclical unemployment. S if it is an example of structural unemployment. 1. A computer programmer is laid off because of a recession. ___ 2. ...
Chapters 22 and 26-27 homework - Mr. Sadow`s History Class
Chapters 22 and 26-27 homework - Mr. Sadow`s History Class

... 12. Draw a potential GDP graph with economic fluctuations/business cycles. Label everything. (Chap. 17) 13. Draw two aggregate supply (AS) and aggregate demand (AD) graphs in long-run equilibrium. On one show a shift in demand (D) due to an increase in interest rates. On the other show a shift in su ...
Macroeconomic Stabilization Policy
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The Effect of Ending Hostilities on Output and Employment

... Vietnam hostilities, government purchases (in real terms) actually declined slightly (less than 1 per cent) and then stabilized for throughout the remainder of the Vietnam War (until 1975). The initial oil price shock of 1973, however, lead to rapidly rising prices which, in turned, induced a tight ...
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... With AD < LRAS, P will eventually begin to fall and SRAS will shift downward until AD = LRAS is restored. In the short-run, a decrease in AD causes a decrease in Y to the extent that P is slow to adjust. In the long-run, when P adjusts fully by definition, a decrease in AD has no effect on Y (causin ...
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... credit also helped to boost the value of property. Between 2003 and 2007, property prices rose on average by 240%. The credit boom and rapid growth of the real estate market stimulated demand for all sorts of imports, which was previously non-existent. As a result, imports greatly exceeded exports a ...
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... (costs more foreign currency) – X falls • $ appreciates – foreign goods are cheaper; M rises so net exports fall • If $ depreciates, U.S. goods cheaper (costs less foreign currency) – X rises • $ depreciates – foreign goods more expensive (costs more $) so M falls; net exports rises ...
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... BK, analyze fiscal policy in a neoclassical setting— that is, one where there are no “frictions,” which in this context means that government spending is financed by lump-sum taxes and prices are perfectly flexible.2 The first assumption provides an environment in which the government’s choice of fu ...
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Movie Theatre Attendance in Regards to Economic Factors

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Insert B, Ch 36
Insert B, Ch 36

... output increases as well. This is because input prices are fixed and output prices can adjust. If there is a decrease in aggregate demand this will cause output to fall and the price level will fall as well unless we assume that prices are rigid downward (the ratcheting effect, an assumption made in ...
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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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