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GDP
GDP

... the effect of inflation on the growth of GDP. … this measure is called Current Dollar GDP. ...
Ch. 5
Ch. 5

... Humanity your work doesn’t count as part of GDP. If you get paid for the same work, it counts. If you pollute during production and someone pays to clean the environment, the GDP will be higher than if the producer tried to reduce pollution during production so no clean-up was necessary. ...
The US Economy - Boyd Center for Business and Economic Research
The US Economy - Boyd Center for Business and Economic Research

... Although non-residential, or business, investment ended the year with positive growth of 1.8 percent, the trend is not encouraging. Business investment fell at an annual rate of over 18 percent in the fourth quarter of 2008, the largest such drop in over two decades. Much of this decrease is due to ...
Remarks by Chairman Ben S. Bernanke Before the Economic Club
Remarks by Chairman Ben S. Bernanke Before the Economic Club

... financially stimulative and argues for greater monetary policy restraint, all else being equal. Specifically, if spending depends on long-term interest rates, special factors that lower the spread between short-term and long-term rates will stimulate aggregate demand. Thus, when the term premium dec ...
Lecture Two: Macroeconomic Variables
Lecture Two: Macroeconomic Variables

... Net Exports: exports minus imports. Or currently produced goods and services sold to foreigners minus domestic buyers purchases of goods and services produced abroad. Imports are included in C, I, and G, and thus, must be subtracted. ...
Exiting from Low Interest Rates to Normality
Exiting from Low Interest Rates to Normality

... The consensus view on the Great Contraction is that it was brought about by the Federal Reserve’s inability to prevent four banking panics between 1930 and 1933 from precipitating a collapse of the money supply. Friedman and Schwartz (1963a) argued that had the Fed conducted open market operations a ...
Chapter 1
Chapter 1

... – It measures the value of production that takes place within a specific interval of time, usually a year or a quarter (three months) ...
Fall 2014 Economic Rulers
Fall 2014 Economic Rulers

... year are used when totaling the RGDP for all the other years too. There is only 1 reason it could increase ...
M18_Gordon8014701_12_Macro_C18
M18_Gordon8014701_12_Macro_C18

... • The economy in the 1950s looks much better in retrospect. – The 1950-53 period was dominated by effects from the Korean War. – A mild recession in 1953-54 was caused by a cut in government spending, but easy money moderated the effects on output. – 1956-57 showed the short-term Phillips Curve trad ...
paper - Institute for New Economic Thinking
paper - Institute for New Economic Thinking

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Measuring National Well-being: Economic Well-being
Measuring National Well-being: Economic Well-being

... Second, adjustments need to be made for net current transfers (for example, current international co-operation or remittances between households) from and to other countries. Making this adjustment to NNI gives Net National Disposable Income (NNDI). Third, changes in standards of living are also det ...
price level
price level

... iii. Thus higher prices don’t induce higher output. Why should it? If the price level increases, input prices (including materials and labor) also increased. iv. This also means we’re at full-employment at the LRAS. If equilibrium output didn’t match full-employment, wages would adjust so the only u ...
inflation.
inflation.

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AS/AD Model
AS/AD Model

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Answer to 2.
Answer to 2.

... (b) What is the impact of the recession on the federal budget? Explain. Answer to 1. (b): The decrease in consumption would result in a decrease in AD and a decrease in GDP. This would result in an increase in unemployment and an increase in transfer payments. Due to the job losses, there would be a ...
price inflation and gdp growth-what matters most
price inflation and gdp growth-what matters most

... producing high inflation is a government that has lost control of macroeconomic management. Macroeconomic stability exists in a country if it manages to resolve the macroeconomic crisis that emerged within a year or two, which was the case of India. Some studies argue that it is not clear whether ap ...
Economics: Principles, Applications, and Tools, 5th ed
Economics: Principles, Applications, and Tools, 5th ed

... The primary components of GDP are consumption, government spending, business investment, and net exports. Consumer spending is critical to continued growth hence the reason that consumer confidence is such a closely watched statistic. • The most recent numbers indicate that the U.S. economy has slow ...
Question - Mounds View School Websites
Question - Mounds View School Websites

... Balance of payments accounts record all of a country’s international transactions during a year. Two major subaccounts in the balance of payment are the current account and the capital financial account. In which of these subaccounts will each of the following transaction be recorded? ...
In Search of Leading Indicators of Economic
In Search of Leading Indicators of Economic

... forecasting business conditions. Copyright © 2003 John Wiley & Sons, Ltd. key words business cycles; leading indicators; turning points; Markov ...
Keynesian economics Keynesian economics (pronounced /ˈkeɪ
Keynesian economics Keynesian economics (pronounced /ˈkeɪ

... stimulus raises the market for business output, raising cash flow and profitability, spurring business optimism. To Keynes, this accelerator effect meant that government and business could be complements rather than substitutes in this situation. Second, as the stimulus occurs, gross domestic produc ...
some questions
some questions

... Recessionary Gap? Draw it. Why do economists argue that an Inflationary Gap can and will correct itself, while a Recessionary Gap will not (or will only correct itself very slowly and at considerable cost to the economy)? Draw diagrams and explain in words what will happen in these two cases to the ...
April 19, 2001 - Questions
April 19, 2001 - Questions

... (W) -$100,000 (X) none of the above By how much does the money supply change (increase [+] or decrease[-]) as a result of the open market operations described in Question 15? (A) +$2000 (B) +$4,000 (C) +$6,000 (D) +$10,000 (E) +$14,000 (F) +$15,000 (G) +$20,000 (H) +$24,000 (I) +$38,000 (J) +$40,000 ...
Chapter 15 Macro Stabilization Policy
Chapter 15 Macro Stabilization Policy

... business cycle; instead, the economy’s self-correcting mechanism is relied upon to drive the economy back to the natural level of output. B) Nonactivists suggest the government follow two fixed rules. 1. The money supply should grow at a constant rate every year. The rate should approximate the long ...
Econ 204 Topic 6
Econ 204 Topic 6

...  Equity, environment, freedom of religion/expression, unemployment, weather, etc are all factors ...
April 30
April 30

... • (2) The correlation between how loudly an American politician proclaims a belief in fiscal conservatism and how likely he is to take genuine policy steps < 0. [1] Never mind that small government is classically supposed to be the aim of “liberals,” in the 19th century definition, not “conservative ...
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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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