AP Macro Economics - Spring Branch ISD
... 14. Which one of the following will cause a movement up along an economy's saving schedule? A) an increase in household debt outstanding C) an increase in stock prices B) an increase in disposable income D) an increase in interest rates 14. In the late 1990s the U. S. stock market boomed, causing U. ...
... 14. Which one of the following will cause a movement up along an economy's saving schedule? A) an increase in household debt outstanding C) an increase in stock prices B) an increase in disposable income D) an increase in interest rates 14. In the late 1990s the U. S. stock market boomed, causing U. ...
WILLIAM H HARRISON THOMAS JEFFERSON GEORGE
... (Output equals consumption plus business investment plus government spending plus net exports. Increases in government spending, Keynesians claim, can offset decreases in the other three, especially investment.) Of course government revenues drop during recessions, so the increased spending Keynesia ...
... (Output equals consumption plus business investment plus government spending plus net exports. Increases in government spending, Keynesians claim, can offset decreases in the other three, especially investment.) Of course government revenues drop during recessions, so the increased spending Keynesia ...
The aggregate demand curve
... Average price of all the goods and services = this could be measured by the inflation rate The inflation rate is measured on the Y axis. The quantity of all the goods and services = this could be measured through the GDP The real GDP growth rate is measured on the X axis. In other words when the agg ...
... Average price of all the goods and services = this could be measured by the inflation rate The inflation rate is measured on the Y axis. The quantity of all the goods and services = this could be measured through the GDP The real GDP growth rate is measured on the X axis. In other words when the agg ...
Chapter 15 Fiscal Policy: Taxes, Spending, and the Federal Budget
... guideline for responsible government by allowing debt to rise faster than GDP through 2006. This policy will cause both interest payments relative to GDP and the tax burden to rise, although after 2006 the debt-to-GDP ratio will fall a little. The Democratic Caucus numbers show a long run violation ...
... guideline for responsible government by allowing debt to rise faster than GDP through 2006. This policy will cause both interest payments relative to GDP and the tax burden to rise, although after 2006 the debt-to-GDP ratio will fall a little. The Democratic Caucus numbers show a long run violation ...
The Consumption Function The consumption function is an equation
... Aggregate Expenditure Model Equilibrium In the previous section we described how aggregate expenditures plus unplanned investment equals GDP. What are the implications of this for the economy? For instance, if aggregate expenditures are larger than GDP, this means that unplanned inventories must be ...
... Aggregate Expenditure Model Equilibrium In the previous section we described how aggregate expenditures plus unplanned investment equals GDP. What are the implications of this for the economy? For instance, if aggregate expenditures are larger than GDP, this means that unplanned inventories must be ...
February 04, 2013
... 14. Suppose that in 2007 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2008 they produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is a) insufficient information to know b) a decrease because fewer cars w ...
... 14. Suppose that in 2007 Canada's automobile manufacturers produced 2 million cars priced at $20 000 each. And in 2008 they produced 1 million cars priced at $40 000 each. Ceteris paribus, the change in nominal national income is a) insufficient information to know b) a decrease because fewer cars w ...
08ETT Chapter 17
... Governments strive for a balance between the costs and benefits of their economic policies to promote economic stability and growth. ...
... Governments strive for a balance between the costs and benefits of their economic policies to promote economic stability and growth. ...
GDP and The Measurement of Progress
... Boom significant economic growth above the long-term trend. NBER National Bureau of Economic Research–a research organization based in Cambridge, Massachusetts, is considered the most authoritative source on identifying U.S. recessions. The official NBER definition of a recession is as follows: A re ...
... Boom significant economic growth above the long-term trend. NBER National Bureau of Economic Research–a research organization based in Cambridge, Massachusetts, is considered the most authoritative source on identifying U.S. recessions. The official NBER definition of a recession is as follows: A re ...
Slide 1
... Vertical axis: average spread over the last 20 working days; in basis points. 2 Horizontal axis. 3 Forecast for 2011. 4 Domestic government debt with a remaining maturity of 1-3 years as per cent of total domestic government debt. 5 Average change in general ...
... Vertical axis: average spread over the last 20 working days; in basis points. 2 Horizontal axis. 3 Forecast for 2011. 4 Domestic government debt with a remaining maturity of 1-3 years as per cent of total domestic government debt. 5 Average change in general ...
Chapter 15
... trigger the recession. As the recession developed, the normal workings of automatic stabilizers moved the budget into deficit, and after September 11 increased government purchases also increased aggregate demand. 4. Monetary Policy: There were no major monetary shocks prior to the start of the rece ...
... trigger the recession. As the recession developed, the normal workings of automatic stabilizers moved the budget into deficit, and after September 11 increased government purchases also increased aggregate demand. 4. Monetary Policy: There were no major monetary shocks prior to the start of the rece ...
NIPA Accounts and Econometric Intro
... Excludes intermediate goods to avoid double counting. It measures the value added at each stage of the production process. Excludes good and services produced elsewhere even if they are consumed in the economy. ...
... Excludes intermediate goods to avoid double counting. It measures the value added at each stage of the production process. Excludes good and services produced elsewhere even if they are consumed in the economy. ...
Slide 1
... • (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 ...
... • (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 ...
Homework 2
... 29. Which of the following is the best example of a stock variable? a. U.S. GDP in 2004 b. the daily sales of economics textbooks by South-Western Publishing c. Bill Gates' annual salary from Microsoft Corporation d. the total wealth of the 50 richest U.S. citizens e. U.S. government purchases duri ...
... 29. Which of the following is the best example of a stock variable? a. U.S. GDP in 2004 b. the daily sales of economics textbooks by South-Western Publishing c. Bill Gates' annual salary from Microsoft Corporation d. the total wealth of the 50 richest U.S. citizens e. U.S. government purchases duri ...
March
... • (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 ...
... • (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 ...
Unemployment - Har Wai Mun
... when aggregate output declines for two consecutive quarters. • A prolonged and deep recession becomes a depression. • Policy makers attempt not only to smooth fluctuations in output during a business cycle but also to increase the growth rate of output in the long-run. ...
... when aggregate output declines for two consecutive quarters. • A prolonged and deep recession becomes a depression. • Policy makers attempt not only to smooth fluctuations in output during a business cycle but also to increase the growth rate of output in the long-run. ...
Lecture 12: The Great Depression - personal.kent.edu
... The Short Run Supply Curve On the first point, there is considerable debate. People expected the depression to be short lived. There had been other sharp contractions, most recently at the end of World War I, which were followed by quick recovery, and many people expected this one to come to a quic ...
... The Short Run Supply Curve On the first point, there is considerable debate. People expected the depression to be short lived. There had been other sharp contractions, most recently at the end of World War I, which were followed by quick recovery, and many people expected this one to come to a quic ...
Government Spending Might Not Create Jobs, Even during
... the expenditure is financed by borrowing, then this borrowing might exert upward pressure on interest rates, which, in turn, would cause a reduction in private investment. Similarly, a surge in fiscal spending may bid up wages, thereby reducing the demand for labor in the private sector. Times of hi ...
... the expenditure is financed by borrowing, then this borrowing might exert upward pressure on interest rates, which, in turn, would cause a reduction in private investment. Similarly, a surge in fiscal spending may bid up wages, thereby reducing the demand for labor in the private sector. Times of hi ...
http://socrates
... End Result: Higher interest rates encourage consumers to spend less money causing aggregate demand to fall which leads to a lower GDP and less employment. Short Term versus Long Term Interest Rates: Open market operations influence the federal funds rate -- the interest rate that financial instituti ...
... End Result: Higher interest rates encourage consumers to spend less money causing aggregate demand to fall which leads to a lower GDP and less employment. Short Term versus Long Term Interest Rates: Open market operations influence the federal funds rate -- the interest rate that financial instituti ...
GDP Deflator versus CPI Index
... GDP Deflator vs. CPI Index • Both measure inflation but two important differences often cause them to diverge • GDP deflator reflects prices of all goods/services produced domestically – broader index than CPI but excludes imports ...
... GDP Deflator vs. CPI Index • Both measure inflation but two important differences often cause them to diverge • GDP deflator reflects prices of all goods/services produced domestically – broader index than CPI but excludes imports ...
Chapter 15 Review Questions
... 1. Economic growth can be portrayed as a: A) outward shift of the production possibilities curve. B) inward shift of the production possibilities curve. C) movement from a point on to a point inside a production possibilities curve. D) movement from one point to another point on a fixed production p ...
... 1. Economic growth can be portrayed as a: A) outward shift of the production possibilities curve. B) inward shift of the production possibilities curve. C) movement from a point on to a point inside a production possibilities curve. D) movement from one point to another point on a fixed production p ...
Recent Financial Crises
... • The currency depreciation, the reform program as well as projected global growth revival will support exports and, thus, economic growth in 2013, with GDP increasing by about 4% in 2013. • Lower fiscal expenditures will weigh on domestic demand growth but its impact should be partially offset by r ...
... • The currency depreciation, the reform program as well as projected global growth revival will support exports and, thus, economic growth in 2013, with GDP increasing by about 4% in 2013. • Lower fiscal expenditures will weigh on domestic demand growth but its impact should be partially offset by r ...
Circular Flow 2
... In that previous example, spending was sometimes greater than income. The difference between income and spending is saving (called dis-saving if negative). We will continue to use the same example. As shown in the last slide . . . If Y = $400m, C will be $360m. ...
... In that previous example, spending was sometimes greater than income. The difference between income and spending is saving (called dis-saving if negative). We will continue to use the same example. As shown in the last slide . . . If Y = $400m, C will be $360m. ...
sound fiscal policy - Business Roundtable
... fast-rising debt, the resulting loss of international confidence can create value, and win in a diverse cause interest rates to soar in a matter of months or even weeks — and quickly make a debt situation unsustainable. Economists Carmen global market. Most CEOs believe the Reinhart and Kenneth Rogo ...
... fast-rising debt, the resulting loss of international confidence can create value, and win in a diverse cause interest rates to soar in a matter of months or even weeks — and quickly make a debt situation unsustainable. Economists Carmen global market. Most CEOs believe the Reinhart and Kenneth Rogo ...
Nation GDP GDP per capita
... 2. From what you know of these countries at the top, what is one characteristic most/all of them share? ...
... 2. From what you know of these countries at the top, what is one characteristic most/all of them share? ...