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Chapter_12
Chapter_12

... Technological progress is an increase in efficiency gained by producing more output without using more inputs. A variety of factors contribute to technological progress: Innovation When new products and ideas are successfully brought to market, output goes up, boosting GDP and business profits. Scal ...
The Economic Consequences of German Unification
The Economic Consequences of German Unification

... Federal Reserve cautiously avoided trying to push inflation below 2 percent. Claims that there were excessive wage hikes in Germany at this time were unjustified. The degree of wage moderation in Germany was excessive relative to depressed productivity growth, as wage disinflation merely compensate ...
Fiscal Policy - McGraw-Hill
Fiscal Policy - McGraw-Hill

... economic role. It left most matters to consumers and businesses. Then, in the 1930s, the government’s economic role changed. Franklin Roosevelt became president in 1933. The Great Depression had been going on for nearly four years, and millions of people were suffering. Roosevelt decided that the na ...
Speech at Sacramento State University’s
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... group with rising delinquencies still represents only a small fraction of the total market, with little impact on the behavior of overall consumption. A forward-looking view of the credit risks associated with subprime mortgages can be obtained from a new financial instrument related to these mortg ...
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... Low economic growth High existing market shares Lack of export opportunities Lack of entrepreneurial vision? Lack of confidence in the future? Short-termism: share buy-backs, special dividends? ...
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... Low economic growth High existing market shares Lack of export opportunities Lack of entrepreneurial vision? Lack of confidence in the future? Short-termism: share buy-backs, special dividends? ...
The Global Financial Crisis: Overview
The Global Financial Crisis: Overview

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Exam - Pearson Canada

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Transforming Economic Data
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Chapter 8 - University of Alberta
Chapter 8 - University of Alberta

... Introduction to Business Cycles (continued) • Keynesian economists argue that because wages and prices adjust slowly, disturbances in production and spending may drive the economy away from its most desirable level of output and employment for long periods of time. ...
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... • Now there is interaction between expectation  once trapped and demand • Can get much larger effect if the expectations  mechanism is taken into account, and  ...
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... investment is not meant to imply opposition to reversing the austerity cuts or boosting government spending, especially investment in infrastructure and other job-creating areas. The Marxist critique of fiscal multipliers is that the Keynesian solution is utopian because bigger government and more ...
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... unemployment rate equal to its natural rate. Policy makers would like ANSWER: A major obstacle to achieving disinflation is that the public has come to expect continuing inflation. To reduce inflation, it is often necessary to keep the unemployment rate above the natural rate for an extended period ...
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Should U.S. Fiscal Policy Address Slow Growth or the Debt? A Nondilemma

... slow recovery, standard—Keynesian—economics suggests further fiscal stimulus in the form of lower taxes or higher spending. But that recommendation runs head-first into the economy’s second crucial challenge, the long-run fiscal imbalance. Yet policymakers are wrong to see this as a dilemma. The Key ...
Predictions for 2014: Advanced economies pick up speed Global Economy Watch January 2014
Predictions for 2014: Advanced economies pick up speed Global Economy Watch January 2014

... This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) i ...
Answers - Palomar College
Answers - Palomar College

... quickly move the economy to its potential level of real GDP? a. profit motive c. flexible wages and prices b. rigid wages and prices d. natural rate of unemployment 4*. The classical long-run aggregate supply curve is: a. downward sloping b. upward sloping c. horizontal d. vertical at the level of p ...
Practice Quizzes (Word)
Practice Quizzes (Word)

... quickly move the economy to its potential level of real GDP? a. profit motive c. flexible wages and prices b. rigid wages and prices d. natural rate of unemployment 4*. The classical long-run aggregate supply curve is: a. downward sloping b. upward sloping c. horizontal d. vertical at the level of p ...
The Debt Crisis in poland
The Debt Crisis in poland

... and treasury-guranteed fixed income secutiries ...
liquidity trap - Princeton University Press
liquidity trap - Princeton University Press

... be expected to rise. This in turn harms private investment through increased real cost of borrowing and thereby widens the output gap. Thus the economy falls into a vicious cycle. A persistent recession causes deflation, which raises real interest rates and lowers output even further, while monetary ...
What is Gross Domestic Product (GDP)? Gross Domestic Product or
What is Gross Domestic Product (GDP)? Gross Domestic Product or

... economy is growing in terms of an increase in output which should help create more employment, increase income and improve people’s livelihoods. The economy can also register a negative GDP growth rate which means a decline in the country’s total output and income. Factors that affect a country’s ou ...
Out of the corridor: Keynes and the crisis
Out of the corridor: Keynes and the crisis

... and the imperative of defending the exchange rate had caused it to maintain too high a level of interest rates. The combination of a declining marginal efficiency of capital and interest rates that did not decline propelled the country into a recession that was deep even before the USA slipped into ...
Italy: From Economic Decline to the Current crisis
Italy: From Economic Decline to the Current crisis

... It led, on the contrary, to an increase in profits, which often are not converted into new investments, but on the contrary, increased dominant positions of some rent-seeking firms, and increased portfolio movements of speculators and investors.  This allowed for accumulation of extra profits by fi ...
Izmir University of Economics Name: Department of
Izmir University of Economics Name: Department of

... D) GDP is not neutral about the kinds of goods an economy produces. 13) Which of the following would not occur in an ideal economy? A) Rapid growth of output per worker B) Low unemployment C) Deflation D) None of the above ...
An Index of Coincident Economic Indicators for
An Index of Coincident Economic Indicators for

... determine a business cycle chronology. However, the motivation for looking at a range of measures other than GDP – irrespective of its frequency of measurement – is much more profound than simply allowing for measurement error. Rather it involves the essential philosophical question of what should c ...
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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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