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The Self Regulating Economy
The Self Regulating Economy

... • Say’s Law: Supply creates its own demand. • Implied in Say’s Law: there cannot be either a general overproduction of goods or a general underproduction of goods. • Even in a money economy, where individuals sometimes spend less than their full incomes, Say’s Law still holds. This argument was part ...
Belarus - European Parliament
Belarus - European Parliament

... very vulnerable to developments in Russia. The on-going Russian recession has dampened hopes for increased trade between the two countries. Moscow can no longer afford to endlessly aid its allies and has gradually reduced its oil and gas subsidies to Belarus. At the same time, the falling oil prices ...
What makes a fiscal plan credible?
What makes a fiscal plan credible?

... there is any short-term Keynesian multiplier at all – even one as low as 1/2 – and if there is any longrun shadow cast on potential output by a deeper economic downturn at all – even one as low as 1/10 – then for a country like those of western Europe with a marginal tax-and-transfer share 0.4 and a ...
US Fiscal Problems
US Fiscal Problems

... • 12 years ago, if the country thought it important enough to protect any single category against belt-tightening in the long run -- say military or social security or tax cuts for the rich -it would have been arithmetically possible, by making the cuts elsewhere. • But we no longer have the luxury ...
Preview Sample 1
Preview Sample 1

... picture” view. It examines factors such as changes in unemployment, national income, rate of the economy’s growth, the nation’s gross domestic product, inflation and price levels. Microeconomics looks at the smaller picture. It focuses more on consumers, businesses and industries. Microeconomics exa ...
Chapter 22
Chapter 22

... • consistently rise/fall with business cycle • help track expansions/contractions as they occur • Real GDP is good example Lagging indicators • used to confirm that one phase of business cycle has ended and another has begun • consistently rise/fall months after expansion/contraction • includes unem ...
Economics 304 - ECON 304 Intermediate Macro
Economics 304 - ECON 304 Intermediate Macro

... d. How does crowding out occur in the DAD/DAS model? (6 points) { Recommended Length: 1 page } e. Suppose the government implements an expansionary fiscal policy in the form of increased government spending. Use the dynamic aggregate demand/aggregate supply model to show the effects of the expansio ...
National Accounts - juan gabriel rodriguez
National Accounts - juan gabriel rodriguez

... Net National Product (NNP) = GNP – consumption of fixed capital (depreciation) National Income = Net National Product – Statistical discrepancies ...
Econ 4200 Advanced Macroeconomics
Econ 4200 Advanced Macroeconomics

... • Objective: To provide an introduction to modern methods used in macroeconomic research. * Revisit static IS-LM macro model * Integration of macro with micro economics * Study the dynamic process of business cycles, economic growth, and stabilization policy. ...
circular flow & gdp - Madison County Schools
circular flow & gdp - Madison County Schools

... b. they are not actually bought or sold c. they simply represent a transfer of money d. they would be double counted when we count the value of final goods • e. all of these ...
Economic Snapshot H2, 2016
Economic Snapshot H2, 2016

... Growth – Economic headwinds deepened in 2015 as a result of poor rains and a slump in commodity prices, as well as a contraction in the output of some minerals. The economy grew by 1.1% in 2015, the worst performance since the economic decline that ended in 2008. To turn around the economic tide, th ...
GDP vs GNP
GDP vs GNP

... A major problem with GDP is it is subject to distortions because of inflation Inflation is a rise in the general price level The problem comes when you attempt to compare GDP levels from one year to the next as in charts 13.1 and 13.4 GDP can increase from one year to the next with no real increase ...
Unemployment - La Salle High School
Unemployment - La Salle High School

... people make or do themselves, such as caring for children, mowing lawns, or cooking dinner. Negative Externalities Unintended economic side effects, such as pollution, have a monetary value that is often not reflected in GDP. The Underground Economy There is much economic activity which, although in ...
WELFARE ANALYSIS - Shaler Area School District
WELFARE ANALYSIS - Shaler Area School District

... Y* = Current level of production (real GDP) It’s WHERE WE ARE. FE = Level of spending that would get us to full employment. It’s WHERE WE WANT TO BE! On this graph, you can see that we are in equilibrium beyond full employment. This means that people are spending too much money too quickly, and our ...
agg demand pp
agg demand pp

... The AD diagram: Inflation on the vertical axis – assume an initial ‘target rate’ of 2.0% (as measured by the HICP or CPI) ...
ECO 120- Macroeconomics
ECO 120- Macroeconomics

... inflation and the unemployment rate • Named after A W Phillips who originally discovered the relationship between unemployment and nominal wages, using British data in 1950s. • In general, inflation is associated with economic expansion, and unemployment with economic recession. • During expansion : ...
Macro Semester Topics
Macro Semester Topics

... CPI, GDP Deflators, Inflation 45. An Index Year is always made equal to _______. Real change of values over time can always be calculated with the formula: Later Year – Earlier Year/Earlier Year. This = the Rate of Change. The Rate x 100 = Inflation %. 46. CPI measures monthly purchases by _______, ...
PRESENTATION 1 INTRODUCTION&GDP
PRESENTATION 1 INTRODUCTION&GDP

... Price stability – the price level is unchanged or rises very slowly The Consumer Price Index (CPI) - measures the average price of goods and services bought by consumers Rate of Inflation – the percentage change in the overall price level from one year to the next Inflation 2012 = [(CPI20012 – CPI20 ...
Canada`s real GDP rebounds in November
Canada`s real GDP rebounds in November

... October was fully recovered in November. Canada’s economy is on a very positive trend, with five consecutive advances in real GDP in the last six months—resulting in an annualized cumulative gain of 3.9%. It goes without saying that this pace is particularly strong, and can be largely explained by t ...
Slide 1
Slide 1

... • National Accounts are measures in dollars, but the dollar “value” (the things that can be purchased with a dollar) changes – called, inflation or deflation. • Thus, “nominal values” must be adjusted (usually, deflated) to determine “constant” or “real” values. • “Constant” is outdated; government ...
Goldilocks and stagflation
Goldilocks and stagflation

... growth is expected to amount to 1%, that does not leave much of a buffer if growth falters or inflation jumps. A French investor is worse off. She is also looking at a combined earnings/bond yield of 2%, but real growth is expected to come in at -0.2% over the next two years. In short, the portions ...
supply side policies
supply side policies

... Growth has, however, been very unbalanced, regularly leading to claims that there is a ‘two speed’ economy in the UK. While employment is running at a record level, continuing manufacturing job losses mean that now barely 3.5 million are employed in this sector. Since 1995, while output of the servi ...
Aggregate Demand - FBLA-PBL
Aggregate Demand - FBLA-PBL

... 11. Explain how federal budgetary policy and the Federal Reserve System’s monetary policies influence overall levels of employment, interest rates, production, and prices. 12. Explain how monetary policy is expected to affect investment and aggregate demand. 13. Explain how the Federal Reserve Syste ...
Jeffrey Timmermans Global Economic Journalism Class 4
Jeffrey Timmermans Global Economic Journalism Class 4

... He went to the movies with a friend and -- "on a lark," he said -- asked the theater manager if he had jobs. There was a parttime position, paying $7.85 an hour, that included concession sales and cleaning restrooms. "I'd prefer another office job," he said. "I'm working harder, for less money, than ...
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations

... Business Cycles Business Cycles – Business cycles are 2-year to 5-year ...
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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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