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Ch 12
Ch 12

... – High Inflation rates are often associated with “overheated” economies, i.e., the demand for goods and services exceeds productive capacity, which leads to upward pressure on prices – Trade-off between inflation and unemployment: stimulate the economy enough to maintain nearly full employment, but ...
keynesian economics
keynesian economics

... Keynes believe that 2 things needed to happen to end the Great Depression 1. Consumers need to spend more money a. Keynes thought that the spender should be the govt. According to his theory, the govt. should buy goods and services. This would encourage production and increase employment. 2. Busines ...
Slide 1
Slide 1

... • Oil exporters average net lending increased from 4.3% GDP 1995-2002 to 15% 2005-08 • China’s current account surplus increased from 2% GDP in 2003 to 10% GDP in 2007 Page 15 ...
Demand-side Policies
Demand-side Policies

... § However, there are still delays: recognition of problem § Time for policy to take effect (changes in interest rates can take several months to have an effect on AD, real output, and price level) • Possible ineffectiveness in recession § Presupposes that banks will be willing to increase lending ...
FRBSF E L
FRBSF E L

... weeks—has dropped significantly over the past year. Similarly, the number of people out of work for over six months has come way down. While this is all good news and points to further sustained improvement, there remains considerable slack in the labor market. Because unemployment can never be zero ...
The Economic Outlook and Monetary Policy
The Economic Outlook and Monetary Policy

... 2003: Added forward‐looking guidance on policy Added forward‐looking guidance on policy ...
what can Govts do in a recession?
what can Govts do in a recession?

...  As GDP falls, labor hoarding; as GDP rises, overtime  In both cases, changes in U lag behind changes in GDP Copyright SDA Bocconi 2004 ...
ECONOMICS 576
ECONOMICS 576

... production. Thus the value that GDP attaches to a good or service is that which the market attaches to it—its current dollar market price. It should be noted that GDP may be adjusted (through the Implicit Price Index or GDP Deflator) and thus expressed in real or constant dollar terms. ...
Newfoundland and Labrador Privatization
Newfoundland and Labrador Privatization

... Higher growth Revenues Resulting deficit/surplus ...
Lecture 10 - UCSB Economics
Lecture 10 - UCSB Economics

... 2. Opinions about the US economy have been quite changeable this Fall quarter. At the moment, the rate of growth of the economy is slowing, but growth is still positive. How would you satisfy yourself whether a recession might be coming or not? How would you assess whether the likelihood of a reces ...
ECONOMIC ISSUES
ECONOMIC ISSUES

... Ex: The trade balance has been in deficit for the past five years. Ex: the country’s widening budget deficit Collocations: have/show/face/reduce/cut/eliminate a deficit  Swing (v.): to change or make sb/sth change from one opinion, mood, etc. to another Ex: His mood could swing from joy to despair. ...
AP review wk 2
AP review wk 2

... – Results from a poor match of workers’ abilities and skills with current requirements of employers ...
KEY Srt FRQ Unit 2 Rev
KEY Srt FRQ Unit 2 Rev

... rate, and explain its meaning. What other information do you want to know before recommending a policy to reduce unemployment? Explain why you would want to know this information. The unemployment rate is the percentage of the labor force that is looking for work. Before devising a policy, you would ...
A rise in the price of oil imports has resulted in a decrease of short
A rise in the price of oil imports has resulted in a decrease of short

... a. Nominal GDP measures an average of price and quantity changes, but real GDP measures only quantity changes. b. Both nominal and real GDP measure an average of price and quantity changes. c. Nominal GDP measures only quantity changes, but real GDP measures an average of price and quantity changes. ...
An Examination of the Most Recent Economic Cycle from an Arid
An Examination of the Most Recent Economic Cycle from an Arid

... The most important contributions to business cycle study in the last century were made by Wesley C. Mitchell and by Joseph Schumpeter. Mitchell, who founded the National Bureau of Economic Research, primarily contributed to the empirical study of business cycles and felt that advancements in empiric ...
Are We in a Recession? The `Anxious Index Nowcast`
Are We in a Recession? The `Anxious Index Nowcast`

... However, as we see in Table 4, the economic forecasters in the survey have an upward risk bias at the low end of the index spectrum. When they forecast recessions at values between 0 percent and 20 percent, they are overstating the possibility of there being a recession (i.e., they have been oversta ...
Bank ownership and stability: Evidence from Germany
Bank ownership and stability: Evidence from Germany

... Paul Krugman: Let me respond to that a bit. Let's think about what is actually happening to the global economy right now. On the one side there has been an abrupt realization by many people that they have too much debt, that they are not as rich as they thought. US households have seen their net wo ...
APE Macro Unit 3: Measurement of Economic Performance
APE Macro Unit 3: Measurement of Economic Performance

... Students should be able to explain macroeconomics and how it differs from microeconomics AND answer the following question: Why is it that what is good for the part is not necessarily good for the whole? Explain why the business cycle is important and why policy makers seek to diminish the severity ...
DownloadPDF
DownloadPDF

... Housing investment is projected to have expanded at a particularly robust pace of 5.0% in 2016 supported by strongly rebounding house prices, particularly in urban areas. Although house price increases moderated somewhat over the course of 2016, housing investment is expected to further accelerate t ...
A Few Thoughts on the Employment Numbers
A Few Thoughts on the Employment Numbers

... nothing happens the Fed will be forced to continue, which is a dangerous thing. I wonder whether they might just shrug their shoulders and say, “We tried, and now it is up to the fiscal side of the equation.” We shall see. It will be important to listen to the speeches of the Fed governors to get so ...
Crash & Depression
Crash & Depression

... things really got very worse. The government caused the depression, the New Deal prolonged the misery, and WWII hurt the private sector and individual entrepreneurship and the overall health of the economy that would not heal until the private sector boom of the 1950s. ...
Chapter 1: Introduction: What is Economics?
Chapter 1: Introduction: What is Economics?

... The private sector may not be able to get the economy out of a recessionary gap. In other words, the private sector (households and businesses) may not be able to increase C or I enough to get the AD curve in to intersect the AS curve at the Natural/Potential Level of Real GDP. ...
Michigan Taxes
Michigan Taxes

... b. Some of the massive increase of the deficit was caused by the massive bailouts. This was ‘one-time-only’ spending, so the deficit will be reduced if there are no new bailouts. c. The actual dollar amounts of those recent major bail-outs will not be known for a while, until all the accounting is i ...
Untitled - De Anza
Untitled - De Anza

... lag or delay between the time a person with skills employers want STARTS LOOKING for a job and the time that person  gets hired.  In an ideal world, all markets would be frictionless – buyers and sellers would be able to find each other right  away.  But in the real world, markets have friction.  It ...
Hunt Chapters 1-5 - Villanova Student Managed Fund
Hunt Chapters 1-5 - Villanova Student Managed Fund

...  Notice the time span they are useful and applicable  i.e. annualized inflation rates  Is it real (inflation adjusted) or nominal (unadjusted) ...
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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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