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According to estimates from MassBenchmarks, Massachusetts real gross domestic product
According to estimates from MassBenchmarks, Massachusetts real gross domestic product

... years productivity growth has been faster. As measured by GDP to payroll employment, real output per worker rose from $100,800 in 2001 to $120,300 in 2012.7 Relative to New England as a whole, this productivity measure for Boston was 9.7% higher in 2001, and 13.6% higher by 2012. Boston’s higher rat ...
GDP
GDP

... final goods and services produced within a country during one calendar year. – Measures total cash value of sales of all goods/services. – Products sold in form sold to consumers (computers; not the computer chips) – Goods produced in US (even by foreign nations) – Calculates sales at its original s ...
Modern macroeconomics: monetary policy
Modern macroeconomics: monetary policy

... Between 2000 and 2002, the unemployment rate rose from 4.0% to 5.8%. Episodes 7 and 8 the Fed slashed the federal funds rate from 6.2% in 2000 to 1.7% in 2002, and to 1% in 2003. In 2004, the unemployment rate declined and the Federal Reserve began to raise the federal funds rate until it reached 5% ...
India (Country update) - Rabobank, Economic Research
India (Country update) - Rabobank, Economic Research

... This document is issued by Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. incorporated in the Netherlands, trading as Rabobank Nederland, and regulated by the FSA. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable, but no repres ...
The Great Depression
The Great Depression

... Galbraith argues in The Great Crash 1929 that five other fundamentals were responsible for the severity of the recession in the early 1930s: 1) The unequal distribution of income. This meant that the boom of the 1920s and subsequent bust was driven largely by fluctuations in investment. Investment i ...
lecture notes
lecture notes

... raise taxes in a recession or cut spending making the recession possibly worse. In an inflationary period, they may increase spending or cut taxes as their budgets head for surplus. 3. The crowding-out effect may be caused by fiscal policy. a. “Crowding-out” may occur with government deficit spendin ...
Chap015
Chap015

... well as greater tax incentives for investment: – Saving is that part of disposable income not spent or income minus consumption. – By 2006, the U.S. saving rate was negative as consumers were spending more than they were earning. LO-4 ...
Fourth Edition - Virginia Community College System
Fourth Edition - Virginia Community College System

... Do You Help the Economy More if You Spend or if You Save? Suppose that you have received an income tax refund check from the U.S. government. You are not sure what to do with the money, so you ask your two roommates for advice. One roommate tells you that if you want to help the economy, you should ...
On the brink: fiscal austerity threatens a glObal recessiOn
On the brink: fiscal austerity threatens a glObal recessiOn

... prosperity. Some of the transition economies depicted in the charts above experienced a particularly hard landing during the recent crisis, because their fiscal space had been severely reduced by imposing very low tax rates over several years. This gave them little room to manoeuvre when crisis stru ...
Ch11-- Income and Expenditures Equilibrium
Ch11-- Income and Expenditures Equilibrium

... ΔY/ΔI = ΔY/ΔG = ΔY/ΔX ...
Review, Chapters 15-17
Review, Chapters 15-17

... Fiscal policy Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives Fiscal Policy: Congress & President (Treasury/OMB) Monetary Policy—ain’t fiscal policy—The Fed does M-policy ...
The Macroeconomic Framework
The Macroeconomic Framework

... Examples of macroeconomic goals • Preserve macro stability—growth at around 7%, inflation below 5%, keep government debt on a sustainable path, and build-up official reserves • Engineer a soft landing from unsustainable growth rates • Lower inflation to single digits • Fiscal consolidation: Reduce ...
Ch 10 Measuring Aggregate Demand
Ch 10 Measuring Aggregate Demand

... 8) Cyclical unemployment exists because A) certain skills tend to become obsolete as the economy continually changes. B) there are periodic reductions in the economy's total demand for goods and services. C) it takes some time for new entrants into the labor force to find employment. D) as workers b ...
Grosse Pointe South AP Macro Chapter 6 and 8 Clicker Review 1
Grosse Pointe South AP Macro Chapter 6 and 8 Clicker Review 1

... a. affect neither the size of the labor force nor the unemployment rate. b. reduce the labor force and decrease the unemployment rate. c. reduce the labor force and increase the unemployment rate. d. increase the labor force and increase the unemployment rate. e. increase the labor force and reduce ...
Economic Goals and how do we measure them
Economic Goals and how do we measure them

... Economic Goals and how we measure them ...
ECN202 Practice Questions: 1960s
ECN202 Practice Questions: 1960s

... 7. The 1960s was a time period to experiment with fiscal policy. What did we learn from president Johnson? a. timing matters and policy makers improperly estimated the lags on fiscal policy b. tax increases are less effective than tax cuts c. temporary tax cuts will have minimal impact on consumptio ...
Econ Unit 4 Macro Notes
Econ Unit 4 Macro Notes

... STAGFLATION STAGFLATION is a decline in real GDP with a rise in price levels; in other words, it’s a combination of a stagnant economy (recession) with high inflation LRAS (full employment) ...
Table 1 - Riccardo Fiorito
Table 1 - Riccardo Fiorito

... 1. Government purchases (CGNW), i.e. about 1/3 of government consumption in the Oecd countries. Purchases buy on the market the intermediate inputs, necessary for providing government services. 2. Capital expenditure (IGAA+TKPG): potentially, is a growth enhancing factor (e.g. infrastructures). Thus ...
National Income Accounting
National Income Accounting

... encompasses many terms you should understand by the time we finish Chapter 14 ...
National Income Accounting
National Income Accounting

... encompasses many terms you should understand by the time we finish Chapter 14 ...
FedViews
FedViews

... The Federal Open Market Committee decided on November 3 to expand the Federal Reserve’s holdings of securities to provide additional support for the economy. In addition to maintaining its existing policy of reinvesting principal payments from its securities holdings, the FOMC authorized purchases o ...
Document
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... eliminate government intervention in the labor market. increase aggregate demand. create retraining programs so that unemployed workers can acquire new skills as technology changes. e) offer employees above-equilibrium wages to attract more workers. 19. TURKSTAT would classify women who work in fami ...
Croatia - Euler Hermes
Croatia - Euler Hermes

... and stagnating in 2011, the level of real GDP was -11% lower than at its peak in 2008. Domestic demand was particularly weak in 2012, with private consumption decreasing by -3%, government consumption by -0.8% and fixed investment by -4.6%. Weak domestic demand also affected imports, which declined ...
What Should a Central Bank (Not) Do?
What Should a Central Bank (Not) Do?

... Krugman, then, have had the Fed refill the tire punctured by plunging business investment? “Housing,” he said, “which is highly sensitive to interest rates, could help lead a recovery.” But surely Krugman understood that we could have too much demand for housing, even if the economy as a whole was p ...
MACRO Study Guide Before AP 2009
MACRO Study Guide Before AP 2009

... This is a nominal interest rate (really the federal funds rate). Money Demand is based on speculative demand, precautionary demand & price level. So we hold more money when consumers get ‘scared”. You rarely shift MD on AP tests—but sometimes they do require it! ...
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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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