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Principles of Economics, Case and Fair,9e
Principles of Economics, Case and Fair,9e

... taxes and spending. monetary policy The tools used by the Federal Reserve to control the quantity of money, which in turn affects interest rates. ...
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... demand, and that governments could intervene by increasing aggregate demand was named _____________. 10. The school of thought that argued that governments should aim for steadiness in the money supply rather than play an active role is called _______________. ...
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Fiscal Policy Practice Part 1

... residents’ incomes, while the effects of booms will be diminished because tax revenues will go up. In contrast, incomes will not be supported in Boldovia during slumps because there is no unemployment insurance. In addition, because Boldovia has lump-sum taxes, its booms will not be diminished by in ...
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Controversial Issues About the Recession and Recovery

... – U rate in July 81 or even Jan 80 started higher – Overall increase in 2007-09 is greater – Much more incidence this time of long-term unemployment and forced part-time ...
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Economic growth

... economy’s total output. • Economic growth is sustained increases in the real GDP of an economy over a long period of time. • Economic growth rate is the annual percentage change of real GDP. ...
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Balance Sheet Crises: Causes, Consequences and Responses

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Dominican_Republic_en.pdf

... Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures. a Preliminary figures. b Based on figures in local currency at constant 1991 prices. c Includes gas supply and business services. d Based on figures in local currency expressed in dollars a ...
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... survey of employers, reached a peak in December 2007 and has declined in every month since then. An alternative measure of employment, measured by the BLS’s household survey, reached a peak in November 2007, declined early in 2008, expanded temporarily in April to a level below its November 2007 pea ...
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... negative growth in the gross domestic product and significant declines in outp ut , income, employment, and trade— economic data clearly show that the U.S. was in a recession. Achuthan credited aggressive fiscal and monetary policies with bringing it to a quick end. Despite the recent recession, Gla ...
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... before QE…) and they may move in opposite way to short-term rates because inflation expectations change  If monetary tightening is extreme, expectations of recession may make long-term bonds more attractive, reducing long-term rates and perhaps creating inverted yield curve ...
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... begin when unemployment rate is above the natural rate of unemployment. In fact, the natural rate of unemployment is defined as the rate of unemployment at which the inflation rate remains constant. Another way of defining the natural rate of unemployment is to simply tie it to the level of real GDP ...
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... undermining policy credibility and hence fueling inflationary expectations. Regaining credibility has proved difficult as it has typically required tight monetary policy and high unemployment. As a result, many economists now espouse the thesis that there should be no discretion in the conduct of mo ...
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Econ_B01_Chapter5J

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2.5.2 Circular flow of income, expenditure and output

... certain about the future, otherwise they will postpone their investments. o Also, expectations about society and politics could affect investment. For example, if a change in government might happen, or if commodity prices are due to rise, businesses may postpone their investment decisions. o Keynes ...
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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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