PPT 1 Economic Indicators
... If the nation’s GDP increases, the economy is growing (unless the increase was due to inflation or increase in prices) The Real GDP is an accurate measurement of how much the economy is growing. Must use a price index to adjust for inflation ...
... If the nation’s GDP increases, the economy is growing (unless the increase was due to inflation or increase in prices) The Real GDP is an accurate measurement of how much the economy is growing. Must use a price index to adjust for inflation ...
Fiscal Policy
... 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. ...
... 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. ...
Answers to Sample Short Free-Response Questions
... Advanced Placement Economics Teacher Resource Manual © National Council on Economic Education, New York, N.Y. ...
... Advanced Placement Economics Teacher Resource Manual © National Council on Economic Education, New York, N.Y. ...
lecture ppts in intro macroeconomics
... The length of the time lags can change over the years as the reactions of consumers and businesses to policy measures alters • External shocks: Unexpected external shocks to economy such as the events surrounding Sept 11th 2001 or unexpected volatility in exchange rates and commodity prices can upse ...
... The length of the time lags can change over the years as the reactions of consumers and businesses to policy measures alters • External shocks: Unexpected external shocks to economy such as the events surrounding Sept 11th 2001 or unexpected volatility in exchange rates and commodity prices can upse ...
Document
... need for activist stabilization policies through the manipulation of aggregate demand to keep the economy operating close to its potential output. It incorporates monetarist ideas about the importance of monetary policy. It incorporates new classical ideas about the importance of aggregate supply, b ...
... need for activist stabilization policies through the manipulation of aggregate demand to keep the economy operating close to its potential output. It incorporates monetarist ideas about the importance of monetary policy. It incorporates new classical ideas about the importance of aggregate supply, b ...
Chapter 1 Understanding the Great Recession
... that are most likely temporary.6 Even if these shocks represent more persistent structural problems, the solution to them has nothing to do with replacing the aggregate demand growth that was lost with the end of housing-debt-financed consumption boom.7 But it is hard to escape the seemingly central ...
... that are most likely temporary.6 Even if these shocks represent more persistent structural problems, the solution to them has nothing to do with replacing the aggregate demand growth that was lost with the end of housing-debt-financed consumption boom.7 But it is hard to escape the seemingly central ...
Document
... Interest and exchange rate Components of aggregate demand: household consumption, private investment, expenditure of the state, exports, imports Factors, determining the aggregate supply: amount of capital and labor available, general productivity of country’s economy ...
... Interest and exchange rate Components of aggregate demand: household consumption, private investment, expenditure of the state, exports, imports Factors, determining the aggregate supply: amount of capital and labor available, general productivity of country’s economy ...
Currencies Aren`t the Problem
... rates already near zero, and with large firms but also for the world. able to borrow at very low rates, it was unlikely that corporate investment was being held back because firms thought interest rates were too high. Similarly, households were cautious about spending not because they thought intere ...
... rates already near zero, and with large firms but also for the world. able to borrow at very low rates, it was unlikely that corporate investment was being held back because firms thought interest rates were too high. Similarly, households were cautious about spending not because they thought intere ...
Ch 11 Notes
... 1. Graphically, we can set Y = AE = C + I + G + NX and find the equilibrium (continue with Chapter 10’s example): (i) C = 100 + 0.8Y, I = 50, G = 50, NX = 25. (ii) AE = C + I + G + NX = ________________________________________. ...
... 1. Graphically, we can set Y = AE = C + I + G + NX and find the equilibrium (continue with Chapter 10’s example): (i) C = 100 + 0.8Y, I = 50, G = 50, NX = 25. (ii) AE = C + I + G + NX = ________________________________________. ...
What is fiscal policy? - Ms. Edlund`s Social Studies Classes
... is the continuing policy of the Federal Government to use all practicable means … to promote maximum employment, production, and purchasing power.” ...
... is the continuing policy of the Federal Government to use all practicable means … to promote maximum employment, production, and purchasing power.” ...
Econ 375 Sample Exam 3 Questions 1. Some firms do not instantly
... 14. Arguments in favor of active economic policy include all of the following except: A) failing to use monetary and fiscal policy leads to inefficient fluctuations in output and employment. B) the Great Depression could have been avoided if the Federal Reserve had pursued a policy of steady money ...
... 14. Arguments in favor of active economic policy include all of the following except: A) failing to use monetary and fiscal policy leads to inefficient fluctuations in output and employment. B) the Great Depression could have been avoided if the Federal Reserve had pursued a policy of steady money ...
Principles of Economics (5th Edition) by Karl Case & Ray Fair
... Aggregate Output (GDP) Gross Domestic Product (GDP) is the dollar value of all final goods and services produced. Final good: a product which is ready to be used by consumers ...
... Aggregate Output (GDP) Gross Domestic Product (GDP) is the dollar value of all final goods and services produced. Final good: a product which is ready to be used by consumers ...
3. Policy Lags
... action and the actual implementation of appropriate policy measures. Often, the policy-making process itself is responsible for the delay in the adoption and implementation of policy measures. Further, there is an additional lag between the policy itself and the effects resulting from it. Often, man ...
... action and the actual implementation of appropriate policy measures. Often, the policy-making process itself is responsible for the delay in the adoption and implementation of policy measures. Further, there is an additional lag between the policy itself and the effects resulting from it. Often, man ...
Self-Adjustment or Instability?
... smaller. – If the MPC increases, then the multiplier gets larger. ...
... smaller. – If the MPC increases, then the multiplier gets larger. ...
An Overview of the Great Depression
... programs, e.g., NRA, WPA, PWA, CCC, etc.). All were forms of Keynesian Economics where governments run deficits in bad times and pay them off in good times to prevent total economic collapse (this is why GM and Chrysler were bailed out of bankruptcy by Canada and U.S. governments in 2008 and why the ...
... programs, e.g., NRA, WPA, PWA, CCC, etc.). All were forms of Keynesian Economics where governments run deficits in bad times and pay them off in good times to prevent total economic collapse (this is why GM and Chrysler were bailed out of bankruptcy by Canada and U.S. governments in 2008 and why the ...
Unemployment rate - McGraw Hill Higher Education
... CPI is also based on data collected by the Bureau of Labor Statistics (BLS). The CPI is based on what it costs an average family to ...
... CPI is also based on data collected by the Bureau of Labor Statistics (BLS). The CPI is based on what it costs an average family to ...
Explain how fiscal policy can be used to influence both
... Partly because of the limitations of fiscal policy as a tool of demand management, many governments have switched the focus of fiscal policy towards using it to improve aggregate supply as a means of creating the conditions for sustainable economic growth. Supply-side economic policies have as their ...
... Partly because of the limitations of fiscal policy as a tool of demand management, many governments have switched the focus of fiscal policy towards using it to improve aggregate supply as a means of creating the conditions for sustainable economic growth. Supply-side economic policies have as their ...
Learn More
... these changes, we need to draw a distinction between the real economy on the one hand and nominal shifts in economic data—and their implications—on the other. On the surface, the difference between “nominal” and “real” is simply the inflation rate: subtracting inflation from the nominal variable res ...
... these changes, we need to draw a distinction between the real economy on the one hand and nominal shifts in economic data—and their implications—on the other. On the surface, the difference between “nominal” and “real” is simply the inflation rate: subtracting inflation from the nominal variable res ...
Power Point ( 594K ) - St. Louis Fed
... The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent. Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of ...
... The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent. Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of ...
ECCU_en.pdf
... wholesale and retail trade (6%) and in banks and insurance (3%). The tourism sector, which contributed about 8% to real GDP and is the mainstay of many ECCU economies, saw some improvement during that period thanks to a 5% increase in the higher-end stay-over visitors; cruise passengers were also up ...
... wholesale and retail trade (6%) and in banks and insurance (3%). The tourism sector, which contributed about 8% to real GDP and is the mainstay of many ECCU economies, saw some improvement during that period thanks to a 5% increase in the higher-end stay-over visitors; cruise passengers were also up ...
LARRY SUMMERS: I`m glad to be here. I`m glad to be here with my
... policy is surely more problematic when there is no room to reduce the federal funds rate; when there have been five years of extraordinary monetary policies and slack remains; and when there are grounds for concern that protracted interest rates near zero inflate asset prices, disproportionately fav ...
... policy is surely more problematic when there is no room to reduce the federal funds rate; when there have been five years of extraordinary monetary policies and slack remains; and when there are grounds for concern that protracted interest rates near zero inflate asset prices, disproportionately fav ...
A Better Measure than GDP
... at the Organization for Economic Cooperation and Development (OECD) World Forum in 2007. "It's natural in the post–Cold War era that we would turn to other measures of how well our society is doing." Natural disasters, oil spills, car crashes, riots, crime: anything you pay to fix will boost GDP. He ...
... at the Organization for Economic Cooperation and Development (OECD) World Forum in 2007. "It's natural in the post–Cold War era that we would turn to other measures of how well our society is doing." Natural disasters, oil spills, car crashes, riots, crime: anything you pay to fix will boost GDP. He ...
Study Tips for Final
... • Determinants of interest rates – Investment demand (loan demand) – Savings (loan supply) – Effects of “shocks” on interest rates, savings, investment. ...
... • Determinants of interest rates – Investment demand (loan demand) – Savings (loan supply) – Effects of “shocks” on interest rates, savings, investment. ...
Fiscal and Monetary Policy
... 1. borrow from the public Sell bonds to the public Competes with private businesses With this added demand for $, interest rates may increase and private Ig may decrease ...
... 1. borrow from the public Sell bonds to the public Competes with private businesses With this added demand for $, interest rates may increase and private Ig may decrease ...
Unemployment
... If the nation’s GDP increases, the economy is growing (unless the increase was due to inflation or increase in prices) The Real GDP is an accurate measurement of how much the economy is growing. Must use a price index to adjust for inflation ...
... If the nation’s GDP increases, the economy is growing (unless the increase was due to inflation or increase in prices) The Real GDP is an accurate measurement of how much the economy is growing. Must use a price index to adjust for inflation ...