Economic Activity
... ◦ Discount rate – interest rate offered by the Federal Reserve to financial institutions for loans ...
... ◦ Discount rate – interest rate offered by the Federal Reserve to financial institutions for loans ...
Euro-zone Economic Outlook January 2010: Lacklustre recovery (PDF, 48 KB)
... The recession in the euro-zone appears to be over. Real GDP increased in Q3 2009 by 0.4% after a fall of 0.1% in Q2. However, economic prospects remain subdued. Real GDP is forecasted to rise by 0.3% in Q4 2009, and by 0.2% in both Q1 2010 and Q2. In particular, the fading fiscal stimulus in the com ...
... The recession in the euro-zone appears to be over. Real GDP increased in Q3 2009 by 0.4% after a fall of 0.1% in Q2. However, economic prospects remain subdued. Real GDP is forecasted to rise by 0.3% in Q4 2009, and by 0.2% in both Q1 2010 and Q2. In particular, the fading fiscal stimulus in the com ...
Outline of GDP Notes
... GDP? Holding everything else constant, it falls. What factors affect the value of the dollar? Demand and supply of dollars. The GDP of other countries. If a country’s income (GDP) rises, their demand for all goods, including foreign goods will rise. Or if a countries income (GDP) falls their demand ...
... GDP? Holding everything else constant, it falls. What factors affect the value of the dollar? Demand and supply of dollars. The GDP of other countries. If a country’s income (GDP) rises, their demand for all goods, including foreign goods will rise. Or if a countries income (GDP) falls their demand ...
canada cycle comparison.pub
... way as described above for Canada, suggests that about 70% of the underperformance of the US economy during the economic recovery can be accounted for by slower potential GDP growth (Chart 4). This is similar to the conclusion reached by the Congressional Budget Office (CBO) in a November 20121 stud ...
... way as described above for Canada, suggests that about 70% of the underperformance of the US economy during the economic recovery can be accounted for by slower potential GDP growth (Chart 4). This is similar to the conclusion reached by the Congressional Budget Office (CBO) in a November 20121 stud ...
Exam I from Spring 2006 with answers
... Unless you could change the MPC, MPS remains unchanged. ...
... Unless you could change the MPC, MPS remains unchanged. ...
Animal Spirits and Economic Fluctuations
... Self-fulfilling pessimism: an important independent factor in affecting aggregate output. “Sunspots, Animal Spirits, and Economic Fluctuations.” “Animal spirits” have played a nontrivial role in the 1969-1970, the 1973-1975, and the 1981-1982 recessions. ...
... Self-fulfilling pessimism: an important independent factor in affecting aggregate output. “Sunspots, Animal Spirits, and Economic Fluctuations.” “Animal spirits” have played a nontrivial role in the 1969-1970, the 1973-1975, and the 1981-1982 recessions. ...
PDF
... the prism of the broad economic theories to which they have subscribed over time. It argues that, with occasional deviations, Labor’s macroeconomic policy stance has been Keynesian ever since the Working Nation package introduced in the aftermath of the 1990-91 recession. By contrast, the position o ...
... the prism of the broad economic theories to which they have subscribed over time. It argues that, with occasional deviations, Labor’s macroeconomic policy stance has been Keynesian ever since the Working Nation package introduced in the aftermath of the 1990-91 recession. By contrast, the position o ...
65 Keynesian LRAS Ed
... As the economy experiences a recession AD will shift to the left as levels of consumption and investment fall. The real output will fall from Y1 to Y2, resulting in unemployment and the price level will fall from P1 to P2. Based on the following extract explain what is happening to the real output a ...
... As the economy experiences a recession AD will shift to the left as levels of consumption and investment fall. The real output will fall from Y1 to Y2, resulting in unemployment and the price level will fall from P1 to P2. Based on the following extract explain what is happening to the real output a ...
Chapter 10
... produced abroad cheaper. 6. When exports fall as imports rise, the trade deficit is increasing. ii. The alternative to the traditional view 1. Another view is that deficit spending will not lead to higher interest rates. 2. It is founded on “Ricardian Equivalence,” which says deficit spending has th ...
... produced abroad cheaper. 6. When exports fall as imports rise, the trade deficit is increasing. ii. The alternative to the traditional view 1. Another view is that deficit spending will not lead to higher interest rates. 2. It is founded on “Ricardian Equivalence,” which says deficit spending has th ...
US Employment Outlook for 2014: Can the US
... Six years have passed since the recession officially began in December 2007 and employment has still not returned to its pre-recession level. It is getting closer, but unlike GDP and the stock market (as measured by the S&P500 Index), payroll employment as of December 2013 is still shy of its pre-re ...
... Six years have passed since the recession officially began in December 2007 and employment has still not returned to its pre-recession level. It is getting closer, but unlike GDP and the stock market (as measured by the S&P500 Index), payroll employment as of December 2013 is still shy of its pre-re ...
Growth Must be the Goal
... How can Britain get back to Growth? (To the tune of "Maybe it's because I'm a Londoner") Maybe it's because I'm an economist that I don't like output down. It's hard to be cheerful when the OECD predicts a UK recession this year and our national output is still 4 per cent below pre-recession levels. ...
... How can Britain get back to Growth? (To the tune of "Maybe it's because I'm a Londoner") Maybe it's because I'm an economist that I don't like output down. It's hard to be cheerful when the OECD predicts a UK recession this year and our national output is still 4 per cent below pre-recession levels. ...
Ch16-- Macroeconomic Viewpoints
... New Classical “Policy” Most observed unemployment is voluntary. Only unanticipated policies can have any effect. “policy ineffectiveness proposition”. Therefore, attempt no activist policy. Follow predictable and stable monetary and fiscal policies for long run employment and price stability. ...
... New Classical “Policy” Most observed unemployment is voluntary. Only unanticipated policies can have any effect. “policy ineffectiveness proposition”. Therefore, attempt no activist policy. Follow predictable and stable monetary and fiscal policies for long run employment and price stability. ...
The State of Our Economy in 600 Words
... With the presidential election approaching, it’s time to understand the true state of our economy. Here are the facts from the three full years of the Obama administration. The economy shrank by 3.1% in 2009, grew by 2.4% in 2010 and 1.8% in 2011.1 The unemployment rate was 9.3% in 2009, 9.6% in 201 ...
... With the presidential election approaching, it’s time to understand the true state of our economy. Here are the facts from the three full years of the Obama administration. The economy shrank by 3.1% in 2009, grew by 2.4% in 2010 and 1.8% in 2011.1 The unemployment rate was 9.3% in 2009, 9.6% in 201 ...
Income - RebelText
... What are the two ways to calculate GDP, and why do they give the same result? What’s the difference between GDP and GNP? What’s per-capita GDP? Is it a good measure of welfare? Why or why not? What is the PPP adjustment, how do we do it, and why? What is the difference between nominal and real GDP ( ...
... What are the two ways to calculate GDP, and why do they give the same result? What’s the difference between GDP and GNP? What’s per-capita GDP? Is it a good measure of welfare? Why or why not? What is the PPP adjustment, how do we do it, and why? What is the difference between nominal and real GDP ( ...
19 BUSINESS CYCLES
... in a classical world. 5. An alternate theory to the classical view was provided by John Maynard Keynes. He concluded that there was no tendency to full employment and that equilibrium in the economy could occur at any level of output. Keynes argued that supply creates its own demand only as long as ...
... in a classical world. 5. An alternate theory to the classical view was provided by John Maynard Keynes. He concluded that there was no tendency to full employment and that equilibrium in the economy could occur at any level of output. Keynes argued that supply creates its own demand only as long as ...
Practice exam 1A
... Ct = a c Y t where Y t denotes potential output. You should assume that before the change in a c , the economy has been in an equilibrium for some time in which output equals potential output, inflation has been steady at 2%, and the marginal product of capital has been steady at 3%. a.) (14 points) ...
... Ct = a c Y t where Y t denotes potential output. You should assume that before the change in a c , the economy has been in an equilibrium for some time in which output equals potential output, inflation has been steady at 2%, and the marginal product of capital has been steady at 3%. a.) (14 points) ...
Improving GDP Forecasts
... Most Governments and economic planners use GDP as an indicator for planning and policy formulation. Because government policies directly influence the financial markets, investors keep a close tab on the GDP growth and estimates. GDP helps the investors to manage their portfolios by providing them a ...
... Most Governments and economic planners use GDP as an indicator for planning and policy formulation. Because government policies directly influence the financial markets, investors keep a close tab on the GDP growth and estimates. GDP helps the investors to manage their portfolios by providing them a ...
HW2-sol
... relevance of economic figures relative to the size of the economy. You might here about a government spending program of $10 billion discussed as if it were a lot of money. Indeed, $10 billion would be a huge amount of money for an individual, but it’s only 0.06% of GDP! b) "Annual rates" means that ...
... relevance of economic figures relative to the size of the economy. You might here about a government spending program of $10 billion discussed as if it were a lot of money. Indeed, $10 billion would be a huge amount of money for an individual, but it’s only 0.06% of GDP! b) "Annual rates" means that ...
Guatemala_en.pdf
... 4.8% of GDP, almost half a percentage point less than in the previous year. The terms of trade once again deteriorated (by 2.7%), as had occurred over the past five years. For 2009, it is expected that both exports and imports will decrease by about 10%, the current account deficit will be close to ...
... 4.8% of GDP, almost half a percentage point less than in the previous year. The terms of trade once again deteriorated (by 2.7%), as had occurred over the past five years. For 2009, it is expected that both exports and imports will decrease by about 10%, the current account deficit will be close to ...
Chapter 15 Economic Instability
... • Business cycles are of major interest to macroeconomists, who study their causes and effects. • There are four main phases of the business cycle: expansion, peak, contraction, and trough. • Businesses reduce their capital expenditures when they decide they have expanded enough. • At the first sign ...
... • Business cycles are of major interest to macroeconomists, who study their causes and effects. • There are four main phases of the business cycle: expansion, peak, contraction, and trough. • Businesses reduce their capital expenditures when they decide they have expanded enough. • At the first sign ...
Keynesian (Demand Side) Economic theory Supply Side Economic
... needed and factories and private businesses (prodded by an increase in aggregate demand) begin to increase production (would necessitate rehiring people who were hitherto unemployed to produce the increased amount of goods that consumers are demanding). Once factory workers are back in the factories ...
... needed and factories and private businesses (prodded by an increase in aggregate demand) begin to increase production (would necessitate rehiring people who were hitherto unemployed to produce the increased amount of goods that consumers are demanding). Once factory workers are back in the factories ...
Chapter 7 Practice Problems
... 17. Working as an elevator operator used to be a common job in the workforce four decades ago, but today few jobs remain. The unemployment created by the introduction of automatic elevators would be considered: A) wait. B) cyclical. C) frictional. D) structural. ...
... 17. Working as an elevator operator used to be a common job in the workforce four decades ago, but today few jobs remain. The unemployment created by the introduction of automatic elevators would be considered: A) wait. B) cyclical. C) frictional. D) structural. ...