Unit 4: Aggregate Demand, Aggregate Supply, and Fiscal Policy
... Draw and label the short and long run Phillips curve. Label points A, B, and C based on the changes in AD Price Level LRAS Phillips Curve AS PL1 ...
... Draw and label the short and long run Phillips curve. Label points A, B, and C based on the changes in AD Price Level LRAS Phillips Curve AS PL1 ...
Yarmouk University Economics 200
... Understand the fiscal dept and deficits, national saving, and the link between international deficits, national saving, and exchange rate. Understand inflation and the determinants of it. To derive the aggregate demand curve from the IS-LM model and motivates the short-run and long-run aggrega ...
... Understand the fiscal dept and deficits, national saving, and the link between international deficits, national saving, and exchange rate. Understand inflation and the determinants of it. To derive the aggregate demand curve from the IS-LM model and motivates the short-run and long-run aggrega ...
Office 2007 - Sample Slides - Iowa Rural Water Association
... Fitch said a downgrade was still likely later in the year if Washington failed to use the new breathing space to put in place a credible debt reduction plan. The Oct – Dec deficit was $292.3 billion, as compared to $321.7 billion last year. The government has run a surplus two months since Sep ...
... Fitch said a downgrade was still likely later in the year if Washington failed to use the new breathing space to put in place a credible debt reduction plan. The Oct – Dec deficit was $292.3 billion, as compared to $321.7 billion last year. The government has run a surplus two months since Sep ...
Fiscal Policy & the Multiplier
... a way different than does government spending. Once we add taxes into the mix, disposable income increases much less. Taxes reduce the size of the multiplier. The tax multiplier is always negative, and is as follows: -MPC/(1-MPC) or – MPS/MPS ...
... a way different than does government spending. Once we add taxes into the mix, disposable income increases much less. Taxes reduce the size of the multiplier. The tax multiplier is always negative, and is as follows: -MPC/(1-MPC) or – MPS/MPS ...
Federal Reserve Monetary Policy
... Balanced Growth Act of 1978 This act required that policymakers pursue policies to achieve full employment and noninflationary economic growth ...
... Balanced Growth Act of 1978 This act required that policymakers pursue policies to achieve full employment and noninflationary economic growth ...
CHAPTER FOURTEEN Stabilisation Policy
... • The model of aggregate demand and aggregate supply shows how shocks to the economy can cause recessions. • It also shows how monetary and fiscal policy can prevent recessions by responding to these shocks. • These economists consider it wasteful not to use these policy instruments to stabilize the ...
... • The model of aggregate demand and aggregate supply shows how shocks to the economy can cause recessions. • It also shows how monetary and fiscal policy can prevent recessions by responding to these shocks. • These economists consider it wasteful not to use these policy instruments to stabilize the ...
Prospects for Employment: Evidence from Prior Recoveries
... economy will continue expanding even after some of the stimulative government support winds down. Also, many businesses may be limited in how much external funding they can raise. The third headwind involves the fact that recessions this severe have broader ramifications for labor markets. Workers b ...
... economy will continue expanding even after some of the stimulative government support winds down. Also, many businesses may be limited in how much external funding they can raise. The third headwind involves the fact that recessions this severe have broader ramifications for labor markets. Workers b ...
ECO 209Y MACROECONOMIC THEORY Solution to Problem Set 1-2
... But real GDP per capita still does not take into account changes in income distribution, changes in environmental quality, or leisure, all of which influence the economic welfare of the people in a country. Therefore we cannot say whether the welfare of the people in the Canada has increased more th ...
... But real GDP per capita still does not take into account changes in income distribution, changes in environmental quality, or leisure, all of which influence the economic welfare of the people in a country. Therefore we cannot say whether the welfare of the people in the Canada has increased more th ...
PDF Download
... a consequence, real GDP growth of CIS is expected to ease to 7 percent in 2008 and 6.5 percent in 2009. For Russia the IMF projects a real GDP growth rate of 6.8 percent in 2008 and 6.3 percent in 2009, compared to that of 5.6 percent (2008) and 4.2 percent (2009) for Ukraine (see also Figure 1). On ...
... a consequence, real GDP growth of CIS is expected to ease to 7 percent in 2008 and 6.5 percent in 2009. For Russia the IMF projects a real GDP growth rate of 6.8 percent in 2008 and 6.3 percent in 2009, compared to that of 5.6 percent (2008) and 4.2 percent (2009) for Ukraine (see also Figure 1). On ...
Association of Government Accountants
... the Slovak Republic since the creation of the Republic just 17 years ago. Your current efforts are pulling your country back from the brink of economic disaster and in the worst economic climate the world has experienced for 80 years. ...
... the Slovak Republic since the creation of the Republic just 17 years ago. Your current efforts are pulling your country back from the brink of economic disaster and in the worst economic climate the world has experienced for 80 years. ...
The US economic outlook
... their home jurisdiction unless governing law permits otherwise. This report should not be distributed to others or replicated in any form without prior consent of JPMorgan. This report has been issued, in the U.K. only to persons of a kind described in Article 19 (5), 38, 47 and 49 of the Financial ...
... their home jurisdiction unless governing law permits otherwise. This report should not be distributed to others or replicated in any form without prior consent of JPMorgan. This report has been issued, in the U.K. only to persons of a kind described in Article 19 (5), 38, 47 and 49 of the Financial ...
Lecture 2
... The Unemployment Rate • Labor force (L) = Empl. (N) + Unemployed (U) • Unemployment Rate (u) = U/L • Willing to work? Looking for work? L < Pop. – Not in the labor force – Discouraged workers (recessions) ...
... The Unemployment Rate • Labor force (L) = Empl. (N) + Unemployed (U) • Unemployment Rate (u) = U/L • Willing to work? Looking for work? L < Pop. – Not in the labor force – Discouraged workers (recessions) ...
United States: Weak Real GDP Growth Once Again Marks the Start
... is in line with the strong performance of indicators such as the ISM indexes. Non-residential construction in particular has benefited from a turnaround in the oil sector, whose annualized increase reached 450.9% in Q1! The solid investment figures are nevertheless counterbalanced by weaker than exp ...
... is in line with the strong performance of indicators such as the ISM indexes. Non-residential construction in particular has benefited from a turnaround in the oil sector, whose annualized increase reached 450.9% in Q1! The solid investment figures are nevertheless counterbalanced by weaker than exp ...
exam1-06
... b. In a sentence or two, explain the basis for this decade’s Nikkei performance. c. What impact did the Nikkei performance have on the Japanese GDP? Explain the connection. (9 pts) 2. Let 1995 be the base year. Assume that for 1995: $Y = $67 Assume that for 2005: $Y = 82.25, and Y = $72.70 a. Find t ...
... b. In a sentence or two, explain the basis for this decade’s Nikkei performance. c. What impact did the Nikkei performance have on the Japanese GDP? Explain the connection. (9 pts) 2. Let 1995 be the base year. Assume that for 1995: $Y = $67 Assume that for 2005: $Y = 82.25, and Y = $72.70 a. Find t ...
Review: Short and Long Run Compared
... investment. Increased investment will mean that the capital stock and thus real GDP grow more rapidly. The capital inflow constitutes a reduction in net foreign investment, and thus a reduction in the demand for loanable funds in the domestic economy, reducing the interest rate and stimulating domes ...
... investment. Increased investment will mean that the capital stock and thus real GDP grow more rapidly. The capital inflow constitutes a reduction in net foreign investment, and thus a reduction in the demand for loanable funds in the domestic economy, reducing the interest rate and stimulating domes ...
Real Business Cycles Basic idea
... • This will lower actual and potential output, revenues, so some of the aimed-for surplus will be lost. • DeLong and Summers argue that the net present value of government surplus is zero for austerity in a depression. Lesson: Run surpluses in booms so that can run deficits in depressions. ...
... • This will lower actual and potential output, revenues, so some of the aimed-for surplus will be lost. • DeLong and Summers argue that the net present value of government surplus is zero for austerity in a depression. Lesson: Run surpluses in booms so that can run deficits in depressions. ...
Fiscal Policy
... expansion / size believe in increased government spending during recessions and tax increases to curb inflation. • Economists who want to reduce or limit the size of government believe in tax cuts during recessions and reduced spending to curb inflation. ...
... expansion / size believe in increased government spending during recessions and tax increases to curb inflation. • Economists who want to reduce or limit the size of government believe in tax cuts during recessions and reduced spending to curb inflation. ...
20130607--Fiscal Policy Issues in the United States
... In the words of Chairman Bernanke: “High unemployment has substantial costs… the harm done to the vitality and productive potential of our economy as a whole….The loss of output and earnings associated with high unemployment also reduces government revenues and increases spending, thereby leading to ...
... In the words of Chairman Bernanke: “High unemployment has substantial costs… the harm done to the vitality and productive potential of our economy as a whole….The loss of output and earnings associated with high unemployment also reduces government revenues and increases spending, thereby leading to ...
Name - Instructure
... For macroeconomists, the short run is a period in which wages (and other input prices) do not respond to price level changes. There are at least two reasons why nominal wages may remain constant for a while even though the price level has changed. 1. Workers may not be aware of price level changes, ...
... For macroeconomists, the short run is a period in which wages (and other input prices) do not respond to price level changes. There are at least two reasons why nominal wages may remain constant for a while even though the price level has changed. 1. Workers may not be aware of price level changes, ...
File
... gap. There will be unemployment, low growth and / or a fall in output. A negative output gap will typically cause low inflation or even deflation. Positive Output Gap • It will involve firms asking workers to overtime. • There will be inflationary pressures. It will also tend to cause a bigger curre ...
... gap. There will be unemployment, low growth and / or a fall in output. A negative output gap will typically cause low inflation or even deflation. Positive Output Gap • It will involve firms asking workers to overtime. • There will be inflationary pressures. It will also tend to cause a bigger curre ...
The AD-AS Model: Short-run vs. Long-run Equilibrium Long
... the economy is producing its potential GDP, resources are fully employed, and the natural rate of unemployment prevails. While the AD-AS model is much more complex than the PPC model, it may be helpful to picture an economy operating at a point on its PPC when it is in long run equilibrium. This lon ...
... the economy is producing its potential GDP, resources are fully employed, and the natural rate of unemployment prevails. While the AD-AS model is much more complex than the PPC model, it may be helpful to picture an economy operating at a point on its PPC when it is in long run equilibrium. This lon ...
Answers to Questions in Chapter 14
... (b) Increase in injections (investment). (c) Decrease in withdrawals (net taxes). (d) Increase in withdrawals (saving). Note that `investing' in credit unions is really ...
... (b) Increase in injections (investment). (c) Decrease in withdrawals (net taxes). (d) Increase in withdrawals (saving). Note that `investing' in credit unions is really ...
Why a Credible Budget Strategy Will Reduce Unemployment and
... For example, as shown in Figure 5, with the House Budget Resolution government outlays actually would grow at 2.8 percent per year over the ten years from 2012-2021 under the CBO projection that nominal GDP will grow at 4.6 percent per year. Faster GDP growth than 4.6 percent will bring a balanced b ...
... For example, as shown in Figure 5, with the House Budget Resolution government outlays actually would grow at 2.8 percent per year over the ten years from 2012-2021 under the CBO projection that nominal GDP will grow at 4.6 percent per year. Faster GDP growth than 4.6 percent will bring a balanced b ...
Risks in the Global Economy
... • Perspective from theory of a benevolent government: Suppose the government has an unchanging objective, say, to maximize some measure of the present value of citizens’ welfare over time Theoretical implication: The resulting optimal government policy is inconsistent over time; it requires a commi ...
... • Perspective from theory of a benevolent government: Suppose the government has an unchanging objective, say, to maximize some measure of the present value of citizens’ welfare over time Theoretical implication: The resulting optimal government policy is inconsistent over time; it requires a commi ...
Argentina_en.pdf
... moratorium law for people who had not met all the conditions for a retirement pension. This will include about 470,000 new retirees, thus universalizing coverage for older adults. In addition, a new Hydrocarbons Act was passed in October, creating a new legal framework that provides for the exploita ...
... moratorium law for people who had not met all the conditions for a retirement pension. This will include about 470,000 new retirees, thus universalizing coverage for older adults. In addition, a new Hydrocarbons Act was passed in October, creating a new legal framework that provides for the exploita ...