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Lecture 1 - UTA Economics
Lecture 1 - UTA Economics

... of Selected NIPA Tables” then Table 1.1.6. Graph the business cycle for the last 10 years, and identify the phases of the business cycle that our economy has experienced in this time period. Rule-of-thumb Definition of Depression “Decline in per-person GDP or consumption by 10% or more”—Economist Ro ...
Document
Document

... A recession is officially defined as at least two consecutive quarters of real GDP decline. A trough is the turning point in national output between recession and recovery. During a recovery, there is an upturn in the business cycle during which real GDP rises. ...
Fiscal Policy
Fiscal Policy

... more jobs and increases Aggregate Demand which causes prices to rise. Ultimately, this leads to an increase in output and lower unemployment ...
Aggregate Supply & Aggregate Demand
Aggregate Supply & Aggregate Demand

... – Labor unions with long-term contracts resist wage cuts. – Lowering wages not ideal way to increase inflation because it reduces income. ...
Unit 1 Basic Macroeconomic Terminology
Unit 1 Basic Macroeconomic Terminology

... Producer price index (PPI): measure of average prices received by producers. Cost of Living Adjustment (COLA): increase in wages that is designed to match increases in prices of items purchased by the typical household. Inflation: a sustained rise in the average level of prices Demand-pull inflation ...
Monthly Economic Commentary
Monthly Economic Commentary

... growth forecast for most of the major advanced economies, warning that road to recovery will remain ‘bumpy’. The IMF now predicts that global growth will be 3.3% in 2013, down from an earlier forecast of 3.5%, before picking up to 4% in 2014. The US is expected to outperform other advanced economies ...
Why Has This Recession Not Produced a Price Deflation?
Why Has This Recession Not Produced a Price Deflation?

... very low, but people also believe that they will be realized because Central Banks are autonomous of governments and hence carry credibility. All this keeps the actual inflation rates low; and the IMF concludes that Central Banks should be made autonomous of governments wherever (as in India) they a ...
Ideally, Fiscal Policy would be conducted by a squirrel.
Ideally, Fiscal Policy would be conducted by a squirrel.

... One way to rein in these spendthrift politicians would be to force them to spend only as much as they collected in revenue… this is called a Balanced Budget Amendment. ...
INVESTING
INVESTING

... DEFICITS AND DEBT DEFINITIONS ...
Deficits, Debt, and the Fiscal Cliff - Rose
Deficits, Debt, and the Fiscal Cliff - Rose

...  The “fiscal cliff” would amount to a shift to austerity – but having the public sector deleverage while the private sector continue its deleveraging process could be detrimental to economic performance.  Congressional Budget Office (2012), “Economic effects of reducing the fiscal restraint that i ...


... (Based on the June 8, 2011, Beige Book and authors’ analyses.)  Economic activity in the Twelfth District continued to expand at a moderate pace during the reporting period of late April through the end of May.  Sales of retail items rose further, while demand for business and consumer services wa ...
stimulus spending doesn`t work - Let`s Get Down to Business
stimulus spending doesn`t work - Let`s Get Down to Business

... average marginal tax rate raises the following year's GDP growth rate by around 0.6% per year. However, this effect is harder to pin down over longer periods that include the world wars and the Great Depression. It would be useful to apply our U.S. analysis to long-term macroeconomic time series for ...
Last day to sign up for AP Exam
Last day to sign up for AP Exam

... We have a recessionary gap so the government spends to increase AD. The increase in AD causes an increase in price level and interest rates. U.S. goods are now more expensive and the US ...
Business Cycles
Business Cycles

... always falling. But other conditions, such as price levels and unemployment, may vary. Economists created terms to describe contractions with different characteristics and levels of severity. They include: • Recession If real GDP falls for two consecutive quarters (at least six straight months), the ...
Lecture 4 Business Cycles and Aggregate Supply and
Lecture 4 Business Cycles and Aggregate Supply and

... BUSINESS CYCLES AND AGGREGATE DEMAND ...
Strategijsko pozicioniranje
Strategijsko pozicioniranje

... • Govt raise large amounts of revenue trough taxation (surplus and deficit of the budget) • Govt often face budget deficit therefore have a public sector borrowing requirements (sign of an economy difficulties) • high level of public borrowing tends to have impact on: – Interest rates (high interest ...
Macroeconomics
Macroeconomics

... don’t get sold, producers need to cut production, people get laid off (bad). ...
Unit 3: Microeconomic Concepts
Unit 3: Microeconomic Concepts

... Why do you think the expansion on your chart is divided between a recovery and prosperity? How do you find the start of prosperity? How long must a contraction last before it can be considered a recession? ...
Unemployment Rate - The University of Chicago Booth School of
Unemployment Rate - The University of Chicago Booth School of

... Consumers (refer to expenditure of consumers as “consumption”) Businesses (refer to expenditure of firms as “investment”) Governments (refer to expenditures of governments as “government spending”) Foreign Sector (refer to expenditures of foreign sector as “exports”) ...
Business Cycles and Fluctuations
Business Cycles and Fluctuations

... • The Great Depression was caused by various factors, including excessive borrowing in the 1920s and global economic conditions. • Since the Great Depression, the United States has experienced several recessions, but each was short compared with the recovery that followed. ...
slides are here - Stephen Kinsella
slides are here - Stephen Kinsella

... Role of policy is to get out of the way of this price correction. Keynes: aggregate/effective demand must be controlled to ensure high levels of employment and output. Keynesian theory elaborated by Minsky/Tobin/Godley, of whom much more later. Post 1960s, New Classicals abandoned Effective demand, ...
GDP
GDP

... of relatively rapid growth of output (recovery and prosperity), and periods of relative stagnation or decline (contraction or recession). ...
Economic Stability - Cameron Economics
Economic Stability - Cameron Economics

... attempted to keep prices high (remember prices were being held down because monetary policy was actually contractionary, keeping prices low through keeping the amount of money supply in the economy low) by asking that industry not reduce the prices of their products and not reduce the wages of their ...
Colorado to see continued moderate growth in 2012, forecasts CU... July 5, 2012  Richard Wobbekind
Colorado to see continued moderate growth in 2012, forecasts CU... July 5, 2012 Richard Wobbekind

... CUT 2 “One of the things that’s been really positive is that there has been job growth across a wide array of sectors. So it’s really balanced growth which is symptomatic of broad-based recovery in the economy. (:13) Not only in the primary industries but some of the feeder industries have picked up ...
Lecture 1 - UTA Economics
Lecture 1 - UTA Economics

... saved by consumers will be spent on investment goods by firms. Total expenditures will be sufficient to purchase all goods and services produced. In the Classical view, saving and investment both depend on the interest rate. Even more complicated classical story: People also spend part of their inco ...
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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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