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POLS 306
POLS 306

...  What it means: The interest rate at which an eligible financial institution may borrow funds directly from a Federal Reserve bank. Banks whose reserves dip below the reserve requirement set by the Federal Reserve's board of governors use that money to correct their shortage. The board of directors ...
Chapter 23 Government and the Economy
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... its highest point and then begins to decline  A recession takes place when real GDP goes down for six straight months ...
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... Currently, Americans pay taxes that total somewhat less than 30 percent of the ...
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TOPIC: Small Entrepreneurial Businesses and Recession

... Recession is a business cycle contraction, and it refers to a general slowdown in economic activity for two consecutive quarters. During recession, there is usually a decline in certain macroeconomic indicators such as GDP, employment, investment spending, capacity utilization, household income, bus ...
Barry Eichengreen Kevin H. O`Rourke 6 April 2009, VOX
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... In fact, when we look globally, as in Figure 1, the decline in industrial production in the last nine months has been at least as severe as in the nine months following the 1929 peak. (All graphs in this column track behaviour after the peaks in world industrial production, which occurred in June 19 ...
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1. Gross Domestic Product (GDP)

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Economic Forecast for 2014 & Beyond

... What to make of all this? • Growth in the last part of 2013 will likely be at most around 3%, maybe lower. – Not enough to make major progress in terms of reducing unemployment; no surprise if rate remains above 7% over the rest of the year – Combined with growth of about 1.5% in the first half, ov ...
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... Mathematical approximation of the effect of growth Approximate number of years required to double GDP = 70/ (annual percentage rate of growth) ...
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ECN 111 PRINCIPLES OF MACROECONOMICS SOLUTIONS TO

... growing faster than long-run aggregate supply, they have two options. The federal government can either (1) increase taxes [T] or (2) decrease government purchases [G]. This strategy is called a “contractionary fiscal policy.” By increasing taxes or decreasing G, the government is reducing aggregate ...
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How to Get Back to Growth

... permanently fallen due to the banking crisis. Some of the fall in the level of productivity after 2008 is due to the financial crisis, but much is also due to depressed demand in the UK and around the developed world – a position that is made worse by rapid austerity programs. Professor Nick Crafts ...
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... • It is the sum of the rate of inflation and the unemployment rate • Increasing rates indicate a worsening economic situation • Decreasing rates indicate an improving economic situation • Also known as the “Discomfort Index” ...
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... measured at current prices Æ not a good measure of economic well-being - Real GDP: the value of goods and services measured at constant prices Æ RGDP is not influenced by changes in prices - Real GDP per person: income of the average person in the economy (fig. 1-1, p. 4) Æ Boom vs. Recession (Depre ...
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FRBSF L CONOMIC

... monetary policy. Few would challenge the Fed’s recent record at controlling inflation. But many question the effectiveness of the Fed’s emergency response to the 2007–08 financial crisis and the recession associated with it. The Federal Reserve was itself born out of the Panic of 1907, a financial c ...
Textbook Chapter 4 (pages 43-53)
Textbook Chapter 4 (pages 43-53)

... Prosperity – a period when consumers earn lots of money & are spending it! Demand for G&S is at its highest point; Production is at its highest point, unemployment is at its lowest point (lots of people are working) ...
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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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