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Beyond GDP: The Need for New Measures of Progress
Beyond GDP: The Need for New Measures of Progress

... World Bank as the primary measure of economic progress in the ensuing 60 years. With the restructuring of these institutions in the 1970s, the US has had a less dominant position within the World Bank and the IMF; however, GDP remains the most widely used measure of economic progress. Economists hav ...
Chapter 26 - Inflation and Monetary Policy
Chapter 26 - Inflation and Monetary Policy

... The Natural Rate of Unemployment • In Phillips curve diagram, we’ve assumed that economy’s natural rate of unemployment is known and remains constant – Signified by vertical long-run Phillips curve at some value UU ...
Chapter 13 - the School of Economics and Finance
Chapter 13 - the School of Economics and Finance

... In the new short-run macroeconomic equilibrium, real GDP declines below its potential level and the economy moves into a recession. Economists refer to the process of adjustment back to potential GDP as an automatic mechanism because it occurs without any actions by the government. © 2013 Pearson Ed ...
Is the Italian public debt really unsustainable? An historical
Is the Italian public debt really unsustainable? An historical

... a strong reduction and a minimum peak of 25% reached in 1947, after which the debt stabilised around an average of about 31% (global minimum, see Table 1). This favourable performance of the public imbalances was explained by two main facts: first, the flattering economic growth experienced during t ...
Exhibit 11 Keynesian aggregate expenditures model
Exhibit 11 Keynesian aggregate expenditures model

... a. Incorrect. See the correct formula in answer c. b. Incorrect. See the correct formula in answer c. c. Correct. AE = C + I + G + (X - M). d. Incorrect. See the correct formula in answer c. 2. In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then a. inventory i ...
Is there a Link Between GDP Growth and Equity Returns?
Is there a Link Between GDP Growth and Equity Returns?

... This decoupling effect is amplified because the biggest firms in each country, and consequently in each country index, tend to be multinational companies. This decoupling between company listing and company contribution to GDP may disappear if we consider an aggregate of countries. Indeed, by taking ...
Alert Mechanism Report
Alert Mechanism Report

... debtor countries, but the rebalancing process remains uneven. Internal stock imbalances are adjusting slowly on the back of the low nominal growth environment, and progress is uneven. The banking sector witnesses reduced profitability prospects and a legacy of non-performing loans in some countries. ...
How Do Monetary and Fiscal Policy Shocks Explain US
How Do Monetary and Fiscal Policy Shocks Explain US

... methodology as in Dungey and Fry (2009) and Fry and Pagan (2007), with the federal funds rate ordered last. Several …ndings emerge from this study. The impact of the government spending shock on output is longer lasting and explains more variability in macroeconomic variables compared to a governmen ...
AP Macro - Sect. 4 PP no bkgd
AP Macro - Sect. 4 PP no bkgd

... 3. Change in Existing Physical Capital Investment spending depends on how much physical capital firms already have - Ex: housing market 4. Fiscal Policy Govt. spending and taxation policies effect aggregate demand as it effects consumers’ disposable income 5. Monetary Policy The Federal Reserve cha ...
The Czech National Bank`s Role Since the Global Crisis
The Czech National Bank`s Role Since the Global Crisis

... the expansionary fiscal anti-crisis package implemented in 2009 and the gradual recovery in Europe. The subsequent deterioration of the households’ confidence indicator mirrored the implications of the fiscal consolidation package being carried out from in 201018 and the slowdown of the Czech econom ...
Assessment of the 2015 Convergence Programme for CROATIA
Assessment of the 2015 Convergence Programme for CROATIA

... In the Commission 2015 spring forecast, the general government deficit in 2015 is projected at 5.6% of GDP, an improvement of 0.1 pp. of GDP compared to the outturn in 2014. The difference between the Convergence Programme target for 2015 and the Commission 2015 spring forecast reflects slightly low ...
Fifty Years of Fiscal Planning and Implementation in the
Fifty Years of Fiscal Planning and Implementation in the

... using real-time data. The advantage of using real-time information is that our data is as close as possible to the data that was available to the policymakers at the moments they had to take their decisions about the future budget and its actual implementation. An analysis based on those data is mos ...
Preview Sample 1
Preview Sample 1

... 5) The production approach to measuring GDP requires ________. A) that the market value of a given good is a reasonable approximation of its economic value B) that all goods and services be added up before assigning a market value C) that no good or service rendered outside the market be included i ...
Ch 6 Measuring Total Output and Income
Ch 6 Measuring Total Output and Income

... Gross private domestic investment includes three flows that add to or maintain the nation's capital stock: expenditures by business firms on new buildings, plants, tools, equipment, and software that will be used in the production of goods and services; expenditures on new residential housing; and c ...
Measuring the Economy*s Performance By J. A. Sacco
Measuring the Economy*s Performance By J. A. Sacco

... Actual factor payments made to owners of the factors of production. When added together we still do not have GDI. Must add two other ...
CHAPTER OVERVIEW
CHAPTER OVERVIEW

... for income maintenance. Such periods included 1974-75, 1980-82, 1990-91. B. Quantitative aspects of the debt are found in Table 10-1. Note that the absolute level in column 2 is not meaningful without comparison of the relative size of debt and interest payments to the nation’s ability to pay, as es ...
NBER WORKING PAPER SERIES GOLD STERILIZATION AND THE RECESSION OF 1937-38
NBER WORKING PAPER SERIES GOLD STERILIZATION AND THE RECESSION OF 1937-38

... percent and industrial production plunged 30 percent between the second quarter of 1937 and the first quarter of 1938. The civilian unemployment rate, still high in the aftermath of the Great Depression, rose from 9.2 percent to 12.5 percent.1 Because this sharp downturn occurred when recovery from ...
Sample
Sample

... 5) The production approach to measuring GDP requires ________. A) that the market value of a given good is a reasonable approximation of its economic value B) that all goods and services be added up before assigning a market value C) that no good or service rendered outside the market be included i ...
New Tools for Analyzing the Mexican Economy
New Tools for Analyzing the Mexican Economy

... economic data to monitor business cycle developments more closely.2 One method of monitoring business cycles in Mexico is through the construction of composite indexes of leading and coincident indexes. The U.S. composite index of leading economic indicators, published monthly by the Conference Boar ...
RQ_ANS
RQ_ANS

... In the country of Mainia, GDP consists of cranberries and maple syrup. In 2002, 50 units of cranberries are sold at $20 per unit, and 100 units of maple syrup are sold at $10 per unit. If the price of cranberries was $10 per unit and the price of maple syrup was $15.00 per unit in 2001, the base yea ...
National Income Accounting PPT
National Income Accounting PPT

... Final goods and services are goods and services used for final consumption Intermediate goods are those goods which are produced by one firm and used in the production process by another firm ...
Secular stagnation, debt overhang and other rationales for sluggish
Secular stagnation, debt overhang and other rationales for sluggish

... market access and official rescue funds are insufficient to completely bridge the gap. Of course, the constraints that periphery countries faced were profoundly affected by northern Europe’s reluctance to allow restructuring of private debts, even in cases where sustainability was deeply in question ...
Using Exogenous Changes in Government Spending to estimate
Using Exogenous Changes in Government Spending to estimate

... The effects of changes in government spending on macroeconomic activity has drawn considerable attention from economists. This strand of literature has mainly used two methodologies to estimate size of government spending multipliers. The first methodology - the Vector Autoregression (VAR) technique ...
Measuring the real Impact of Imports on Jobs
Measuring the real Impact of Imports on Jobs

... that the import growth of goods, adjusted for price changes, have been underestimated by roughly $117 billion since 2007 (in 2011 dollars). Moreover, we find undercounting real imports leads to a distortion in most of the official statistics that keep track of economic activity, including real GDP, ...
Chapter 16 Macroeconomic Policy in an open economy
Chapter 16 Macroeconomic Policy in an open economy

... © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password‐protected website for classroom use ...
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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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