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Chapter 3 - Economic Challenges Facing Global and Domestic
Chapter 3 - Economic Challenges Facing Global and Domestic

... research and development, capital improvements. • Consumers can purchase more. • Low interest rates encourage major consumers purchases, such as cars. • Deflation Falling prices, which can weaken the overall economy. Measuring Price Level Changes The U.S. government tracks price changes through the ...
economics and politics.ppt
economics and politics.ppt

... KEYNESIAN ECONOMIC THEORY Business cycle fluctuations result from imbalances between aggregate demand and productive capacity • Aggregate demand is the total amount of money available in the economy to be spent on goods and services • Productive capacity is the total value of goods and services tha ...
Chapter 04
Chapter 04

... nation’s people have. It reflects quality of life.  Inflation rate – refers to rising prices. Low rate of 1-5% is stable.  (CPI) Consumer Price Index – measures the change in price over time of some 400 specific goods and services used by the average urban household.  Business Cycle – the recurri ...
The Business Cycle
The Business Cycle

... sinusoidal-like cycles in the modern (capitalist) world economy. Kondratieff identified three phases in the cycle: expansion, stagnation, recession. More common today is the division into four periods with a turning point (collapse) between the first and second phases. ...
GOAL 9 MONSTER REVIEW Measuring the Economy GDP – Gross
GOAL 9 MONSTER REVIEW Measuring the Economy GDP – Gross

... 14. Setting a ________________ places a limit on the amount of goods that are imported into a country. 15. What terms means removing government regulations from business? 16. Today, what term is used to describe a country that is primarily agricultural? 17. Today, what term is used to describe count ...
The Great Depression
The Great Depression

... they rushed to the banks and demanded their deposits in Fall of 1930, Spring and Fall of1931, and Fall of 1932 &33 Many banks found themselves short of funds because they could not liquidate loans Response: FDR declared a national “bank holiday” on March 9, 1933 that closed down banks until deemed s ...
Chapter 21 - Economic Fluctuations
Chapter 21 - Economic Fluctuations

... – Assumes workers and firms, with aid of markets, can work things out and enjoy the benefits of producing and trading – Classical model is right • People will work things out…eventually ...
Talking Points Presentation  - Federal Reserve Bank of St. Louis
Talking Points Presentation - Federal Reserve Bank of St. Louis

... spending and/or increases in taxes, in theory are thought to decrease overall demand for goods and services. These actions move the budget position toward a surplus. Contractionary policies are rarely used. 4. If the government runs a deficit, it borrows to cover the deficit spending. This borrowing ...
70% - TheAllPapers
70% - TheAllPapers

... DC (SM/CGW) 35979/3 © UCLES 2011 ...
What happens when the Fed buys bonds?
What happens when the Fed buys bonds?

... consumers are more likely to take out loans  consumers and businesses borrow money and use it for consumption and investment spending  C and I  AD  RGDP and PL ...
PRESS RELEASE Job Watch: State`s unemployment up, job growth
PRESS RELEASE Job Watch: State`s unemployment up, job growth

... Job Watch: State’s unemployment up, job growth flattens Nationally, consumer inflation down, real wages rising ALBUQUERQUE—New Mexico unemployment rose by more than one third -- or from 3,400 to 41,800 persons -- between October 2007 and October 2008. Over that same time period, job growth was negli ...
Editors` Summary - Brookings Institution
Editors` Summary - Brookings Institution

... prices in the mid-2000s. This price growth in turn fueled (and was reinforced by) an explosion of securitization of mortgage loans into assets whose risk characteristics were often poorly understood and that were often held by highly leveraged institutions. When home prices began to fall in 2006, th ...
Lecture 7
Lecture 7

... » Note: In order to add up all the different things an economy produces, one uses a currency value. » For example, in the U.S., we use the dollar value of the total quantity of goods and services produced in the U.S. in a given period. » This is basically what we call “Gross Domestic Product” or GDP ...
Crisis no More - Brookings Institution
Crisis no More - Brookings Institution

... grow in the second half of that year, the recession continues to take a terrible toll on the incomes and psychological health of many families. No one should confuse the recent recession with the Great Depression, however. Two key features of that depression made it “Great”—its severity and its dura ...
FedViews
FedViews

... Of course, our current estimate of supply-side conditions or potential GDP could be revised lower. There are other downside risks as well. Recent surveys show waning consumer confidence, which could lead to slower consumption growth. Another risk is that business equipment spending may not pick up. ...
Ch. 23 - RobbsHistorians
Ch. 23 - RobbsHistorians

... • To Keep track of inflation, the government samples prices every month for about 400 products commonly used by consumers. • The prices of these 400 items make up the consumer price index (CPI)—A popular measure of the price level. ...
Macro Theory
Macro Theory

...  Unemployment rate = 6.6% (Or, higher if others included and calculations constant.) ...
Australia`s economy drifts towards disaster with no
Australia`s economy drifts towards disaster with no

... The downside for borrowers is that the cut is driven, in part, by low inflation: CPI inflation for the last twelve months has been only 1.0 per cent. In a period of reasonable inflation most people can rely on increases in nominal incomes, which means the burden of their mortgage debt (fixed in doll ...
Acting to Avoid a Great Stagnation
Acting to Avoid a Great Stagnation

... rather than calendar dates or amounts purchased Communicating that we anticipate low short-term rates likely to be warranted at least through mid2015; accommodative until recovery is sustainable Context of price stability; assessment of costs, efficacy ...
www.utahscreditunions.org
www.utahscreditunions.org

... though more able to borrow today compared to the recent past, reflect a strong unwillingness to do so. ...
FedViews
FedViews

... sales eased in August, although new home sales were up. ...
The Business Cycle
The Business Cycle

... double GDP = 70/ (annual percentage rate of growth) ...
How the American Free Enterprise System Creates
How the American Free Enterprise System Creates

... country has seen no less than thirteen recessions. Although some would say that we are still recovering from the impact of what some call the “Great Recession” that began in December 2007, technically that recession ended in June 2009 when the country’s GDP (Gross Domestic Product) slowly began grow ...
“Classical” economic theory and “Keynesian
“Classical” economic theory and “Keynesian

... The very act of producing goods generates an amount of income = to the value of the goods produced. “Supply Creates Its Own Demand” There will always be sufficient consumption Works as a “LONG RUN” view ...
FedViews
FedViews

... Favorable medium-term trends in oil prices should push down headline inflation even a bit lower. ...
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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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