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Q2 - Don`s Economic Blog
Q2 - Don`s Economic Blog

... and it’s going to take considerable time for healing. First of all, we all need to understand that the greatest growth factor in the American economy (or any economy) is net investment in what the Austrians call higher production goods. Goods such as machine tools or those for the extraction of raw ...
Pros and Cons of Fiscal and Monetary Policy
Pros and Cons of Fiscal and Monetary Policy

... activities (such as Japan’s yen carry trade.) Fed’s change in interest rate is applied nationally – some areas in the country might not need the stimulus, while states with high unemployment might need the stimulus. Reluctant lenders (Banks may be unwilling to lend, especially if overwhelmed by bad ...
Lessons of the Great Depression
Lessons of the Great Depression

... The consensus view  “The worst financial crisis in the history of the United States and many other countries started in 1929. The Great Depression followed. The second-worst struck in the fall of 2008 and the Great Recession followed. Commentators have dwelt endlessly on the causes of these and ot ...
Automatic Stabilizers
Automatic Stabilizers

... – Income Tax System: As an individual’s nominal income increases, he or she moves into higher tax brackets and pays more taxes, thus limiting the increase in disposable income and consumption – Unemployment Compensation: As the economy slows and unemployment increases, the income of the unemployed d ...
Fiscal and Monetary Policy Process
Fiscal and Monetary Policy Process

... of our economy. If consumer confidence in the economy falls and people reduce their spending, aggregate demand can fall, reducing real output and prices and possibly dropping the country into a recession. However, if the money supply is too large, excessive consumer demand can push up the aggregate ...
1. Crash Course Macro 5 video student fill in
1. Crash Course Macro 5 video student fill in

... Underemployed – might be working part time, or in a lower skill job than what they are qualified for – do not count in the unemployment rate The official unemployment rate UNDERESTIMATES problems in the labor market Ex: if there is 7% unemployment rate (= about 10 million people unemployed) ; There ...
Potential GDP
Potential GDP

... real GDP may be higher or lower than potential GDP. • The output gap is the difference between actual and potential GDP. • The output gap is negative when actual GDP is less than potential, and positive when the output is greater than potential. ...
Lesson 23.2
Lesson 23.2

... real GDP goes down for six straight months. An average recession lasts about one year. Recessions are painful times. The economy declines and many people lose their jobs. ...
Section 41 - Carsonville Port Sanilac
Section 41 - Carsonville Port Sanilac

... oil prices rise to the end result of recession. The real business cycle theory states that these changes in natural resources and technology are responsible for fluctuations in the economy. Monetarists believe that active control of the money supply causes the business cycle to fluctuate. Refer to t ...
KW2_Ch06_FINAL
KW2_Ch06_FINAL

... In the last 50 years or so, real GDP per capita has grown about 3.5% per year. 28 of 40 ...
The Business Cycle
The Business Cycle

... In the last 50 years or so, real GDP per capita has grown about 3.5% per year. 28 of 40 ...
Glossary of Terms 1 Inflation A general and sustained increase in
Glossary of Terms 1 Inflation A general and sustained increase in

... people have more money to spend. If real GDP declines over consecutive periods, the economy is likely to go into recession. The number of people without jobs increases as businesses lay off workers, and consumers have less money to spend. ...
still the word du jour - Thomas R. Brown Foundations
still the word du jour - Thomas R. Brown Foundations

...  Demand productivity and effectiveness from Washington  Simplify and reform tax code  Don’t make promises we can’t keep ...
ECONOMIC DIP, DECLINE OR DOWNTURN? AN EXAMINATION OF
ECONOMIC DIP, DECLINE OR DOWNTURN? AN EXAMINATION OF

... the beginning of a recession’ (NBER, 2008). Furthermore, despite the broadness of the factors they look at, the NBER have never announced a recession without at least one quarter of negative GDP growth – seemingly indicating GDP does play a large role in defining recessions no matter what other indi ...
FedViews
FedViews

... CNN/Opinion Research Corporation Poll in September, more than 70% of those surveyed thought the U.S. economy was still in a recession. ...
On the Record - Federal Reserve Bank of Dallas
On the Record - Federal Reserve Bank of Dallas

... Faring better hasn’t meant escaping recession, and the state did confront some fiscal turbulence in 2009. Several one-time revenue gains, including $6 billion in federal stimulus funding, offset declining tax receipts and enabled Texas to maintain services without drawing down the state’s rainy-day ...
Macroeconomics – Fiscal Policy
Macroeconomics – Fiscal Policy

... macroeconomy. ► It has nothing to do with Nazi dictators and dancing cats.* ...
Sample exam, page
Sample exam, page

... 30. A politically liberal economist who favored expanded government would recommend: A) tax cuts during recession and reductions in government spending during inflation. B) tax increases during recession and tax cuts during inflation. C) tax cuts during recession and tax increases during inflation. ...
The Sluggish Recovery from the Great Recession: Why There Is No `V`
The Sluggish Recovery from the Great Recession: Why There Is No `V`

... he Great Recession of 2008–09 was by far the most severe United States economic downturn since the Great Depression of the 1930s. Real gross domestic product (GDP), the most comprehensive measure of U.S. economic activity, topped out in fourth quarter 2007 and has yet to approach that peak. Employme ...
Neo Keynesianism
Neo Keynesianism

... inflation rate (as measured by the GDP deflator). The Phillips curve of the 1960s breaks down in the early 1970s, just as Friedman and Phelps had predicted. Notice that the points labeled A, B, and C in this figure correspond roughly to the points in Figure 5. ...
When Punxsutawney Phil did not see his shadow on February 2, the
When Punxsutawney Phil did not see his shadow on February 2, the

... the odds of the weaker countries going into default are quite small, but some restructurings are more likely. There could be some contagion from restructuring as fears spread to other forms of debt. In the U.S., state and local budget problems are heating up. A number of states have used all their “ ...
Diapositiva 1 - Banco de España
Diapositiva 1 - Banco de España

... At the level of European institutions: • The new procedures that arose from the governance reform were firmly established (European Semester, Macroeconomic Imbalance Procedure) • The budget deficit targets were revised to attune them more closely to the cyclical conditions of each economy. • The des ...
Presentation to Security Analysts of San Francisco Omni Hotel, San Francisco
Presentation to Security Analysts of San Francisco Omni Hotel, San Francisco

... There are many ways to interpret these quarterly numbers. And my own interpretation is that it makes some sense to look at them together—as a high balanced by a low. ...
Macroeconomic
Macroeconomic

... What are the three central macroeconomic concepts? How are the natural real GDP and the natural unemployment rates related to each other and to the rate of inflation? What are the main concerns of short-run versus long-run macro economic policy? What is meant by the real GDP gap? How does business c ...
Economic Review, May 2013 - Office for National Statistics
Economic Review, May 2013 - Office for National Statistics

... in 2001.This compares with the annual rate of consumer price inflation of 2.8% in March 2013, indicating a renewed squeeze on households’ real purchasing power. ...
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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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