Income distribution and borrowing. A New Cambridge model for the
... The “New Cambridge hypothesis” In the 1970s, Godley and his group used the financial balances identity as the basis for a model of the UK economy. For the private sector as a whole, the difference between saving and investment is equal to the net acquisition of financial assets (NAFA), which in tur ...
... The “New Cambridge hypothesis” In the 1970s, Godley and his group used the financial balances identity as the basis for a model of the UK economy. For the private sector as a whole, the difference between saving and investment is equal to the net acquisition of financial assets (NAFA), which in tur ...
The Keynesian Framework
... • Preoccupied with what determined the level of real economic activity during long periods of recession or depression • If economy were sufficiently depressed, could experience increases in real output without any increase in the price level • Assumed that the price level is fixed • Focused on aggre ...
... • Preoccupied with what determined the level of real economic activity during long periods of recession or depression • If economy were sufficiently depressed, could experience increases in real output without any increase in the price level • Assumed that the price level is fixed • Focused on aggre ...
Chapter 16
... GDP as a Welfare Measure GDP per capita is positively associated with several measures of well-being Material standard of living: more goods and services Health and life expectancy Residents of industrialized countries fare better than residents of developing countries in a range of ...
... GDP as a Welfare Measure GDP per capita is positively associated with several measures of well-being Material standard of living: more goods and services Health and life expectancy Residents of industrialized countries fare better than residents of developing countries in a range of ...
INFLATION AND UNEMPLOYMENT IN THE EU: COMPARATIVE
... This occurred in the EU and the USA in the months when the current financial crisis reached its peak in 2009, when in shorter intervals there was a minimal price decrease (Δπ) followed by output drop (-ΔY). Figure 2: Long-term Phillips curve and long-term aggregate supply ...
... This occurred in the EU and the USA in the months when the current financial crisis reached its peak in 2009, when in shorter intervals there was a minimal price decrease (Δπ) followed by output drop (-ΔY). Figure 2: Long-term Phillips curve and long-term aggregate supply ...
Presidents and the Economy: A Forensic Investigation
... while it rose by 1.1 percentage points, on average, during Republican terms--yielding a large and statistically significant D-R gap of -1.9 percentage points. Delving into the sectoral details (Table 3), the growth rates of every major component of real GDP except exports were higher under Democrat ...
... while it rose by 1.1 percentage points, on average, during Republican terms--yielding a large and statistically significant D-R gap of -1.9 percentage points. Delving into the sectoral details (Table 3), the growth rates of every major component of real GDP except exports were higher under Democrat ...
The financial cycle and macroeconomics
... from 1 to 8 years: this is the range that statistical filters target when seeking to distinguish the cyclical from the trend components in GDP. By contrast, the average length of the financial cycle in a sample of seven industrialised countries since the 1960s has been around 16 years. Graph 1, take ...
... from 1 to 8 years: this is the range that statistical filters target when seeking to distinguish the cyclical from the trend components in GDP. By contrast, the average length of the financial cycle in a sample of seven industrialised countries since the 1960s has been around 16 years. Graph 1, take ...
A Level Economics Mark Scheme Unit 2 JAN 2012
... Where the student’s response to a question is such that the mark scheme permits full marks to be awarded, full marks MUST be given. A perfect answer is not necessarily required for full marks. But conversely, if the student’s answer does not deserve credit, then no marks should be given. Occasionall ...
... Where the student’s response to a question is such that the mark scheme permits full marks to be awarded, full marks MUST be given. A perfect answer is not necessarily required for full marks. But conversely, if the student’s answer does not deserve credit, then no marks should be given. Occasionall ...
"Presidents and the Economy"
... while it rose by 1.1 percentage points, on average, during Republican terms--yielding a large and statistically significant D-R gap of -1.9 percentage points. Delving into the sectoral details (Table 3), the growth rates of every major component of real GDP except exports were higher under Democrat ...
... while it rose by 1.1 percentage points, on average, during Republican terms--yielding a large and statistically significant D-R gap of -1.9 percentage points. Delving into the sectoral details (Table 3), the growth rates of every major component of real GDP except exports were higher under Democrat ...
Gross Domestic Product
... The two ways of measuring gross domestic product are shown here. The expenditure approach is a practical way of calculating GDP. The income approach is generally more accurate. Gross Domestic Product Apply this example by using the expenditure approach and the income approach to explain how a new ho ...
... The two ways of measuring gross domestic product are shown here. The expenditure approach is a practical way of calculating GDP. The income approach is generally more accurate. Gross Domestic Product Apply this example by using the expenditure approach and the income approach to explain how a new ho ...
Fiscal Policy during the current Crisis
... Fiscal Policy during the current financial and economic crisis Economic growth is one of the main aims of macroeconomists and the government, as it allows a movement towards a better standard of living for the population. A recession is negative growth of GDP causing a downswing in the economies' bu ...
... Fiscal Policy during the current financial and economic crisis Economic growth is one of the main aims of macroeconomists and the government, as it allows a movement towards a better standard of living for the population. A recession is negative growth of GDP causing a downswing in the economies' bu ...
Asymmetric Effects of Uncertainty over the Business Cycle: A
... In the wake of the Great Depression, Keynes (1936) notes that business cycles are asymmetric and Fisher (1933) remarks that cycles may be milder depending on the state of the different macrovariables. The past Global Financial Crisis suggests equivalent conclusions. It provides firm evidence for str ...
... In the wake of the Great Depression, Keynes (1936) notes that business cycles are asymmetric and Fisher (1933) remarks that cycles may be milder depending on the state of the different macrovariables. The past Global Financial Crisis suggests equivalent conclusions. It provides firm evidence for str ...
Output and Inflation
... • We mentioned earlier that nominal variables are in terms of currency (i.e., your income is $50,000/yr) while real variables are in terms of goods (i.e., if the price of oranges is $2/orange, then your real income is 25,000 oranges per year) • To calculate real variables, we divide the correspondin ...
... • We mentioned earlier that nominal variables are in terms of currency (i.e., your income is $50,000/yr) while real variables are in terms of goods (i.e., if the price of oranges is $2/orange, then your real income is 25,000 oranges per year) • To calculate real variables, we divide the correspondin ...
LCCARL252_en.pdf
... The new world economy to emerge after the Great Recession will have at least two distinctive new features. First, slower world economic growth, associated with less dynamic private consumption spending in the United States of America due to lower real estate prices, excessive household debt and lowe ...
... The new world economy to emerge after the Great Recession will have at least two distinctive new features. First, slower world economic growth, associated with less dynamic private consumption spending in the United States of America due to lower real estate prices, excessive household debt and lowe ...
DP2006/01 Phillips curve forecasting in a small open economy Troy Matheson March 2006
... preferable, leaving it an empirical question as to which method should be used in practice.1 This paper adds to previous empirical work by considering a sectoral approach to forecasting inflation with the Phillips curve. We examine the forecasting performance of an aggregate open economy Phillips cu ...
... preferable, leaving it an empirical question as to which method should be used in practice.1 This paper adds to previous empirical work by considering a sectoral approach to forecasting inflation with the Phillips curve. We examine the forecasting performance of an aggregate open economy Phillips cu ...
Economics for Today 2nd edition Irvin B. Tucker
... a. both the price level and real GDP. b. only real GDP. c. only the price level. d. real GDP and the price level. C. Along the vertical range of the aggregate supply curve, the economy is at full employment and only the price ...
... a. both the price level and real GDP. b. only real GDP. c. only the price level. d. real GDP and the price level. C. Along the vertical range of the aggregate supply curve, the economy is at full employment and only the price ...
NBER WORKING PAPER SERIES CAN SEVERE FISCAL CONTRACTIONS BE EXPANSIONARY?
... In most European countries, the high real interest rates of the early 1980s combined with the large stock of public debt inherited from the 1970s to create a potentially explosive debt problem. As governments started to tackle the problem with contractionary fiscal policies, public officials and eco ...
... In most European countries, the high real interest rates of the early 1980s combined with the large stock of public debt inherited from the 1970s to create a potentially explosive debt problem. As governments started to tackle the problem with contractionary fiscal policies, public officials and eco ...
Rhetoric and Reality: Evaluating Canada`s
... Considering the overall average ranking of each Prime Minister (across all 16 indicators), the Harper government ranks last among the nine postwar governments, and by a wide margin – falling well behind the second-worst government, which was the Mulroney Conservative regime of 1984-93. The very poor ...
... Considering the overall average ranking of each Prime Minister (across all 16 indicators), the Harper government ranks last among the nine postwar governments, and by a wide margin – falling well behind the second-worst government, which was the Mulroney Conservative regime of 1984-93. The very poor ...
Economic Fluctuations, Unemployment, and Inflation
... measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, making them difficult to predict. ...
... measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, making them difficult to predict. ...
Aggregate Demand and Aggregate Supply
... Periods of business contraction are not isolated events. Table 10-1 shows the peaks and troughs in American economic activity from 1854. These cycles are both mild and severe. From 1929 to 1933, real GDP in the United States fell by 30 percent, prices fell almost as much, and nominal GDP fell from ...
... Periods of business contraction are not isolated events. Table 10-1 shows the peaks and troughs in American economic activity from 1854. These cycles are both mild and severe. From 1929 to 1933, real GDP in the United States fell by 30 percent, prices fell almost as much, and nominal GDP fell from ...
DISCRETIONARY POLICY INTERACTIONS AND THE
... conclusions are also similar, making the case for Keynesian results. The short term impact of fiscal policy is expansionary and larger than one; as was the case for the US, this result passes through positive effects on private consumption. An increase in tax receipts, on the other hand, has weak ef ...
... conclusions are also similar, making the case for Keynesian results. The short term impact of fiscal policy is expansionary and larger than one; as was the case for the US, this result passes through positive effects on private consumption. An increase in tax receipts, on the other hand, has weak ef ...
GDP per capita since 1820 - Utrecht University Repository
... compute a comparative GDP level for all countries in that year. From this benchmark year, the original GDP per capita series for all countries are extrapolated (backward and forward) using volume growth rates of GDP for the countries included in the set. The key characteristic of the constant price ...
... compute a comparative GDP level for all countries in that year. From this benchmark year, the original GDP per capita series for all countries are extrapolated (backward and forward) using volume growth rates of GDP for the countries included in the set. The key characteristic of the constant price ...
13.1 aggregate supply
... a large injection of spending by the U.S. government, but this move was not enough to stop aggregate demand from decreasing. ...
... a large injection of spending by the U.S. government, but this move was not enough to stop aggregate demand from decreasing. ...
![Ch 8 Basic Macro Relationships [Building AE 1] [AP]](http://s1.studyres.com/store/data/008217109_1-2db3ccec916917dc25d98b9756691d43-300x300.png)
Ch 8 Basic Macro Relationships [Building AE 1] [AP]
... 1. Suppose that the following conditions describe the current U.S. economy. - The unemployment rate is 5% - Inflation is 2% - Real GDP is growing at the rate of 3% I. First assume that the federal government increases its spending and increases taxes so as to maintain a balanced budget. Using AD/AS ...
... 1. Suppose that the following conditions describe the current U.S. economy. - The unemployment rate is 5% - Inflation is 2% - Real GDP is growing at the rate of 3% I. First assume that the federal government increases its spending and increases taxes so as to maintain a balanced budget. Using AD/AS ...
chapter 2
... As noted, economic growth exists when a country’s economy gets bigger over time. It occurs when there is a rise in the total volume of goods and services produced by a nation between one year and the next. Economic growth means that there are more goods and services being produced and made available ...
... As noted, economic growth exists when a country’s economy gets bigger over time. It occurs when there is a rise in the total volume of goods and services produced by a nation between one year and the next. Economic growth means that there are more goods and services being produced and made available ...
If the total surplus in a market with no government
... Short Title: Opportunity Cost One of the most important concepts in all of economics is Opportunity Cost. Identify the statements that help define this concept. 1. Opportunity cost is the value of the best alternative forgone in making a choice.* 1. Opportunity cost is the price of something. It is ...
... Short Title: Opportunity Cost One of the most important concepts in all of economics is Opportunity Cost. Identify the statements that help define this concept. 1. Opportunity cost is the value of the best alternative forgone in making a choice.* 1. Opportunity cost is the price of something. It is ...