NBER WORKING PAPER SERIES AND BUDGET DEFICITS, TAX
... It might be argued that the residuals in 1983, although negative, are smaller absolutely than the residuals of 1982, suggesting that "something" had made nominal GNP grow more rapidly in 1983 than would have been predicted on the basis of lagged money alone. There is no way to test this view that th ...
... It might be argued that the residuals in 1983, although negative, are smaller absolutely than the residuals of 1982, suggesting that "something" had made nominal GNP grow more rapidly in 1983 than would have been predicted on the basis of lagged money alone. There is no way to test this view that th ...
lesson 6
... thereby increasing output. (B) In the short run, what happens to the price level? Explain why. The price level increases because the increase in demand can only be met if firms have the incentive to produce more. An increasing price level provides this incentive. (C) In the short run, what happens t ...
... thereby increasing output. (B) In the short run, what happens to the price level? Explain why. The price level increases because the increase in demand can only be met if firms have the incentive to produce more. An increasing price level provides this incentive. (C) In the short run, what happens t ...
IMPACT OF INTEREST RATE AND INFLATION ON GDP IN
... economic growth and bigger living standards. The country is not part of the EU, but economy is associated to European countries which are the biggest source of investment and trade partners. Although the economy was stroked from the economic crisis in the euro zone, it maintained macroeconomic stabi ...
... economic growth and bigger living standards. The country is not part of the EU, but economy is associated to European countries which are the biggest source of investment and trade partners. Although the economy was stroked from the economic crisis in the euro zone, it maintained macroeconomic stabi ...
Economics, by R. Glenn Hubbard and Anthony Patrick O`Brien
... increasing. Recession The period of a business cycle during which total production and total employment are decreasing. Economic growth The ability of an economy to produce increasing quantities of goods and services. Inflation rate The percentage increase in the price level from one year to the nex ...
... increasing. Recession The period of a business cycle during which total production and total employment are decreasing. Economic growth The ability of an economy to produce increasing quantities of goods and services. Inflation rate The percentage increase in the price level from one year to the nex ...
19.3 aggregate demand
... An increase in expected future income increases the amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services now before their prices rise. A ...
... An increase in expected future income increases the amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services now before their prices rise. A ...
Global Economic Outlook: Interest Rates, Bond Yields, and Currencies
... Source: Robert Shiller, Yale University, Morgan Stanley Economic Research Global Investment Research – July 2001 Please refer to important disclosures at the end of this report. ...
... Source: Robert Shiller, Yale University, Morgan Stanley Economic Research Global Investment Research – July 2001 Please refer to important disclosures at the end of this report. ...
4A FIRST LOOK AT MACROECONOMICS
... C) the value of total production of all the nation’s farms, factories, shops and offices measured in the prices of a single year. D) the value of total production of all the nation’s farms, factories, shops and offices measured at the prices of the year it was produced. Answer: C Topic: Real GDP Ski ...
... C) the value of total production of all the nation’s farms, factories, shops and offices measured in the prices of a single year. D) the value of total production of all the nation’s farms, factories, shops and offices measured at the prices of the year it was produced. Answer: C Topic: Real GDP Ski ...
Booms and banking crises - Bank for International Settlements
... in the sample, 41 are associated with a banking crisis, which corresponds to an average probability of a financial recession of 2.36%. Hence, financial recessions are rare events; by comparison, the probability of other recessions is 8.93% (see Table 1). Fact #2: Financial recessions are deeper and ...
... in the sample, 41 are associated with a banking crisis, which corresponds to an average probability of a financial recession of 2.36%. Hence, financial recessions are rare events; by comparison, the probability of other recessions is 8.93% (see Table 1). Fact #2: Financial recessions are deeper and ...
THE EFFECT OF INTEREST RATE, INFLATION RATE, GDP, ON
... recommended that Central Bank of Jordan should pay attention to the inflation phenomenon while conducting new monetary policies. Engen and Hubbard ( 2004): Researchers have determined that an increase in federal government debt equivalent to one percent of GDP, all else equal, would be expected to i ...
... recommended that Central Bank of Jordan should pay attention to the inflation phenomenon while conducting new monetary policies. Engen and Hubbard ( 2004): Researchers have determined that an increase in federal government debt equivalent to one percent of GDP, all else equal, would be expected to i ...
- TestbankU
... 14) Explain why the Phillips curve on average is downward sloping. Answer: When unemployment becomes very low, the economy is likely to overheat and this will lead to upward pressure on inflation. 15) Explain why economists care about unemployment. Answer: First, they care about unemployment becaus ...
... 14) Explain why the Phillips curve on average is downward sloping. Answer: When unemployment becomes very low, the economy is likely to overheat and this will lead to upward pressure on inflation. 15) Explain why economists care about unemployment. Answer: First, they care about unemployment becaus ...
Marco Casiraghi and Giuseppe Ferrero
... inflation gap. On the other hand, sticky wages may help stabilize output in response to temporary shocks by sustaining the real income and thus the consumption of workers in the short term. This mechanism is known as the “paradox of flexibility”. 6 In the aftermath of a large deleveraging shock, whi ...
... inflation gap. On the other hand, sticky wages may help stabilize output in response to temporary shocks by sustaining the real income and thus the consumption of workers in the short term. This mechanism is known as the “paradox of flexibility”. 6 In the aftermath of a large deleveraging shock, whi ...
Computing Cyclically Adjusted Balances and Automatic
... Suppose a country does not collect tax revenue.1 By definition, with zero elasticity of spending, there should be no automatic stabilizers. However, the application of (13a) would produce nonzero automatic stabilizers. In particular, under the same growth dynamic as in Example 1, the output gap wide ...
... Suppose a country does not collect tax revenue.1 By definition, with zero elasticity of spending, there should be no automatic stabilizers. However, the application of (13a) would produce nonzero automatic stabilizers. In particular, under the same growth dynamic as in Example 1, the output gap wide ...
Inflation targeting vs. nominal GDP targeting
... that the best would be to have always zero inflation, i.e. no changes in general price level. This can call for a target level for inflation of 0%. We will see that it is not as easy as it seems to be. There are several reasons to set the target above zero. First, policy makers are not omnipotent peop ...
... that the best would be to have always zero inflation, i.e. no changes in general price level. This can call for a target level for inflation of 0%. We will see that it is not as easy as it seems to be. There are several reasons to set the target above zero. First, policy makers are not omnipotent peop ...
inflation rate
... sticky prices and forward-looking behavior framework Gali et al. (1999) consider a continuous environment of monopolistically competitive firms Let 1-θ be a random fraction of firms that are going to adjust their price in any given period A fraction ω use a backward looking rule of thumb to se ...
... sticky prices and forward-looking behavior framework Gali et al. (1999) consider a continuous environment of monopolistically competitive firms Let 1-θ be a random fraction of firms that are going to adjust their price in any given period A fraction ω use a backward looking rule of thumb to se ...
FREE Sample Here
... large underground economy. The underground economy is that part of the economy not measured in official statistics. After taking into account those individuals who are "employed" in the underground economy, the unemployment rate in Spain would have been lower (but still relatively high). 7) What are ...
... large underground economy. The underground economy is that part of the economy not measured in official statistics. After taking into account those individuals who are "employed" in the underground economy, the unemployment rate in Spain would have been lower (but still relatively high). 7) What are ...
Forecasting Real GDP
... L = Labor A = Technology, Institutions In the long run, increasing supply requires increasing A (through structural policies) ...
... L = Labor A = Technology, Institutions In the long run, increasing supply requires increasing A (through structural policies) ...
Economic growth and unemployment rate. Case of Albania
... population. Actually in Albania the unemployment is 13.5 percent which is relatively high but decreased related with the 2013 year when unemployment rate was 16.9 percent. Still this rate for the females is higher than males but the number of employed females is increasing day by day in Albania. You ...
... population. Actually in Albania the unemployment is 13.5 percent which is relatively high but decreased related with the 2013 year when unemployment rate was 16.9 percent. Still this rate for the females is higher than males but the number of employed females is increasing day by day in Albania. You ...
Chapter 7
... Results from business recessions that occur when aggregate (total) demand is insufficient to create full employment ...
... Results from business recessions that occur when aggregate (total) demand is insufficient to create full employment ...
Two decades ago, many people thought that the lesson of the
... model quickly lost its luster in the 1990’s, however, when the stock market and real estate market crashed, followed by many years of severe stagnation in the real economy.1 A decade ago, many thought that the lesson of the 1990’s had been that the United States’ variant of capitalism was the best m ...
... model quickly lost its luster in the 1990’s, however, when the stock market and real estate market crashed, followed by many years of severe stagnation in the real economy.1 A decade ago, many thought that the lesson of the 1990’s had been that the United States’ variant of capitalism was the best m ...
Document
... Simple Spending Multiplier If we continue to assume that the price level remains unchanged, we can trace the effects of changes in planned spending on aggregate output demanded The key point is that like a stone thrown into a still pond, the effect of any shift in planned spending ripples through t ...
... Simple Spending Multiplier If we continue to assume that the price level remains unchanged, we can trace the effects of changes in planned spending on aggregate output demanded The key point is that like a stone thrown into a still pond, the effect of any shift in planned spending ripples through t ...
UNIT 3 - Gross Domestic Product
... Nominal and Real GDP Year X nominal GDP uses year X prices times year X quantities. Year X real GDP uses a base year’s prices times year X quantities. When comparing real GDP between various years, only the quantity changes. ...
... Nominal and Real GDP Year X nominal GDP uses year X prices times year X quantities. Year X real GDP uses a base year’s prices times year X quantities. When comparing real GDP between various years, only the quantity changes. ...
The Effects of Fiscal Policy on Consumption in Good and Bad Times
... the response of consumption following fiscal shocks has been found to be both positive or negative, but generally small. Key questions in the recent literature have been whether fiscal policy is more effective in periods of slack, and whether weak fiscal health can reduce this effectiveness. The goa ...
... the response of consumption following fiscal shocks has been found to be both positive or negative, but generally small. Key questions in the recent literature have been whether fiscal policy is more effective in periods of slack, and whether weak fiscal health can reduce this effectiveness. The goa ...
ch05
... attempt is made to account for it in GDP. 4b.3 The underground economy is estimated to be about 10 percent of GDP in the United States and even larger in other countries. Because it is believed to be fairly constant over time, its consequences for growth are probably minor. 4b.4 As products improve, ...
... attempt is made to account for it in GDP. 4b.3 The underground economy is estimated to be about 10 percent of GDP in the United States and even larger in other countries. Because it is believed to be fairly constant over time, its consequences for growth are probably minor. 4b.4 As products improve, ...
Chapter Summary
... policies are mostly anticipated by the public, and therefore have less effect than unexpected policies. The passive approach suggests that the government should follow clear and predictable policies and avoid discretionary intervention to stimulate or dampen aggregate demand over the business cycle. ...
... policies are mostly anticipated by the public, and therefore have less effect than unexpected policies. The passive approach suggests that the government should follow clear and predictable policies and avoid discretionary intervention to stimulate or dampen aggregate demand over the business cycle. ...
CHAPTER 12
... However, the development of new technology can also encourage consumers and businesses to buy new products, so it can boost aggregate demand somewhat as well in the short run. ...
... However, the development of new technology can also encourage consumers and businesses to buy new products, so it can boost aggregate demand somewhat as well in the short run. ...