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1 2 1 AB - KCSD Connect
1 2 1 AB - KCSD Connect

... sector of the economy. Some activities are kept underground because they are illegal—drug dealing, smuggling, gambling, and selling stolen goods, for example. When goods are rationed or otherwise restricted, illegal trading occurs on what is called the black market. Other underground activities are ...
Boosting Confidence: How Much Can Fiscal Policy Do
Boosting Confidence: How Much Can Fiscal Policy Do

... macroeconomy. We build on earlier work by Fuhrer (1993) on the determinants of consumer confidence, and on work by Carrol et. al (1994), Howrey (2001), Ludvigson (2004) and Easaw et al (2005) on the predictive content of consumer confidence, and assess the effects of different components of taxes a ...
Examples of VAR Studies
Examples of VAR Studies

... larger than those from traditional VARs. Another paper co-authored by Coibon provides a graph of the updated shock measures. See the next page. The shocks from the recent recession raise a few issues about this methodology. They show large negative shocks, meaning the Fed cut rates by more than woul ...
Why Has the Unemployment Rate Fared Better than GDP Growth?
Why Has the Unemployment Rate Fared Better than GDP Growth?

... I have developed the decomposition in terms of total factor productivity, a framework that is most closely affiliated with production theory, where the index of productivity is the Hicks-neutral index of technical change. Some discussions use the alternative framework of labor productivity, measured ...
Mankiw – Chapter 15
Mankiw – Chapter 15

... urban services seem to be working • But they have very low productivity, creating very little value added and therefore earn low levels of income • This is due to the lack of jobs with high productivity in the economy, itself due to the capital constraint ...
Why Has the Unemployment Rate Fared Better than GDP Growth?
Why Has the Unemployment Rate Fared Better than GDP Growth?

... I have developed the decomposition in terms of total factor productivity, a framework that is most closely affiliated with production theory, where the index of productivity is the Hicks-neutral index of technical change. Some discussions use the alternative framework of labor productivity, measured ...
Principles of Economics, Case and Fair,9e
Principles of Economics, Case and Fair,9e

... Expenditures by consumers on goods and services. durable goods Goods that last a relatively long time, such as cars and household appliances. nondurable goods Goods that are used up fairly quickly, such as food and clothing. services The things we buy that do not involve the production of physical t ...
Kiss Me Deadly: From Finnish Great Depression to Great Recession
Kiss Me Deadly: From Finnish Great Depression to Great Recession

... an industrialized economy after World War II. This “Finnish Great Depression” started at the beginning of 1990, after several years of rapid economic expansion and lasted for almost four years. The cumulated drop of real GDP from its peak in 4Q 1989 to trough in 1Q 1993 was 12.6 percent. The depress ...
Exercises for Chapter 23
Exercises for Chapter 23

... 15. If the GDP deflator is 200 and nominal GDP is $10,000 billion, then real GDP is a. $5,000 billion. b. $2,000 billion. c. $50 billion. d. None of the above are correct. ANSWER: a. $5,000 billion. 16. If a small country has current nominal GDP of $25 billion and the GDP deflator is 125, what is re ...
lecture notes
lecture notes

... 1. Most decisions concern a change in current conditions; therefore the economic perspective is largely focused on marginal analysis. 2. Each option considered weighs the marginal benefit against the marginal cost. 3. Whether the decision is personal or one made by business or government, the princi ...
DOES DEVALUATION LEAD TO ECONOMIC RECOVERY OR
DOES DEVALUATION LEAD TO ECONOMIC RECOVERY OR

... in the 1920s. In practice this swing has been achieved partly through massive real depreciation, partly though severe recession that produces a compression of imports (p.9). But how exactly might devaluation affect capital flows? The a priori reasoning is ambiguous. A quick answer is that where deva ...
A Review of Philippine Monetary Policy Towards An Alternative Monetary... Joseph Lim 3-D 12
A Review of Philippine Monetary Policy Towards An Alternative Monetary... Joseph Lim 3-D 12

... devaluation-cum-recession which improved the current account by improving the trade accounts. Fig. 7 tracks the current account and balance of payment balances. It can be seen in the graph that the balance of payments improvement from 1984 to 1987 following the 1984-85 collapse was mainly due to ver ...
Document
Document

... Suppose the economy is initially at equilibrium, in which total planned real expenditures equals real GDP. Which of the following will occur if there is an increase in autonomous investment? A. Inventories will increase immediately and production of goods and services will decrease until real GDP c ...
Document
Document

... either a reserve aggregate or the federal funds rate, depending on whether the economy is in an expansion or a recession. ...
Fiscal Policy in a Depressed Economy
Fiscal Policy in a Depressed Economy

... This paper returns to the long debated question of the efficacy of discretionary fiscal policy concluding that in severely depressed economies in which interest rates are constrained by the zero lower bound discretionary fiscal policy is a crucial instrument. The analysis suggests that under plausib ...
Topic 5 Money & Investment
Topic 5 Money & Investment

... 8. r falls , y falls 9. c may fall (could even rise-intuition?) 10. i falls ...
Chapter 13: Aggregate Supply and Aggregate Demand
Chapter 13: Aggregate Supply and Aggregate Demand

... forces push the economy back towards full employment. ...
Circular Flow Power point
Circular Flow Power point

... • GDP is divided among four components of expenditure: consumption, investment, government purchases, and net exports. ...
(GDP).
(GDP).

... • Why is GDP not a perfect or sufficient measure of the happiness or quality of life? Because 1. It is just an average number that does not reflect the inequalities in the distribution of income. 2. It is simply an indicator of purchasing power and as such does not necessarily capture a series of qu ...
Objectives for Chapter 24: Monetarism (Continued) Chapter 24: The
Objectives for Chapter 24: Monetarism (Continued) Chapter 24: The

... Notice that both of these are vertical. This is a very important conclusion. It tells us that in the long-run (when people are no longer fooled by inflation), there is no trade-off between inflation and unemployment. In the long-run, the economy will operate at Potential Real GDP (and at the natural ...
Chapter 8 Business Cycles
Chapter 8 Business Cycles

... Describe the major features of the business cycle. Be sure to discuss what variables are affected by the cycle, a description of the key features that are apparent in the data, how variables are related to one another, how regular the cycle is, and how predictable the cycle is. Answer: The business ...
Lecture 6 - University of Wyoming
Lecture 6 - University of Wyoming

... Such “expansionary” policies could decrease unemployment but also cause inflation. This is called the “unemploymentinflation tradeoff”. ...
Objectives for Chapter 24: Monetarism (Continued)
Objectives for Chapter 24: Monetarism (Continued)

... Notice that both of these are vertical. This is a very important conclusion. It tells us that in the long-run (when people are no longer fooled by inflation), there is no trade-off between inflation and unemployment. In the long-run, the economy will operate at Potential Real GDP (and at the natural ...
23 - ITU
23 - ITU

... • Why is GDP not a perfect or sufficient measure of the happiness or quality of life? Because 1. It is just an average number that does not reflect the inequalities in the distribution of income. 2. It is simply an indicator of purchasing power and as such does not necessarily capture a series of qu ...
Re-Targeting the Fed
Re-Targeting the Fed

... recent years is Japan, where the Consumer Price Index inflation rate has been at almost zero for more than a decade. Many economists believe ...
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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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