GDP
... purchased by the average person would cost in the US. Better measure of living standards. ...
... purchased by the average person would cost in the US. Better measure of living standards. ...
Real Business Cycles: A New Keynesian Perspective
... in real business cycle models. For example, changes in the level of government purchases or in the investment tax credit alter the demand for goods and therefore affect the Walrasian equilibrium. Changes in the relative price of oil alter the equilibrium allocation of labor among alternative uses. M ...
... in real business cycle models. For example, changes in the level of government purchases or in the investment tax credit alter the demand for goods and therefore affect the Walrasian equilibrium. Changes in the relative price of oil alter the equilibrium allocation of labor among alternative uses. M ...
National Income and Price Determination
... factory produces 24/7. The full capacity is 100,000 units. Currently, Microsoft only has enough customers to produce only 50% (50,000) of full capacity. Firm does not increase investment. S It can simply expand production. ...
... factory produces 24/7. The full capacity is 100,000 units. Currently, Microsoft only has enough customers to produce only 50% (50,000) of full capacity. Firm does not increase investment. S It can simply expand production. ...
slides
... short-term rate of interest cannot fall any lower than zero, whereas a negative nominal short-term rate would be needed to achieve full employment. This is no different from Patinkin ...
... short-term rate of interest cannot fall any lower than zero, whereas a negative nominal short-term rate would be needed to achieve full employment. This is no different from Patinkin ...
ECON112 (Spring 2011)
... (f) Suppose the government increases taxes and government expenditure by 100 at the same time. Solve for the new equilibrium. Y = 160 + 0.6 (Y – 100-100) + 150 +250 Y*** = 1100 Alternatively, Y = 100 [1/(1 – MPC) – C1 /(1– MPC)] = 100 Y*** = Y* + Y = 1100 ...
... (f) Suppose the government increases taxes and government expenditure by 100 at the same time. Solve for the new equilibrium. Y = 160 + 0.6 (Y – 100-100) + 150 +250 Y*** = 1100 Alternatively, Y = 100 [1/(1 – MPC) – C1 /(1– MPC)] = 100 Y*** = Y* + Y = 1100 ...
Macroeconomics: Events and Ideas
... Panel (a) shows the classical view: the short-run aggregate supply curve is vertical. The decline in aggregate demand leads to a fall in the aggregate price level, from P1 to P2, but no change in aggregate output. Panel (b) shows the Keynesian view: the short-run aggregate supply curve slopes upward ...
... Panel (a) shows the classical view: the short-run aggregate supply curve is vertical. The decline in aggregate demand leads to a fall in the aggregate price level, from P1 to P2, but no change in aggregate output. Panel (b) shows the Keynesian view: the short-run aggregate supply curve slopes upward ...
ECON 102 Tutorial: Week 14
... per capita to compare living standards across different countries, or we can use GDP over total number of workers employed to compare average labour productivity across different countries. But, if we want to use GDP to compare one year to another year, then we have to consider the fact that money i ...
... per capita to compare living standards across different countries, or we can use GDP over total number of workers employed to compare average labour productivity across different countries. But, if we want to use GDP to compare one year to another year, then we have to consider the fact that money i ...
Document
... In the real world, due to automatic stabilizers, spending shocks have much weaker impacts on the economy than our simple multiplier formulas would suggest. ...
... In the real world, due to automatic stabilizers, spending shocks have much weaker impacts on the economy than our simple multiplier formulas would suggest. ...
PDF Download
... Summers (2014). According to the supply-side secular stagnation hypothesis (Gordon 2015), following the recent financial crisis the failure of output and employment to return to their trend levels relatively quickly may relate to a fundamental decline in the rate of productivity growth. Both models ...
... Summers (2014). According to the supply-side secular stagnation hypothesis (Gordon 2015), following the recent financial crisis the failure of output and employment to return to their trend levels relatively quickly may relate to a fundamental decline in the rate of productivity growth. Both models ...
Notes 11: Examples of Fiscal Policy
... Note: We could relax any of these assumptions if we so desired, but it would make the analysis more complex. The above situation is not too far from what we observed in 1990. Consumer confidence fell (as measured by official government statistics). Why did consumer confidence fall in 1990? There are ...
... Note: We could relax any of these assumptions if we so desired, but it would make the analysis more complex. The above situation is not too far from what we observed in 1990. Consumer confidence fell (as measured by official government statistics). Why did consumer confidence fall in 1990? There are ...
1 GCC, ECN 211, Sample Final Exam Questions
... shift up by the full amount of the tax decrease cause both the C line and the AEP line to shift down by the full amount of the tax decrease cause both the C line and the AEP line to shift down by an amount equal to the marginal propensity to consume times the tax decrease cause both the C line and t ...
... shift up by the full amount of the tax decrease cause both the C line and the AEP line to shift down by the full amount of the tax decrease cause both the C line and the AEP line to shift down by an amount equal to the marginal propensity to consume times the tax decrease cause both the C line and t ...
Document
... The legislative process can take months or years. THE INFLUENCE OF MONETARY AND FISCAL POLICY ...
... The legislative process can take months or years. THE INFLUENCE OF MONETARY AND FISCAL POLICY ...
17 Unemployment - Mr. Davidson`s IB Economics Page
... Reduce labour market regulations which increase labour market flexibility E.g. regulations about hiring and firing – if it is difficult for a firm to get rid of labourers that do not work well they will not take on people ...
... Reduce labour market regulations which increase labour market flexibility E.g. regulations about hiring and firing – if it is difficult for a firm to get rid of labourers that do not work well they will not take on people ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... have the same effects. But if they do not—and surely this is not a crazy hypothesis—then both the EVAR and the Blanchard-Perotti SVAR are misspecified: instead of total government spending, one should have both defense and civilian government spending in the EVARs and the SVARs. Now the “source” of t ...
... have the same effects. But if they do not—and surely this is not a crazy hypothesis—then both the EVAR and the Blanchard-Perotti SVAR are misspecified: instead of total government spending, one should have both defense and civilian government spending in the EVARs and the SVARs. Now the “source” of t ...
Ch24
... Classical – during expansion (at/near full employment) Keynesian – during recessions When spending is cut and the demand for most goods, services, and labor all decrease, prices and wage rates don’t fall but the quantity of goods and services sold and the quantity of labor employed do fall and the e ...
... Classical – during expansion (at/near full employment) Keynesian – during recessions When spending is cut and the demand for most goods, services, and labor all decrease, prices and wage rates don’t fall but the quantity of goods and services sold and the quantity of labor employed do fall and the e ...
Is Slow Growth the New Normal for Canada?
... Today’s gloominess is the mirror image of the excessive optimism voiced by some economists before the recession. In his Presidential Address to the American Economic Association in 2003, Lucas said that the “central problem of depression prevention [has] been solved, for all practical purposes”.16 J ...
... Today’s gloominess is the mirror image of the excessive optimism voiced by some economists before the recession. In his Presidential Address to the American Economic Association in 2003, Lucas said that the “central problem of depression prevention [has] been solved, for all practical purposes”.16 J ...
Real Business Cycles: A New Keynesian Perspective
... cycle. I should admit in advance that I am not an advocate. In my view, real business cycle theory does not provide an empirically plausible explanation of economic fluctuations. Both its reliance on large technological disturbances as the primary source of economic fluctuations and its reliance on ...
... cycle. I should admit in advance that I am not an advocate. In my view, real business cycle theory does not provide an empirically plausible explanation of economic fluctuations. Both its reliance on large technological disturbances as the primary source of economic fluctuations and its reliance on ...
Macroeconomics - Iowa State University Department of Economics
... The GDP deflator and the CPI give somewhat different information about what’s happening to the overall level of prices in the economy. The first difference is that the GDP deflator measures the prices of all goods and services produced, whereas the CPI measures the prices of only the goods and servi ...
... The GDP deflator and the CPI give somewhat different information about what’s happening to the overall level of prices in the economy. The first difference is that the GDP deflator measures the prices of all goods and services produced, whereas the CPI measures the prices of only the goods and servi ...
CHAPTER OVERVIEW
... Measuring the Economy’s Output 3. Changes in business inventory is an entry that represents the difference between what has been produced and what is sold. Although this entry is very small compared to total GDP, it is one of the most important indicators of future business activity. It has an impo ...
... Measuring the Economy’s Output 3. Changes in business inventory is an entry that represents the difference between what has been produced and what is sold. Although this entry is very small compared to total GDP, it is one of the most important indicators of future business activity. It has an impo ...
Refer to the above table. Between years 1 and 2, real GDP
... 10. Given the annual rate of economic growth, the "rule of 70" allows one to: A) determine the accompanying rate of inflation. B) calculate the size of the GDP gap. C) calculate the number of years required for real GDP to double. D) determine the growth rate of per capita GDP. Answer: C 11. Recurri ...
... 10. Given the annual rate of economic growth, the "rule of 70" allows one to: A) determine the accompanying rate of inflation. B) calculate the size of the GDP gap. C) calculate the number of years required for real GDP to double. D) determine the growth rate of per capita GDP. Answer: C 11. Recurri ...
ch19, lecture
... To eliminate a negative GDP gap, the Keynesian solution is to decrease autonomous spending by an amount equal to the inflationary gap and operate through the multiplier to decrease equilibrium output and income . ...
... To eliminate a negative GDP gap, the Keynesian solution is to decrease autonomous spending by an amount equal to the inflationary gap and operate through the multiplier to decrease equilibrium output and income . ...
File - RAJ KUMAR
... An aggregate expenditure function • The aggregate expenditure function relates total desired expenditure to national income. • Here desired expenditure is the sum of desired consumption and desired investment. • It is assumed that desired investment is £250 million while consumption is £100 million ...
... An aggregate expenditure function • The aggregate expenditure function relates total desired expenditure to national income. • Here desired expenditure is the sum of desired consumption and desired investment. • It is assumed that desired investment is £250 million while consumption is £100 million ...
Another economic miracle? The German labor market and the Great
... United Kingdom, or the United States, the development of employment and unemployment was much more positive in Germany than in these countries. Japan has shown a somewhat similar experience: its output decline has even been more dramatic, but the labor market response was somewhat more negative than ...
... United Kingdom, or the United States, the development of employment and unemployment was much more positive in Germany than in these countries. Japan has shown a somewhat similar experience: its output decline has even been more dramatic, but the labor market response was somewhat more negative than ...
Document
... proceeds, rather than bolster the economy by spending them, since they would assume that it was temporary. • Optimists -ith unemployment high and private demand for loans low, there was little risk that the government would “crowd out” private activity. Indeed, with indebted households forced by fal ...
... proceeds, rather than bolster the economy by spending them, since they would assume that it was temporary. • Optimists -ith unemployment high and private demand for loans low, there was little risk that the government would “crowd out” private activity. Indeed, with indebted households forced by fal ...