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... a. They increase both real prices and real output. b. They increase prices and decrease real output. c. They increase real output and decrease prices. d. None of the above ANSWER: b 29. If the expected inflation rate is 4 percent for next year, then a. a return of 4 percent will give a real return o ...
... a. They increase both real prices and real output. b. They increase prices and decrease real output. c. They increase real output and decrease prices. d. None of the above ANSWER: b 29. If the expected inflation rate is 4 percent for next year, then a. a return of 4 percent will give a real return o ...
Basic Definitions
... People without jobs who give up looking for work are known as discouraged workers. Participation rate © 2003 Prentice Hall Business Publishing ...
... People without jobs who give up looking for work are known as discouraged workers. Participation rate © 2003 Prentice Hall Business Publishing ...
(a) Assume an economy is in internal balance but not external balan
... On the other hand, an increase in the nominal exchange rate (increasing the real exchange rate, which increases the production of tradeables and reduces spending on tradeables) sufficient to restore external balance would generate an excess demand for non-tradeables, and therefore inflation. Assume ...
... On the other hand, an increase in the nominal exchange rate (increasing the real exchange rate, which increases the production of tradeables and reduces spending on tradeables) sufficient to restore external balance would generate an excess demand for non-tradeables, and therefore inflation. Assume ...
fiscal policy - Dictionnaire encyclopédique de l`administration publique
... investment projects and thus hampering growth. Once again, however, the negative impact of fiscal stimulus on private investment is significantly offset when credit tightening is widespread and interest rates are very low. ...
... investment projects and thus hampering growth. Once again, however, the negative impact of fiscal stimulus on private investment is significantly offset when credit tightening is widespread and interest rates are very low. ...
3. Aggregate Supply and Aggregate Demand. Internal Balance
... nominal, rather than real terms. In other words, the face value (nominal value) of money is mistaken for its purchasing power (real value). Imperfect information might cause the coordination failure that occurs when a group of firms could achieve a more desirable equilibrium but fail to because they ...
... nominal, rather than real terms. In other words, the face value (nominal value) of money is mistaken for its purchasing power (real value). Imperfect information might cause the coordination failure that occurs when a group of firms could achieve a more desirable equilibrium but fail to because they ...
Exam 1 - Brian C Jenkins
... 33. A financial institution through which savers can lend funds directly to borrowers is called a financial: (a) intermediary. (b) system. (c) financial planner. (d) market. ...
... 33. A financial institution through which savers can lend funds directly to borrowers is called a financial: (a) intermediary. (b) system. (c) financial planner. (d) market. ...
In this presentation
... Secular Stagnation Mark II • 80 years later, along comes Larry: – “a decline in the full-employment real interest rate (FERIR) coupled with low inflation could indefinitely prevent the attainment of full employment…” • This is after the financial crisis, which, of course, is no longer an issue: – “ ...
... Secular Stagnation Mark II • 80 years later, along comes Larry: – “a decline in the full-employment real interest rate (FERIR) coupled with low inflation could indefinitely prevent the attainment of full employment…” • This is after the financial crisis, which, of course, is no longer an issue: – “ ...
0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 2014Q3 2014Q4
... Among most of the Major Seven economies GDP growth accelerated but with quite heterogeneous contributions of the various expenditure categories. GDP grew strongly in Canada (0.9%, compared to minus 0.3% in the previous quarter), mainly as a result of a marked increase in the contribution of the tra ...
... Among most of the Major Seven economies GDP growth accelerated but with quite heterogeneous contributions of the various expenditure categories. GDP grew strongly in Canada (0.9%, compared to minus 0.3% in the previous quarter), mainly as a result of a marked increase in the contribution of the tra ...
The outlook for Canada is slightly better for 2016 after a
... geopolitical risks could also disrupt the global economy. In the United States, consumer caution, negative impacts of the drop in oil sector investment and the strong U.S. dollar could continue to be a drag on growth. Canada’s economic troubles could intensify and last longer if oil prices fall agai ...
... geopolitical risks could also disrupt the global economy. In the United States, consumer caution, negative impacts of the drop in oil sector investment and the strong U.S. dollar could continue to be a drag on growth. Canada’s economic troubles could intensify and last longer if oil prices fall agai ...
Macro 2 Summary
... • The field of macroeconomics was born during the Great Depression. • Government didn’t understand how to fix a depressed economy with 25% unemployment. • Macro was created to: 1. Measure the health of the whole economy. 2. Guide government policies to fix problems. ...
... • The field of macroeconomics was born during the Great Depression. • Government didn’t understand how to fix a depressed economy with 25% unemployment. • Macro was created to: 1. Measure the health of the whole economy. 2. Guide government policies to fix problems. ...
Beyond the liquidity trap: ineffectiveness of monetary policy as an
... micro-optimization) would always be consistent with macro-equilibrium if they were dependent on endogenous interest rate that should match savings and investment. Any autonomous shift of the savings function would lead to a change of the interest rate consistent with macro-equilibrium. In such a cas ...
... micro-optimization) would always be consistent with macro-equilibrium if they were dependent on endogenous interest rate that should match savings and investment. Any autonomous shift of the savings function would lead to a change of the interest rate consistent with macro-equilibrium. In such a cas ...
Lecture 2-3: Measuring Macroeconomic
... Definition: Gross Domestic Product (GDP) is the market value of all _____ goods and services produced within a country in its own currency and in a given period of time. ...
... Definition: Gross Domestic Product (GDP) is the market value of all _____ goods and services produced within a country in its own currency and in a given period of time. ...
lecture notes - Livingston Public Schools
... A. Nominal GDP is the market value of all final goods and services produced in a year. 1. GDP is a (P x Q) figure including every item produced in the economy. Money is the common denominator that allows us to sum the total output. 2. To measure changes in the quantity of output, we need a yardstick ...
... A. Nominal GDP is the market value of all final goods and services produced in a year. 1. GDP is a (P x Q) figure including every item produced in the economy. Money is the common denominator that allows us to sum the total output. 2. To measure changes in the quantity of output, we need a yardstick ...
AP-Macro-Unit-2-Summary
... • The field of macroeconomics was born during the Great Depression. • Government didn’t understand how to fix a depressed economy with 25% unemployment. • Macro was created to: 1. Measure the health of the whole economy. 2. Guide government policies to fix problems. ...
... • The field of macroeconomics was born during the Great Depression. • Government didn’t understand how to fix a depressed economy with 25% unemployment. • Macro was created to: 1. Measure the health of the whole economy. 2. Guide government policies to fix problems. ...
The Government Spending Multiplier: Evidence from County Level
... Because of the detailed information provided by recovery.gov, it is possible to isolate the impact of government spending on the local economy. The spending associated with ARRA represents a relatively unique circumstance in that the expenditure occurred at a time during which the economy was in a s ...
... Because of the detailed information provided by recovery.gov, it is possible to isolate the impact of government spending on the local economy. The spending associated with ARRA represents a relatively unique circumstance in that the expenditure occurred at a time during which the economy was in a s ...
The profit cycle and economic recession
... followed by a recovery (in the credit boom) up to 2005-6. On my Marxist measure, the peak of 1997 was not surpassed in 2005-6. After that, profitability fell back to reach a new trough in 2009 during the depth of the Great Recession. Since mid-2009, there has been another recovery in profitability a ...
... followed by a recovery (in the credit boom) up to 2005-6. On my Marxist measure, the peak of 1997 was not surpassed in 2005-6. After that, profitability fell back to reach a new trough in 2009 during the depth of the Great Recession. Since mid-2009, there has been another recovery in profitability a ...
Has durable goods spending become less sensitive to interest rates?
... that prevailed during typical recoveries in the past, declining real interest rates in the current recovery could have provided a stronger boost to durable goods spending. This spending, in turn, could have contributed more strongly to real GDP growth a few years into the recovery, when interest rat ...
... that prevailed during typical recoveries in the past, declining real interest rates in the current recovery could have provided a stronger boost to durable goods spending. This spending, in turn, could have contributed more strongly to real GDP growth a few years into the recovery, when interest rat ...
Effects of Excess Labour Supply and Demand on Australian Wages
... • Actual real GDP, relative to attainable real GDP • Growth of business debt finance • Male part-time unemployment rate ...
... • Actual real GDP, relative to attainable real GDP • Growth of business debt finance • Male part-time unemployment rate ...
Problems in Measuring Economic Development
... cars, it obviously increases its GDP figure by a large number but the large number of cars can add to the pollution and make the air dirty. Dirty and polluted air is an excellent example of “bad-side effect” of higher production. Similarly higher chemical production can make the firm dump the residu ...
... cars, it obviously increases its GDP figure by a large number but the large number of cars can add to the pollution and make the air dirty. Dirty and polluted air is an excellent example of “bad-side effect” of higher production. Similarly higher chemical production can make the firm dump the residu ...
UK BUSINESS CONFIDENCE MONITOR REPORT Q1 2010 INSPIRING CONFIDENCE icaew.com/bcm
... running below capacity. This means businesses will be able to increase output and take advantage of the fragile economic recovery without taking on new staff. The spare capacity in the economy will also reduce long-term inflationary pressures, supporting the Bank of England’s decision to keep moneta ...
... running below capacity. This means businesses will be able to increase output and take advantage of the fragile economic recovery without taking on new staff. The spare capacity in the economy will also reduce long-term inflationary pressures, supporting the Bank of England’s decision to keep moneta ...
Basic Definitions and Accounting
... same in the base year (which we are taking as year t). This also means that we are normalizing the price level to be one in the base year (what you usually see presented in national accounts is the price level multiplied by 100). Second, there is an identity here that nominal GDP divided by the pri ...
... same in the base year (which we are taking as year t). This also means that we are normalizing the price level to be one in the base year (what you usually see presented in national accounts is the price level multiplied by 100). Second, there is an identity here that nominal GDP divided by the pri ...
Chapter 23
... classical view of the world is broadly correct, but in addition to fluctuations that arise from the normal functioning of an expanding economy, fluctuations in the quantity of money also generate the business cycle. A slowdown in the growth rate of money brings recession and a large decrease in the ...
... classical view of the world is broadly correct, but in addition to fluctuations that arise from the normal functioning of an expanding economy, fluctuations in the quantity of money also generate the business cycle. A slowdown in the growth rate of money brings recession and a large decrease in the ...
An Application of the Stock and Watson Methodology
... P ( s t = j | s t −1 = i, s t − 2 = k ,...) = P ( s t = j | s t −1 = i ) = p ij , for i, j ∈{0, 1} . ...
... P ( s t = j | s t −1 = i, s t − 2 = k ,...) = P ( s t = j | s t −1 = i ) = p ij , for i, j ∈{0, 1} . ...