Lesson 9 - Fiscal Policy
... policy to have an impact on the economy. Under the best conditions, this lag is about six months long. As you can see, in the best-case scenario, fiscal policy takes at least 12 to 14 months before implementation and performance measures associated with the new policy can be observed in the actual e ...
... policy to have an impact on the economy. Under the best conditions, this lag is about six months long. As you can see, in the best-case scenario, fiscal policy takes at least 12 to 14 months before implementation and performance measures associated with the new policy can be observed in the actual e ...
Gross Domestic Product
... GDP per capita tells economists how much each person in the economy can produce, or the production capacity of the average worker Real GDP per capita is GDP adjusted for both inflation and population ...
... GDP per capita tells economists how much each person in the economy can produce, or the production capacity of the average worker Real GDP per capita is GDP adjusted for both inflation and population ...
Document
... those purchased for additional processing and resale Excluded to avoid the problem of double counting which is counting an item’s value ...
... those purchased for additional processing and resale Excluded to avoid the problem of double counting which is counting an item’s value ...
AP Macro Unit 2 Review Powerpoint
... • 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 stock market crash of 2008 caused the Great
... The S&P 500 Measured in Wage Units Unemployment Rate Fig. 4. Unemployment and the stock market. ...
... The S&P 500 Measured in Wage Units Unemployment Rate Fig. 4. Unemployment and the stock market. ...
International Trade and Equilibrium Output
... cost of American goods to foreigners and encourages exports from the US while discouraging the purchases of imports in the US ...
... cost of American goods to foreigners and encourages exports from the US while discouraging the purchases of imports in the US ...
Chapter 12 Government and Fiscal Policy
... Over a quarter of the American Recovery and Reinvestment Act (ARRA) was for a variety of temporary tax rebates and credits for individuals and firms. For example, each worker making less than $75,000 a year received $400 ($800 for a working couple earning up to $150,000) as a kind of rebate for payr ...
... Over a quarter of the American Recovery and Reinvestment Act (ARRA) was for a variety of temporary tax rebates and credits for individuals and firms. For example, each worker making less than $75,000 a year received $400 ($800 for a working couple earning up to $150,000) as a kind of rebate for payr ...
Economics 1012A: Introduction to Macroeconomics FALL 2007 Dr
... 21. In the mid 1990s Japan had the lowest unemployment and inflation rates of all major industrial countries. The Japanese economy also experienced a recession in the mid 1990s. Under these circumstances, it is likely that the Japanese economy A) was in the Classical range. B) was in the Keynesian r ...
... 21. In the mid 1990s Japan had the lowest unemployment and inflation rates of all major industrial countries. The Japanese economy also experienced a recession in the mid 1990s. Under these circumstances, it is likely that the Japanese economy A) was in the Classical range. B) was in the Keynesian r ...
Macro Lecture 2: Gross Domestic Product
... the P’s can cause a rise in nominal GDP, nominal GDP itself cannot tell us what is happening to the Q’s, the production of goods and services. For this reason, we shall now introduce a new concept, real GDP, which can only rise when the Q’s increase. Consequently, when real GDP increase we can concl ...
... the P’s can cause a rise in nominal GDP, nominal GDP itself cannot tell us what is happening to the Q’s, the production of goods and services. For this reason, we shall now introduce a new concept, real GDP, which can only rise when the Q’s increase. Consequently, when real GDP increase we can concl ...
Exam 3 with Answer Key attached
... a. do nothing because the economy must go into a recession to create a deflationary gap to reduce other costs of production b. do nothing because the price level seldom changes when the price of oil increases c. sell bonds in the open market d. encourage firms to not adjust the wages they pay e. buy ...
... a. do nothing because the economy must go into a recession to create a deflationary gap to reduce other costs of production b. do nothing because the price level seldom changes when the price of oil increases c. sell bonds in the open market d. encourage firms to not adjust the wages they pay e. buy ...
The improvement in the Competitive Position of the Greek Economy
... towards export-led growth. The CA deficit has declined significantly since the beginning of the crisis, and especially during the first half of 2012. In total, the external deficit is expected to fall below 5% of GDP in 2012 from about 15% of GDP in 2008. Most impressive is the change in the trade d ...
... towards export-led growth. The CA deficit has declined significantly since the beginning of the crisis, and especially during the first half of 2012. In total, the external deficit is expected to fall below 5% of GDP in 2012 from about 15% of GDP in 2008. Most impressive is the change in the trade d ...
Lecture 16
... A simple rule, is something like: Conduct open market operations so that M1 grows by five percent per year. Another way of stating this rule is: Adopt a long-term policy for the money supply. If it turns out that aggregate demand and aggregate supply are not in balance, wait for the normal adjustmen ...
... A simple rule, is something like: Conduct open market operations so that M1 grows by five percent per year. Another way of stating this rule is: Adopt a long-term policy for the money supply. If it turns out that aggregate demand and aggregate supply are not in balance, wait for the normal adjustmen ...
The Data of Macroeconomics
... • Gross Domestic Product (GDP) measures both total income and total expenditure on the economy’s output of goods & services. • Nominal GDP values output at current prices; real GDP values output at constant prices. Changes in output affect both measures, but changes in prices only affect nominal GDP ...
... • Gross Domestic Product (GDP) measures both total income and total expenditure on the economy’s output of goods & services. • Nominal GDP values output at current prices; real GDP values output at constant prices. Changes in output affect both measures, but changes in prices only affect nominal GDP ...
Government spending multipliers in contraction and expansion
... the innovations in government spending shocks and the response of GDP and other concerned variables. The precise magnitude of the multiplier hinges on the approach to identification of fiscal shocks and the sample under study. Caldara and Kamps (2008) provide a comprehensive technical discussion and ...
... the innovations in government spending shocks and the response of GDP and other concerned variables. The precise magnitude of the multiplier hinges on the approach to identification of fiscal shocks and the sample under study. Caldara and Kamps (2008) provide a comprehensive technical discussion and ...
Sovereigns versus Banks - Centre for Economic Policy Research
... booms may weigh on aggregate demand Koo (2008); Mian and Sufi (2012), Krugman and Eggertsson (2012): balance sheet repair after asset price collapse or tightening of borrowing limits ...
... booms may weigh on aggregate demand Koo (2008); Mian and Sufi (2012), Krugman and Eggertsson (2012): balance sheet repair after asset price collapse or tightening of borrowing limits ...
THE POLITICAL ECONOMICS OF AUSTERITY Sue Konzelmann
... ‘non-Keynesian’ effects of austerity; and the correlation between public debt levels and economic growth. The class analytics of austerity – who bears the burden of austerity and who benefits – and the process by which alternative ideas penetrate the mainstream and reconstitute the conventional wisd ...
... ‘non-Keynesian’ effects of austerity; and the correlation between public debt levels and economic growth. The class analytics of austerity – who bears the burden of austerity and who benefits – and the process by which alternative ideas penetrate the mainstream and reconstitute the conventional wisd ...
Working With Our Basic Aggregate Demand / Supply Model
... potential (YF), weak demand for investment leads to lower real interest rates, while slack employment in resource markets will place downward pressure on wages and other resource prices (Pr). Conversely, when output exceeds YF, strong demand for capital goods and tight labor market conditions will r ...
... potential (YF), weak demand for investment leads to lower real interest rates, while slack employment in resource markets will place downward pressure on wages and other resource prices (Pr). Conversely, when output exceeds YF, strong demand for capital goods and tight labor market conditions will r ...
Should The Fed Consider Income Inequality When Setting Monetary
... Either way, policymakers have shown that they are at least aware and concerned about the wealth gap and its various manifestations--particularly with regard to unemployment levels. In her report to Congress after the June meeting, at which the FOMC held the benchmark federal funds rate at 0.25%-0.50 ...
... Either way, policymakers have shown that they are at least aware and concerned about the wealth gap and its various manifestations--particularly with regard to unemployment levels. In her report to Congress after the June meeting, at which the FOMC held the benchmark federal funds rate at 0.25%-0.50 ...
ECONOMICS-Krugman_PPTs_Ch(28)
... Active Learning: Practice Holding everything else constant, the multiplier effect for taxes or transfers: a) is the same as the multiplier effect for changes in autonomous aggregate spending. b) is smaller than the multiplier effect for changes in autonomous aggregate spending. ...
... Active Learning: Practice Holding everything else constant, the multiplier effect for taxes or transfers: a) is the same as the multiplier effect for changes in autonomous aggregate spending. b) is smaller than the multiplier effect for changes in autonomous aggregate spending. ...
Should The Fed Consider Income Inequality When Setting Monetary
... Either way, policymakers have shown that they are at least aware and concerned about the wealth gap and its various manifestations--particularly with regard to unemployment levels. In her report to Congress after the June meeting, at which the FOMC held the benchmark federal funds rate at 0.25%-0.50 ...
... Either way, policymakers have shown that they are at least aware and concerned about the wealth gap and its various manifestations--particularly with regard to unemployment levels. In her report to Congress after the June meeting, at which the FOMC held the benchmark federal funds rate at 0.25%-0.50 ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
Lecture7 - UCSB Economics
... Rate Have on US Economy? Federal Reserve Bank of the US may raise short term interest rates to combat inflation Raising interest rates could discourage consumers from purchasing durable goods, house, and cars Raising interest rates could discourage business from borrowing to invest in new equipm ...
... Rate Have on US Economy? Federal Reserve Bank of the US may raise short term interest rates to combat inflation Raising interest rates could discourage consumers from purchasing durable goods, house, and cars Raising interest rates could discourage business from borrowing to invest in new equipm ...
Handout with solution
... is the level of real GDP produced when firms are producing at capacity. Note however the producing at capacity does not mean producing the maximum amount of goods possible. Rather, capacity is defined as the point where firms are operating at normal hours, with a normal sized workforce (i.e. unemplo ...
... is the level of real GDP produced when firms are producing at capacity. Note however the producing at capacity does not mean producing the maximum amount of goods possible. Rather, capacity is defined as the point where firms are operating at normal hours, with a normal sized workforce (i.e. unemplo ...
What Explains the Great Recession and the Slow Recovery?
... http://www.econ.umd.edu/˜cuba. Email: [email protected]. ...
... http://www.econ.umd.edu/˜cuba. Email: [email protected]. ...