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Answers to Text Questions and Problems in Chapter 7
Answers to Text Questions and Problems in Chapter 7

... cyclical unemployment. Thus the natural unemployment rate by definition should not be affected by a recession. Also by definition, the cyclical unemployment rate rises in recession. The inflation rate tends to decline in the period following a recession. 6. Potential output, or potential GDP, is the ...
Macro coordination: Forward Guidance as `cheap
Macro coordination: Forward Guidance as `cheap

... existence of multiple equilibria is also made by Farmer (2013) in his Houblon-Norman essay entitled “The natural rate hypothesis: an idea past its sell-by date”. As in Miles (2013), our analysis involves comparing two alternative equilibrium paths for the economy, along each of which inflation is mu ...
Chapter 17
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... activities of a government that are not accounted for by any other fund. There is only one general fund per reporting entity. The general fund is created at beginning of the “Unit” and it exists throughout the life of that unit. ...
International Fixed Interest Fund
International Fixed Interest Fund

... This risk indicator is not a guarantee of a fund's future performance. The risk indicator is based on the returns data for the five years ended 31 March 2017. While risk indicators are usually relatively stable, they do shift from time to time. The risk indicator will continue to be updated in futur ...
Testing for a New Economy in the 1990s - to find
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... for which the hypothesis of stability is rejected is the stock price equation. The rejection for the stock price equation is, of course, not surprising given Figure 1. It may be surprising, however, that there were no other major rejections, since a number of macroeconomic variables have large chang ...
Fiscal Policy
Fiscal Policy

... The central revenue deficit climbed from 1.4 percent of GDP in 1980-81 to 2.44 percent of GDP by 1989-90. Across the same period the centre‟s gross fiscal deficit (GFD) climbed from 5.71 percent to 7.31 percent of GDP. Minimum Alternative Tax (MAT) was introduced in 1996-97. It required a company to ...
Leadership, collective decision-making, and pension fund
Leadership, collective decision-making, and pension fund

... As indicated in Figure 1, the five types of decisions make different demands on the available resources. Operational decision-making may be time-extensive rather than time-intensive compared to tactical decision-making. Strategic decision-making may require comprehensive expertise and a level of col ...
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... In this latest edition, we have revised up our 2014 economic growth forecast from 3.3% to 3.4%, as business confidence remains at a record high in Q2 2014, pointing to continued resilience in the economic recovery. Growth this year is forecast to be twice the rate seen in 2013. Encouragingly, there ...
Submission 7 - Fiduciary Friend Pty Ltd
Submission 7 - Fiduciary Friend Pty Ltd

... shape more efficient investment horizons for members of default funds. In simple terms, TTS is what is being referred to by the industry and academia as a “Smart Default”. An August 2015, CIFR Research and Survey confirmed that the industry's attention has moved to lifecycling, member engagement and ...
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Notes to Consolidated Financial Statements

... technique for the market-related value of plan assets but instead will use actual fair value of plan assets. We have applied these changes retrospectively, adjusting all prior periods. The cumulative effect of the change on retained earnings as of January 1, 2008, was a reduction of $1,533, with an ...
ISPE01-Paper-Goerke  221505 en
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... Higher severance payments σ raise unemployment since wages increase and because labour demand shrinks for a given level of wages. Redundancy payments S for collective dismissals are only obtained by workers who have not been caught shirking. Hence, wages can fall. Employment will be unaffected by a ...
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... unit of current consumption rises. (2) The income effect may increase or reduce saving. The income effect reduces saving for a lender, because a person who saves is better off as a result of having a higher real interest rate, so he or she increases current consumption. However, for a borrower, the ...
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... These criteria are very much as expected given the discussions that have taken place with Treasury and DCLG since the first announcement of pooling in the Summer Budget. We set out below the key messages relating to pooling. ...
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... ECB, 2004; Ellis and Smith, 2007), although there remain significant caveats concerning treatment of self-employed income (cf. Pionnier and Guidetti, 2015), and estimates of capital stock. Although ceteris paribus a rising capital share would be expected to lead to rising profit rates (absent offset ...
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... 1. Classify each of the following as employed, unemployed, or not in the labor force: a. a person who is not working but applied for a job at Wal-Mart last week b. a person working part-time who is searching diligently for a full-time job c. an auto worker vacationing in Florida during a layoff at a ...
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... For a country’s long-run growth, education is at least as important as investment in physical capital. *In the United States, each year of schooling raises a person’s wage, on average, by about 10 percent. *Thus, one way the government can enhance the standard of living is to provide schools and enc ...
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... Policy Responses to Supply Shocks • Following a supply shock, there are three possible policy responses: – A Neutral Policy maintains nominal GDP growth so as to allow a decline in the output ratio equal to the increase in the inflation rate. – An Accommodating Policy raises nominal GDP growth so a ...
Lecture 9 - University of California, Berkeley
Lecture 9 - University of California, Berkeley

... A country with greater investment opportunities than savings can fill the savings gap by borrowing from abroad. International capital flows allow countries to run trade imbalances. ...
Determinants of Economic Growth in Tunisia and the Role of... Diana Ekman Undergraduate Economics Thesis Haverford College
Determinants of Economic Growth in Tunisia and the Role of... Diana Ekman Undergraduate Economics Thesis Haverford College

... a free trade agreement with the European Union, including its historical top trading partners, France and Italy, as well as an agreement with the other North African nations. Tunisia’s terms of trade dropped with the fall of oil prices, but have been fairly steady since the early 1990s. The percent ...
2016 Wells Fargo millennial study
2016 Wells Fargo millennial study

... someone entering the workforce is to “start saving for your retirement now.” We found in our survey that most Millennials recognize retirement saving should begin in early adulthood — but about 41% have not yet started. For most, paying off debt or simply not making enough money to save are the majo ...
Searching for Non-Keynesian Effects of Fiscal Policy
Searching for Non-Keynesian Effects of Fiscal Policy

... tomorrow, changes the deadweight cost of taxes at different dates and thereby affects the present value of pre-tax lifetime income. Under some circumstances, this can lead to non-Keynesian results, as is illustrated by Blanchard (1990). He assumes that the deadweight cost of taxation is strongly non ...
Title: Morocco – Crisis Poverty and Social Impact Analysis
Title: Morocco – Crisis Poverty and Social Impact Analysis

... sector to the business cycle. The analysis reveals that Moroccan migrants are employed in sectors that are most sensitive to the crisis. This holds particularly true for Spain and Italy. Moroccan migrants have invested in both the origin and receiving countries. Unfortunately their investments were ...
May 2016 Factsheet Monthly
May 2016 Factsheet Monthly

... disclaimers which apply to the third party data. This document does not constitute an offer to anyone, or a solicitation by anyone, to subscribe for shares of Schroder International Selection Fund (the "Company"). Nothing in this document should be construed as advice and is therefore not a recommen ...
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06/03/09

... successes but also of deep mistakes and failures to be avoided. The first stage of the reforms (1973-81) was characterized by the implementation of a neo-liberal model in its purest and ideological form. Deep trade and financial liberalizations, and the adoption of “neutral” economic policies, were ...
Monetary Policy Transmission
Monetary Policy Transmission

... monetary base respond to the long-term average growth rate of real GDP and medium-term changes in the velocity of circulation of the monetary base. The rule is based on the quantity theory of money. The McCallum rule does not need an estimate of either the real interest rate or the output gap. The M ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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