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AS Economics Answers - Pearson Schools and FE Colleges
AS Economics Answers - Pearson Schools and FE Colleges

... more. Falling unemployment may push up the price level for three main reasons: an increasing shortage of workers; increased power of trade unions which will push up wage rates; increased confidence in the future which will raise spending. b By encouraging an increase in consumption and investment. I ...
Government Intervention in OECD Member
Government Intervention in OECD Member

ISLM: Part I: The Real Sector
ISLM: Part I: The Real Sector

... With “animal spirits” in play, the whole curve moves around on its own. ...
juan_aviles_eco202_milestone1-3
juan_aviles_eco202_milestone1-3

... ECO 202 Milestone three Professor 26 OCT 15 ...
Chart 12 : Reports of Official Rates for Economic Statistics from
Chart 12 : Reports of Official Rates for Economic Statistics from

...  Most heard of statistics but didn’t know latest rate; low and stable rates mean that consumers delay updating (except on special items such as gasoline)  Costs of updating information much larger than widely assumed given that most mass media do not publish exact figures for the official economic ...
Midterm 1 / Questions and Answers
Midterm 1 / Questions and Answers

... (a) The quantity equation is as follows: M V = P Y and it can be rewritten as M / P = Y / V. Here, M denotes the quantity of nominal money circulating in the economy, and, because of the money market equilibrium, it is equal to the nominal quantity of money demanded. In other words, M / P = (M/P)d . ...
Macro final exam study guide – True/False questions
Macro final exam study guide – True/False questions

... 18.The most commonly used tool of monetary policy by the Federal Reserve system is to change the discount rate. FALSE - Open market operations are the most frequently used tool. 19.An open market purchase of government securities (such as Treasury Bills) by the Fed will decrease the money supply an ...
Chap23
Chap23

... Tend to overstate unemployment because Employment insurance and most welfare programs require recipients to seek employment Some who would prefer to work part time can find only full-time work Some are forced to work overtime and weekends, but would prefer to work fewer hours People in the unde ...
Powerpoint
Powerpoint

... • 3.8 bn Current Account surplus in Jan-Sep 2014 compared to 2.4 bn in Jan-Sep 2013 • Unemployment rate remained on a decreasing path (2.3 p.p. cumulative decline since peak) • General Government balance -2.8% of GDP compared to a target of -3.2% • General Government primary surplus 1.8% of GDP comp ...
The Case for Middle Market Lending
The Case for Middle Market Lending

... Jim Grant of Grant’s Interest Rate Observer recently joked, “I remember interest rates. We used to have them.” No kidding. Seven years after the Great Recession, interest rates in the United States remain remarkably low. Investors in traditional fixed income have three basic options: Wait out the lo ...
The Impact of Declining Fertility and
The Impact of Declining Fertility and

... the duration of an employee’s service. In 2008, an employee with university education with more than 35 years of service received a severance pay equivalent to 44 months’ worth of his/her final monthly salary. Because a substantial proportion of business firms have their own accumulated funds to cov ...
Chapter 5
Chapter 5

... b) The unemployment rate reaches its peaks during ...
chapter 8
chapter 8

... 1. a. Normally, the firm would change its price, because its profit would be $5000 lower on net if it did not. When faced with the one-time cost of $8,000, however, it will not necessarily wish to change its price, especially if the decline in demand is not expected to be permanent. b. In this case, ...
Too Much, Too Many - Goelzer Investment Management
Too Much, Too Many - Goelzer Investment Management

... class in emerging market countries, along with higher factory productivity, has led to too much manufacturing capacity. This is evident by factory utilization rates in the mid-seventy percent range in both the U.S. and China. Another example of the too-much-too-many condition can be found in the ret ...
Household Debt in Turkey: The Critical Threshold for the
Household Debt in Turkey: The Critical Threshold for the

... (non-increasing) debt level. We relate these two main trends (1) declining home ownership rates for the workers/households and (2) involuntary indebtedness with the supply side of the credit market and find that in the long-run instability is most likely. The structure of the paper is as follows. Th ...
Optimal Regulation Of Bank Capital And Liquidity
Optimal Regulation Of Bank Capital And Liquidity

... binding liquidity requirements can have beneficial effects if they reduce the probability of a costly financial crisis, but may also reduce GDP by raising borrowing costs for households and companies. • We estimate both benefits and costs of raising capital and liquidity, with the benefits being in ...
East versus West?
East versus West?

... cent compared with 34-38 per cent in Germany, Italy and France. But this does not automatically mean that east European governments are shy to tax local companies. West European tax systems tend to be riddled with exemptions and many offer generous depreciation rules to encourage certain investments ...
3.4. Officer and Hathaway (1999) Regression Results
3.4. Officer and Hathaway (1999) Regression Results

... included credits of non-taxable companies we would certainly be double counting. Most dividends received by non-taxable companies are passed through… The aggregate redemption (utilisation) fraction of imputation credits…has fluctuated [over the period 1990-96] around 60%. On the basis of these data ...
Economics 200
Economics 200

... B. at GDP levels above the Equilibrium level, the goods and services produced exceed the demand for them C. at GDP levels above the Equilibrium level, Savings exceeds Investment D. all of the above E. none of the above 23. If we applied the Savings=Investment model, which of the following governmen ...
12-2 (Key Question) Assume that a hypothetical economy with
12-2 (Key Question) Assume that a hypothetical economy with

... convenient and reliable transportation systems and other amenities that lower production costs and make their business locations more desirable. Business firms that benefit from these public projects are, in effect, being subsidized by the government spending. These firms are likely to find that the ...
Measurement Uncertainty – Disclosure Requirements
Measurement Uncertainty – Disclosure Requirements

Shifts in Supply and Demand
Shifts in Supply and Demand

... can increase savings if they don’t increase consumption by an equal amount. That’s a big “if”, which is why there’s a “maybe” attached to changes in disposable income. If disposable income rises (income rises or taxes decrease), consumers may save more or they may not (instead, selecting to increase ...
Three Lectures in Economics by Kenneth Creamer
Three Lectures in Economics by Kenneth Creamer

... very poor. For example, whereas GDP per capita in South Africa may be about R40 000 per person in reality a few very rich people have an income of more than R1 000 000 per year and millions of poor people are living off less than R5 000 per year. ...
投影片 1 - National Chung Cheng University
投影片 1 - National Chung Cheng University

... 3.Unemployment rate: Young and Pedregal, 1999 4.Changes in GDP deflator: Neyapti, 2003 5.Interest rate: Cebula, 2003 6.Private credit / GDP 7.Liquid liability / GDP ratio: Polokangas, 1993 8.Saving rate: Evans and Karras, 1996 9.Government debt / GDP: Saleh and Harvie, 2005 10. Non-Agricultural shar ...
I z
I z

... 3.Unemployment rate: Young and Pedregal, 1999 4.Changes in GDP deflator: Neyapti, 2003 5.Interest rate: Cebula, 2003 6.Private credit / GDP 7.Liquid liability / GDP ratio: Polokangas, 1993 8.Saving rate: Evans and Karras, 1996 9.Government debt / GDP: Saleh and Harvie, 2005 10. Non-Agricultural shar ...
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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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