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Final
Final

... Friedman and Phelps predicted that, over time, people would come to expect the higher inflation, so the short-run Phillips curve would shift right (up). When this happened, unemployment would go back to its natural rate, but inflation would be higher (this is the natural-rate hypothesis). The behavi ...
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Form 16a - Delaware Court of Chancery
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... Middle East (generated partly by economic factors) and even the events in developed countries such as the United Kingdom, with countries with already reduced social spending being at the highest risk. The high unemployment and reduced social expenditures may be accompanied by a reduction on educatio ...
fiscal policy worksheet
fiscal policy worksheet

... policy, but when the policy takes effect automatically or independent of Congress, then it is ______________________ fiscal policy. 2. Expansionary fiscal policy is generally designed to (increase, decrease)_______________aggregated demand and thus ___________________ real GDP and employment in the ...
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Quiz: Introductory Macroeconomics

... deficit without causing output to fall. If the Central Bank and the government coordinate policies, can they achieve this goal? If not, why not? If so, what combination of policies would work? (10 points) A combination of a reduction in government spending (or an increase in taxes) and an increase i ...


... 2. first pillar = ‘economic analysis’. It consists of a broad review of recent evolution and likely prospects of economic conditions (e.g., growth, employment, prices, exchange rates, foreign conditions); 3. second pillar = ‘monetary analysis’. It studies the evolution of monetary aggregates (M3, in ...
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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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