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Exam Answers
Exam Answers

... e) Real wages remained unchanged because of the indexing of union wages to inflation, and as a result, labor costs also remained unchanged. 23. In his assigned article on the U.S. economic outlook, Saul Hymans argued that the number of jobs in the U.S. had expanded in November by substantially more ...
Financial Crisis in Korea
Financial Crisis in Korea

... – Korea’s Growth rate surpassed 7% – Inflation remained at moderate levels – Domestic saving increasingly financed the rapidly rising investment rate ...
There is no such thing as a free lunch
There is no such thing as a free lunch

... Background material – VoxEU column ...
LESSONS FROM THE HOUSING CRISIS BOG_Karakitsos
LESSONS FROM THE HOUSING CRISIS BOG_Karakitsos

... • Issuance of US Treasuries: $2.5 trillion in 2009 • Rising long term interest rates • Printing of money: Inflation when economy recovers. Dollar depreciation. ...
In search of increased aggregate demand and sustainability
In search of increased aggregate demand and sustainability

... • Employment focused policies are need to sustain aggregate demand and to put into motion a virtuous circle of expanding and inclusive economic growth ▫ Increased investment in infrastructure and maintenance ▫ Ease of credit conditions for micro and SMEs ...
S ’ F
S ’ F

... on the next 75 years typically involve the build up of Trust Fund assets in the near term and the sale of those assets to pay benefits in the out years. Since the trust funds have no further bonds to sell in the 76th year, the program is suddenly short of money. Lasting solvency would require either ...
Four things we learned from the Wealth and Assets Survey
Four things we learned from the Wealth and Assets Survey

... pension (that includes pensions that people are paying into as well as those that they are not) was £46,900. According to the Legal and General annuity calculator, this could provide an annual income of £2,659 over the course of retirement1. In effect then, this would only provide enough income to t ...
Economic Policy and the Aggregate Demand
Economic Policy and the Aggregate Demand

... shift the aggregate demand curve in response to a supply shock, two bad things are happening simultaneously: a fall in aggregate output, leading to a rise in unemployment, AND a rise in the aggregate price level. Any policy that shifts the aggregate demand curve helps one problem only by making the ...
Document
Document

... The initial optimism has worn out. The rapid flight of capital from country started. Because of: Disappointing inflation results for October, Unexpectedly high monthly trade deficits, Political difficulties faced in privatization, Worsening relations with the EU, The economic crisis in Argentina, Ri ...
Venezuela_en.pdf
Venezuela_en.pdf

... The government continued to supply oil to a number of countries within the framework of the Bolivarian Alternative for Latin America and the Caribbean, the Petrocaribe energy cooperation agreement, Petrosur, and bilateral agreements signed with a number of countries. In April 2008, legislation was a ...
It is a great honor for me to address you and I want to
It is a great honor for me to address you and I want to

... current  day  is  not  at  a  risk  for  a  fall.  France   did  not  have  a  debt  crisis,  but  with  a   government  size  of  56  percent  of  GDP,  this   country  can  afford  cuts  in  taxes  and   spending.       Of ...
Endogenous Variables Exogenous Variables
Endogenous Variables Exogenous Variables

... consultations. The Honor Code, however, remains in effect. Be sure to always clearly show your work; correct answers without supporting work will gain you few points. The exam counts for 140 points, 35% of the total for the course. You have until five p.m. to complete the exam. Answer question 1, tw ...
Midterm Exam 2003 Question 1 Discuss two of the following: a
Midterm Exam 2003 Question 1 Discuss two of the following: a

... interest rate. Explain in words how this policy affects output, interest rates, investment and consumption. Setting all variables back to their original levels, calculate the new equilibrium values for Y, i, C and I if the Central Bank increased the money supply from 500 to 600. Using diagrams, show ...
Last day to sign up for AP Exam
Last day to sign up for AP Exam

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Last day to sign up for AP Exam
Last day to sign up for AP Exam

... Real GDP (billions) ...
Name: Unit 4 FRQ Review Per: _____ Question 1 Assume the
Name: Unit 4 FRQ Review Per: _____ Question 1 Assume the

... Assume policy makers are classically trained and take no policy action. Explain what will happen to each of the following on a new graph. Explain (in words) why classical economists would believe this shift would happen. a. Short run aggregate supply b. Employment ...
Statement from Department of Social Protection
Statement from Department of Social Protection

... country is a good place to raise children. Even to take a hard-nosed economist’s look at it, it represents the means through which we guarantee our future prosperity and well-being. What I and my colleagues have been wrestling with is not the principle of such supports, but with how we might put thi ...
Investment Analysis
Investment Analysis

...  Despite the fact that we are afraid of risk, we will buy risky assets. Only if we hope to get a reward for it!  If we want to make money, we have to buy equity, high-yield bonds of companies that are not so solvent, … It has risk, but we need to take on this risk in order to make money. ...
Taxes, Tariffs and Fees: How Government Raises
Taxes, Tariffs and Fees: How Government Raises

Dominican_Republic_en.pdf
Dominican_Republic_en.pdf

... is improving (35.8%). GDP growth (accumulated 7.6% as of the third quarter) is due to buoyant domestic demand. Improving labour conditions and easier access to credit supported consumption. Investment (which is projected to expand by nearly 20% after contracting 14.7% in 2009) has benefited from cre ...
1) Corporate financial plans are often used as a basis
1) Corporate financial plans are often used as a basis

... decisions, but be rescued by good luck. In other words, it may be difficult to separate performance and ability from results. Corporations use numerous arrangements in an attempt to ensure that managers’ actions are consistent with stockholders’ objectives. Agency costs can be mitigated by ‘carrots, ...
Sample quiz 1
Sample quiz 1

PDF Download
PDF Download

... Not only the nominal bilateral USD/EUR exchange rate has risen in recent month, the same is true for the more important effective rate and especially the real effective exchange rate of the euro. From its low in June 2001 at 86.3 (19991 Q! = 100) it rose to 91.5 in May 2002. From August 2001 to Apri ...
3.4.1 Demand Side Policies
3.4.1 Demand Side Policies

... – Minimum reserve requirements ...
Cyclically-adjusted budget balances: a methodological
Cyclically-adjusted budget balances: a methodological

... system. For proportional taxes, the value will be unity, but where there are several rates the elasticity can exceed unity (progressivity) or fall below it (regressivity). The personal income tax is generally progressive, being characterised by a statutory rate which rises with taxable income, while ...
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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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