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GNP - MIT
GNP - MIT

... Pay a flat 1/3 of their gross wages and profits in taxes. Buy consumer goods equal to 75% of their after-tax wage and dividend income, EXCEPT....C r (interest rate) ...they reduce purchases by $20 for each 1 percentage point interest rates exceed 5% ( and symmetrically raise purchases when rates fal ...
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... (Socrev), benefits (Socexp) and taxes (Taxes), giving rise to the hypothesis that there could be interfering effects. Contemporary and lagged correlation (± 4 quarters), however, is quite low among the three s ...
Effects of Inflation
Effects of Inflation

... Lower than anticipated inflation raises the real wage rate and workers gain at the expense of employers. Higher than anticipated inflation lowers the real wage rate, increases the quantity of labor demanded, makes jobs easier to find, and lowers the unemployment rate. Lower than anticipated inflatio ...
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General framework for stochastic investigations of investment and

... 3.5.1 Assets and liabilities do not generally operate in a hermetically sealed container, without any external monitoring or corrective action being taken. Both legislation and principles of sound financial management require that regular estimates be made of the reserves that are required to meet o ...
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Chapter 10

... the difference out of inventory. In our example, inventory levels fall from $300 billion to $100 billion because individuals purchase $200 billion more of goods than firms produced (to be sold). This is why firms maintain inventories in the first place: to be able to meet an unexpected increase in s ...
Economic Fluctuations, Unemployment, and Inflation
Economic Fluctuations, Unemployment, and Inflation

... • Inflation is a change in the general level of prices as measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, m ...
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... growth was much less than what was achieved in the earlier period. The general slow down in the world economy, consequent on the gulf war, compounded by after effects of the passage of hurricane Hugo in 1988 accounted for the decline in growth rates. This period saw the steady improvement of the cur ...
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Chapter 2: The Data of Macroeconomics
Chapter 2: The Data of Macroeconomics

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... faster reduction in poverty and helping bridge the divides that are currently the focus of so much attention. The first steps in this direction were initiated in the middle of the Tenth Plan based on the National Common Minimum Programme adopted by the Government. These steps must be further strengt ...
Chapter 11 Keynesianism: The Macroeconomics of Wage and Price
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... In the efficiency wage model, if the real wage is higher than the market-clearing wage so that there is an excess supply of labor, (a) firms will hire new workers at lower wages. (b) firms will replace high-paid workers with low-paid, formerly unemployed workers. (c) employers will not hire workers ...
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Foord Conservative Fund (Class B2)

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Macroeconomic Challenges of Structural Transformation: Public
Macroeconomic Challenges of Structural Transformation: Public

... Structural issues include the country’s electricity distribution capacity which is severely constrained causing frequent power shortages. Most of the manufacturing sectors (including the mining sector) primarily rely on captive generation to meet their large power needs. Nonmining customers are forc ...
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Saving and Investment
Saving and Investment

... Answers, part B In both scenarios, public saving falls by $200 billion, and the budget deficit rises from $300 billion to $500 billion. 1. If consumers save the full $200 billion, national saving is unchanged, so investment is unchanged. 2. If consumers save $50 billion and spend $150 billion, then ...
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Do Chinese Investors Get What They Don`t Pay For? Expense

... loads were lower than the average level of the US market. Cheng also argued that such low sales loads might decrease investors' transaction costs, and discourage investors from holding investments long term; long term investment is a rational way for investors to enhance return by decreasing transa ...
Savings, Investment, & Financial Institutions
Savings, Investment, & Financial Institutions

... Answers, part B In both scenarios, public saving falls by $200 billion, and the budget deficit rises from $300 billion to $500 billion. 1. If consumers save the full $200 billion, national saving is unchanged, so investment is unchanged. 2. If consumers save $50 billion and spend $150 billion, then ...
Future Equity Patterns and Baby Boomer Retirements
Future Equity Patterns and Baby Boomer Retirements

... will continue to have profound effects on financial markets and economies worldwide. During their younger years, the cohort demanded infrastructure for education and training. In their prime, this cohort placed high demand on assets such as homes and stocks. Today, with an aging population and the b ...
Savings, Investment, & Financial Institutions
Savings, Investment, & Financial Institutions

... Answers, part B In both scenarios, public saving falls by $200 billion, and the budget deficit rises from $300 billion to $500 billion. 1. If consumers save the full $200 billion, national saving is unchanged, so investment is unchanged. 2. If consumers save $50 billion and spend $150 billion, then ...
Monetary Policy Report
Monetary Policy Report

... and variability in output and employment. In general, the direct effects on consumer prices resulting from changes in interest rates, taxes, excise duties and extraordinary temporary disturbances are not taken into account. Monetary policy influences the economy with a lag. Norges Bank sets the inte ...
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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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