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31.1 the short-run phillips curve
31.1 the short-run phillips curve

... 31.2 SHORT-RUN AND LONG-RUN ... Last year, aggregate demand was AD0, aggregate supply was AS0, the price level was 100, and real GDP was $10 trillion (at full employment). 1. If, this year, aggregate demand increases to AD1 and aggregate supply changes to AS1, the price level rises by 3 percent to ...
Principles of Macroeconomics - Webarchiv ETHZ / Webarchive ETH
Principles of Macroeconomics - Webarchiv ETHZ / Webarchive ETH

... ƒ Keynes proposed the theory of liquidity preference to explain determinants of the interest rate. ƒ According to this theory, the interest rate adjusts to balance the supply and demand for money. ƒ An increase in the price level raises money demand and increases the interest rate. ƒ A higher intere ...
As You Sow So Shall You Reap: Public Investment Surges, Growth
As You Sow So Shall You Reap: Public Investment Surges, Growth

... macroeconomic model that explicitly analyzes the links between public investment, economic growth, and debt sustainability. In the model, public capital is productive and complementary to private capital, generating positive medium and long-run effects to increases in public investment. The model ap ...
Canadian Government Debt 2014: A Guide to the
Canadian Government Debt 2014: A Guide to the

... generations of Canadians, since they could face reduced benefits, tax increases, or both. In addition, the size of unfunded liabilities calls into question the structure of programs using contributions of current workers to pay out benefits to retirees. This includes programs like OAS and Medicare t ...
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Document

... Bank of America Announces Plans to Lay Off 30,000 Employees • In September 2011, Bank of America, the second largest bank in the United States, announced that it would be laying off 30,000 of its 288,000 employees. • To some extent, the layoffs reflected the problems banks had been having since the ...
Unemployment in East and West Europe - Deep Blue
Unemployment in East and West Europe - Deep Blue

... fact, in no other country examined here does one see such a pronounced inward shift in the UV curve as we observe in Poland in the mid 1990s. Institutional evidence indicates that there was another factor contributing to the inward shift in Poland’s UV curve, namely an introduction of stricter rules ...
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What Does the Equity Premium Mean? - UQ eSpace

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Comparing the Incidence of Taxes and Social Spending in Brazil
Comparing the Incidence of Taxes and Social Spending in Brazil

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THE EFFECT OF INTEREST RATE, INFLATION RATE, GDP, ON

... recommended that Central Bank of Jordan should pay attention to the inflation phenomenon while conducting new monetary policies. Engen and Hubbard ( 2004): Researchers have determined that an increase in federal government debt equivalent to one percent of GDP, all else equal, would be expected to i ...
Automatic Stabilizers, Fiscal Rules and Macroeconomic Stability*
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Rishabh Kumar Thrift, stagnation and wealth distribution in a United States

... higher wealth concentration ratios but lower rates of capacity utilization, as measured by the output capital ratio. In our model the primary vehicle for wealth accumulation by any class is their saving rate out of income. Classes are distinguished by the functional income distribution - one class ...
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2. Computable General Equilibrium Models: Macroeconomics and

... based on the intuition that the results of an applied CGE model are affected by an aspect which is not usually analysed. Based on their experience with an applied model for Brazil, they were particularly concerned with distributional changes. We may describe their aim using Llunch’s (1979) words: “t ...
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... second possible reason, which is the one most commonly highlighted by neoliberal reform-minded economists, is that even the extensive reforms undertaken so far have been inadequate; they have not addressed some of the more politically difficult areas such as labour market policies and institutions, ...
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The Income Approach to Gross Domestic Product

... As part of the on-going efforts to review and improve Singapore’s economic statistics, the Singapore Department of Statistics has completed the development of annual income-based estimates of GDP. The availability of GDP estimates from the income approach or GDP(I) will facilitate the cross-validati ...
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... public debt crowds out capital and raises interest rates. Most work on the intertemporal budget constraints and on the sustainability of fiscal policy has taken interest rates as given. Exogenous interest rates are a useful simplification in empirically oriented papers and they are commonly defended ...
Chapter 27 Insert B
Chapter 27 Insert B

... Answer: Firms will only make an investment purchase if the expected return is greater than or equal to real interest rate at which it can borrow. The logic is as follows. If you borrow a $100 at an interest rate of 10%, then at the end of the year you will owe $110. Now, if you can earn a rate of re ...
Chapter 27 Insert B
Chapter 27 Insert B

... Answer: Firms will only make an investment purchase if the expected return is greater than or equal to real interest rate at which it can borrow. The logic is as follows. If you borrow a $100 at an interest rate of 10%, then at the end of the year you will owe $110. Now, if you can earn a rate of re ...
Does slow growth increase inequality?
Does slow growth increase inequality?

... It  is  important  to  stress  that  the  relationships  (3)  and  (4)  are  long-­‐term  equilibria  to  which   the  economy  evolves,  provided  that  the  savings  rates  and  the  growth  rates  stay  constant.     As  Piketty  p ...
MTH 134 Unit 5 Lecture Notes and Worksheet
MTH 134 Unit 5 Lecture Notes and Worksheet

... Defn: A cash discount is the discount that a manufacturer can give to a retailer for prompt payment. The discount is taken off the net price. The discount is not taken off the freight charges. Note: The terms of payment are abbreviated as two numbers with a slash between them. #/# . The first number ...
“Fiscal Money” to End the Unending Crisis
“Fiscal Money” to End the Unending Crisis

... Eurozone member state still suffering from a large output gap as well as from inadequate competitiveness. Effective TRC programs may be similarly devised for other Eurozone countries. Italy has long been featuring a high level of public debt (as a ratio to GDP) and a high level of private sector sav ...
Central, Eastern, and Southeastern Europe
Central, Eastern, and Southeastern Europe

... The European Union’s (EUs) Structural and Cohesion Funds (SCF) amount to about one-third of the total EU budget (192.6 billion euro over 2014–20). Their main objectives are to promote convergence, regional competitiveness and employment, and thus to improve the functioning of the internal EU market. ...
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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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