chapter 05
... 6) There is only one firm in a small island country. The firm produced 1,000 units of Good X during a particular year out of which it could sell 900. If each unit of the good sells for $500, what is the gross domestic product of the country? A) $40,000 B) $450,000 C) $500,000 D) $150,000 Answer: C ...
... 6) There is only one firm in a small island country. The firm produced 1,000 units of Good X during a particular year out of which it could sell 900. If each unit of the good sells for $500, what is the gross domestic product of the country? A) $40,000 B) $450,000 C) $500,000 D) $150,000 Answer: C ...
public - Europa.eu
... The EDP recommendation sets out annual targets for the headline deficit, with the final year target at or below 3% of GDP, “consistent with a minimum annual improvement of at least 0.5% of GDP as a benchmark” 7 in the structural balance. The EDP recommendation is also formulated in terms of the expe ...
... The EDP recommendation sets out annual targets for the headline deficit, with the final year target at or below 3% of GDP, “consistent with a minimum annual improvement of at least 0.5% of GDP as a benchmark” 7 in the structural balance. The EDP recommendation is also formulated in terms of the expe ...
NBER WORKING PAPER SERIES INTERNATIONAL CAPITAL FLOWS UNDER DISPERSED INFORMATION: Cédric Tille
... DSGE literature in macroeconomics. We adopt the two key features of noisy rational expectations (NRE) models from the market microstructure literature. First, agents have private information about future fundamentals. Second, there is “noise” in the form of unobserved portfolio shifts, which preven ...
... DSGE literature in macroeconomics. We adopt the two key features of noisy rational expectations (NRE) models from the market microstructure literature. First, agents have private information about future fundamentals. Second, there is “noise” in the form of unobserved portfolio shifts, which preven ...
26 Expenditure Multipliers.tst
... C) the change in imports divided by the change in real GDP that brought it about, other things remaining the same D) disposable income minus consumption expenditure minus saving divided by real GDP E) imports minus exports Topic: Fixed Prices and Expenditure Plans 50) The schedule that lists aggrega ...
... C) the change in imports divided by the change in real GDP that brought it about, other things remaining the same D) disposable income minus consumption expenditure minus saving divided by real GDP E) imports minus exports Topic: Fixed Prices and Expenditure Plans 50) The schedule that lists aggrega ...
A Comparison between ABS and National Accounts
... The other two are the expenditure approach, resulting in GDP(E), and the income approach, resulting in GDP(I). In contrast to GDP(P), which is the sum of all production activity within the economy, GDP(E) is the sum of all final expenditure within the economy plus trade, while GDP(I) is the sum of a ...
... The other two are the expenditure approach, resulting in GDP(E), and the income approach, resulting in GDP(I). In contrast to GDP(P), which is the sum of all production activity within the economy, GDP(E) is the sum of all final expenditure within the economy plus trade, while GDP(I) is the sum of a ...
Telecommunications in small economies: the impact of liberalization
... specific line of distinction between a small from a large one. The literature on small economies attempts to conceptualize smallness in terms of measurable variables; notably, population, economic activity and geographic area, whether combined or individually (Armstrong and Read, 1998). Population i ...
... specific line of distinction between a small from a large one. The literature on small economies attempts to conceptualize smallness in terms of measurable variables; notably, population, economic activity and geographic area, whether combined or individually (Armstrong and Read, 1998). Population i ...
"Monetary Policy According to HANK"
... A prerequisite for the successful conduct of monetary policy is a satisfactory understanding of the monetary transmission mechanism – the ensemble of economic forces that link monetary policy to the aggregate performance of the economy. This paper is concerned with the transmission mechanism of mone ...
... A prerequisite for the successful conduct of monetary policy is a satisfactory understanding of the monetary transmission mechanism – the ensemble of economic forces that link monetary policy to the aggregate performance of the economy. This paper is concerned with the transmission mechanism of mone ...
Monetary Policy According to HANK ∗ Greg Kaplan Benjamin Moll
... A prerequisite for the successful conduct of monetary policy is a satisfactory understanding of the monetary transmission mechanism – the ensemble of economic forces that link monetary policy to the aggregate performance of the economy. This paper is concerned with the transmission mechanism of mone ...
... A prerequisite for the successful conduct of monetary policy is a satisfactory understanding of the monetary transmission mechanism – the ensemble of economic forces that link monetary policy to the aggregate performance of the economy. This paper is concerned with the transmission mechanism of mone ...
Note: Figures in some tables may not add up to the total published
... This issue of Economic and Social Indicators on Quarterly National Accounts (QNA) presents quarterly estimates of Gross Domestic Product (GDP) for the first quarter of 2012 to the fourth quarter of 2015. Estimates have been worked out using both the production and the expenditure approach, based on ...
... This issue of Economic and Social Indicators on Quarterly National Accounts (QNA) presents quarterly estimates of Gross Domestic Product (GDP) for the first quarter of 2012 to the fourth quarter of 2015. Estimates have been worked out using both the production and the expenditure approach, based on ...
Public Investment in Resource Abundant Low
... (2007), Collier et al. (2010), and the Natural Resource Charter (2010)). While consumption smoothing along the PIH principle may still be desirable, the prospect of using resource wealth to build much needed public infrastructure is worth studying in more detail. To see whether developing countries ...
... (2007), Collier et al. (2010), and the Natural Resource Charter (2010)). While consumption smoothing along the PIH principle may still be desirable, the prospect of using resource wealth to build much needed public infrastructure is worth studying in more detail. To see whether developing countries ...
Valuation effects and sustainability of current account
... From a theoretical point of view, the traditional Keynesian approach to the current account puts the emphasis on international price competitiveness and relative demand in explaining current account movements. However, the intertemporal approach formulated at the beginning of the 1980’s has emphasiz ...
... From a theoretical point of view, the traditional Keynesian approach to the current account puts the emphasis on international price competitiveness and relative demand in explaining current account movements. However, the intertemporal approach formulated at the beginning of the 1980’s has emphasiz ...
Slayt 1
... accounts that may result from the classification of units, the classification of transactions and the time of recording of transactions. • Merchandise trade statistics may be prone to classification errors, incorrect values, and incorrect quantity measures. The quantity and value information produce ...
... accounts that may result from the classification of units, the classification of transactions and the time of recording of transactions. • Merchandise trade statistics may be prone to classification errors, incorrect values, and incorrect quantity measures. The quantity and value information produce ...
What is Economics? 1 Chapter 13 expenditure multipliers: The
... Data for the United States show that the U.S. consumption function has shifted upward over time because economic growth has created greater wealth and higher expected future income. ...
... Data for the United States show that the U.S. consumption function has shifted upward over time because economic growth has created greater wealth and higher expected future income. ...
Quarterly National Accounts
... GDP growth rate for the first quarter of 2006 over to the corresponding quarter of 2005 is estimated at +7.2%. Growths were registered in all sectors except “Construction” (Table 2). “Agriculture, hunting, forestry and fishing” grew by 2.2% at the first quarter of 2006 compared to 0.2% at the last q ...
... GDP growth rate for the first quarter of 2006 over to the corresponding quarter of 2005 is estimated at +7.2%. Growths were registered in all sectors except “Construction” (Table 2). “Agriculture, hunting, forestry and fishing” grew by 2.2% at the first quarter of 2006 compared to 0.2% at the last q ...
Myths and Facts about Fiscal Discretion: A New Measure of
... to social contracts or political exchanges, which are hard to modify. Not only these types of expenditures, such as health, education and pensions, are hard to change, but their use to achieve short-term stabilization is debatable. Isolating discretionary policies is complicated as every spending c ...
... to social contracts or political exchanges, which are hard to modify. Not only these types of expenditures, such as health, education and pensions, are hard to change, but their use to achieve short-term stabilization is debatable. Isolating discretionary policies is complicated as every spending c ...
Chapter 6 – The gross domestic product for Norway
... as part of national income when they are traded in a market. The system is, however, not entirely consistent. Several exceptions are made. An important change during the last centuries concerns the increasing role of the market and the diminishing role of non-market activities. If the calculations w ...
... as part of national income when they are traded in a market. The system is, however, not entirely consistent. Several exceptions are made. An important change during the last centuries concerns the increasing role of the market and the diminishing role of non-market activities. If the calculations w ...
Chapter 11: Aggregate Expenditure and Output in the Short Run
... Firms focus on the pro…ts that remain after paying taxes. A reduction in the corporate income tax on the pro…ts increases the after-tax pro…tability of investment. Investment tax incentives (it provides …rms with a tax reduction when they spend on new investment goods) also increase investment spend ...
... Firms focus on the pro…ts that remain after paying taxes. A reduction in the corporate income tax on the pro…ts increases the after-tax pro…tability of investment. Investment tax incentives (it provides …rms with a tax reduction when they spend on new investment goods) also increase investment spend ...
Patterns, Paradoxes, and Puzzles of International Capital Flows
... the “new” rule is about transitory income shocks and the evidence provided by Glick and Rogoff (1995) is such that TFP shocks are persistent for the G7 countries.9 Glick and Rogoff (1995) argue that the intertemporal approach to the current account implies that following a persistent country-specifi ...
... the “new” rule is about transitory income shocks and the evidence provided by Glick and Rogoff (1995) is such that TFP shocks are persistent for the G7 countries.9 Glick and Rogoff (1995) argue that the intertemporal approach to the current account implies that following a persistent country-specifi ...
EXPENDITURES: GROWTH AND STRUCTURE
... 3.11 Total interest payments by the Union government in the year under review (1999-00) increased from Rs. 77882 crore in 1998-99 to Rs. 94593 crore, an increase of 21.46 percent. The government has also paid an amount of Rs. 21947 crore as interest which includes Rs 1749 crore towards management co ...
... 3.11 Total interest payments by the Union government in the year under review (1999-00) increased from Rs. 77882 crore in 1998-99 to Rs. 94593 crore, an increase of 21.46 percent. The government has also paid an amount of Rs. 21947 crore as interest which includes Rs 1749 crore towards management co ...
Chapter 10
... 4. Figure 25.13 (page 595/249) illustrates the long-run effects of an increase in autonomous expenditure at full employment. If the increase in autonomous expenditure takes real GDP above potential GDP, the money wage rate rises, the SAS curve shifts leftward, and real GDP decreases until it is back ...
... 4. Figure 25.13 (page 595/249) illustrates the long-run effects of an increase in autonomous expenditure at full employment. If the increase in autonomous expenditure takes real GDP above potential GDP, the money wage rate rises, the SAS curve shifts leftward, and real GDP decreases until it is back ...
NBER WORKING PAPER SERIES RECESSION Joshua Aizenman
... number of countries that saw their banking sector equity indices or stock market indices bottom in that quarter, the number of countries that saw the lowest net capital inflows or net portfolio inflows relative to 2007 averages in that quarter and the number of countries that saw their EMP peak (sin ...
... number of countries that saw their banking sector equity indices or stock market indices bottom in that quarter, the number of countries that saw the lowest net capital inflows or net portfolio inflows relative to 2007 averages in that quarter and the number of countries that saw their EMP peak (sin ...
The Reserve Bank’s process for forecasting business investment
... It is important to note that a single investment project can be divided into several components of business investment. For example, a new factory might involve both non-residential investment (the factory building) and PME ex-computers investment (the new machinery installed inside the factory). Ty ...
... It is important to note that a single investment project can be divided into several components of business investment. For example, a new factory might involve both non-residential investment (the factory building) and PME ex-computers investment (the new machinery installed inside the factory). Ty ...
Document
... • Consumption as a Function of Real GDP ‒ Disposable income changes when either real GDP changes or net taxes change. ‒ If tax rates don’t change, real GDP is the only influence on disposable income, so consumption expenditure is a function of real GDP. ‒ We use this relationship to determine real G ...
... • Consumption as a Function of Real GDP ‒ Disposable income changes when either real GDP changes or net taxes change. ‒ If tax rates don’t change, real GDP is the only influence on disposable income, so consumption expenditure is a function of real GDP. ‒ We use this relationship to determine real G ...
PDF
... Real GDP growth rate is one of the most commonly variable used as explanatory variable to measure its effect on domestic private investment. Some literatures such as Fielding (1997), Serven and Solimano (1992) and Greene and Villanueva (1991) explained that private investment is positively related w ...
... Real GDP growth rate is one of the most commonly variable used as explanatory variable to measure its effect on domestic private investment. Some literatures such as Fielding (1997), Serven and Solimano (1992) and Greene and Villanueva (1991) explained that private investment is positively related w ...
Gross fixed capital formation
Gross fixed capital formation (GFCF) is a macroeconomic concept used in official national accounts such as the United Nations System of National Accounts (UNSNA), National Income and Product Accounts (NIPA) and the European System of Accounts (ESA). The concept dates back to the National Bureau of Economic Research (NBER) studies of Simon Kuznets of capital formation in the 1930s, and standard measures for it were adopted in the 1950s. Statistically it measures the value of acquisitions of new or existing fixed assets by the business sector, governments and ""pure"" households (excluding their unincorporated enterprises) less disposals of fixed assets. GFCF is a component of the expenditure on gross domestic product (GDP), and thus shows something about how much of the new value added in the economy is invested rather than consumed.GFCF is called ""gross"" because the measure does not make any adjustments to deduct the consumption of fixed capital (depreciation of fixed assets) from the investment figures. For the analysis of the development of the productive capital stock, it is important to measure the value of the acquisitions less disposals of fixed assets beyond replacement for obsolescence of existing assets due to normal wear and tear. ""Net fixed investment"" includes the depreciation of existing assets from the figures for new fixed investment, and is called net fixed capital formation.GFCF is not a measure of total investment, because only the value of net additions to fixed assets is measured, and all kinds of financial assets are excluded, as well as stocks of inventories and other operating costs (the latter included in intermediate consumption). If, for example, one examines a company balance sheet, it is easy to see that fixed assets are only one component of the total annual capital outlay.The most important exclusion from GFCF is land sales and purchases. The original reason, leaving aside complex valuation problems involved in estimating the value of land in a standard way, was that if a piece of land is sold, the total amount of land already in existence, is not regarded as being increased thereby; all that happens is that the ownership of the same land changes. Therefore, only the value of land improvement is included in the GFCF measure as a net addition to wealth. In special cases, such as land reclamation from the sea, a river or a lake (e.g. a polder), new land can indeed be created and sold where it did not exist before, adding to fixed assets. The GFCF measure always applies to the resident enterprises of a national territory, and thus if e.g. oil exploration occurs in the open seas, the associated new fixed investment is allocated to the national territory in which the relevant enterprises are resident. Data is usually provided by statistical agencies annually and quarterly, but only within a certain time-lag. Fluctuations in this indicator are often considered to show something about future business activity, business confidence and the pattern of economic growth. In times of economic uncertainty or recession, typically business investment in fixed assets will be reduced, since it ties up additional capital for a longer interval of time, with a risk that it will not pay itself off (and fixed assets may therefore also be scrapped faster). Conversely, in times of robust economic growth, fixed investment will increase across the board, because the observed market expansion makes it likely that such investment will be profitable in the future.