AP Macroeconomics AP Exam Date: Wednesday, May 10, 2017
... 31. Define fiscal policy—discretionary and nondiscretionary. 32. Define and measure the effect of built-in stabilizers on the economy. 33. Using AD/AS analysis, show the effect on price level and real gross domestic product (RDGP) of changes in fiscal policy. 34. Define the balance budget multiplier ...
... 31. Define fiscal policy—discretionary and nondiscretionary. 32. Define and measure the effect of built-in stabilizers on the economy. 33. Using AD/AS analysis, show the effect on price level and real gross domestic product (RDGP) of changes in fiscal policy. 34. Define the balance budget multiplier ...
Price and Output and
... the economy toward higher output and price levels: ΔG => shift of AD to the right => Δi => capital inflow=> surplus=> purchase of FX by the central bank => ΔM => further shifts of AD. Furthermore, given e, ΔP => ΔR => changes in exports and imports. • Long-run price adjustments would shift the MRAS ...
... the economy toward higher output and price levels: ΔG => shift of AD to the right => Δi => capital inflow=> surplus=> purchase of FX by the central bank => ΔM => further shifts of AD. Furthermore, given e, ΔP => ΔR => changes in exports and imports. • Long-run price adjustments would shift the MRAS ...
Bubbles and capital flows
... productivity, eliminating domestic investment and raising domestic consumption. This shift in demand lowers the price of investment goods relative to consumption goods all over the world, raising investment in countries with high productivity. Since the transfer of resources from lowto high-producti ...
... productivity, eliminating domestic investment and raising domestic consumption. This shift in demand lowers the price of investment goods relative to consumption goods all over the world, raising investment in countries with high productivity. Since the transfer of resources from lowto high-producti ...
HaydenFS.Seminar.October.2012
... 1. Are the portfolios of shares consistent with our stated goals 2. Industry – is it an Industry conducive to good longterm returns 3. Management – is the Board and Senior Management able to act promptly and professionally? Can Expenditure be varied when Revenue changes? ...
... 1. Are the portfolios of shares consistent with our stated goals 2. Industry – is it an Industry conducive to good longterm returns 3. Management – is the Board and Senior Management able to act promptly and professionally? Can Expenditure be varied when Revenue changes? ...
International Finance and India
... Reduced lending long-term to industrial projects that are considered less lucrative and more risky credit targets. The task of closing the gap for long term finance remains uncompleted Lending is not broad-based or inclusive Fragility increases ...
... Reduced lending long-term to industrial projects that are considered less lucrative and more risky credit targets. The task of closing the gap for long term finance remains uncompleted Lending is not broad-based or inclusive Fragility increases ...
PDF_2D PROBLEMS OF JAPAN`S ECONOMIC SUCCESS
... money to engage in Zaitech (‘financial technology’ – asset speculation that boosted a company’s balance sheets) -‐ As a result, double trading – borrowing money for speculation – became a common practice -‐ Keiretsu banks also lent on basis of group solidarity rather than careful risk assessment o ...
... money to engage in Zaitech (‘financial technology’ – asset speculation that boosted a company’s balance sheets) -‐ As a result, double trading – borrowing money for speculation – became a common practice -‐ Keiretsu banks also lent on basis of group solidarity rather than careful risk assessment o ...
The Non-Existent Hand Joseph Stiglitz Keynes: The Return of the
... them, or of financial markets to devise better instruments for transferring risk from those in less developed countries to those in more advanced ones, who can better absorb it. The central policy message of Keynesian economics is that in a deep recession, monetary policy is likely to be ineffective ...
... them, or of financial markets to devise better instruments for transferring risk from those in less developed countries to those in more advanced ones, who can better absorb it. The central policy message of Keynesian economics is that in a deep recession, monetary policy is likely to be ineffective ...
Presentación en las Jornadas Monetarias y Bancarias BCRA 2011
... interest rates were higher. While this is not a prescription that reflects the Fund’s broader economic mandate, it is a realistic reflection of alarm about the dominance of speculation in the international financial sector. As the scale of speculative positions soared, debt monetization by financial ...
... interest rates were higher. While this is not a prescription that reflects the Fund’s broader economic mandate, it is a realistic reflection of alarm about the dominance of speculation in the international financial sector. As the scale of speculative positions soared, debt monetization by financial ...
Deflation Coming - Federal Reserve Bank of St. Louis
... during the Great Depression, when it was viewed as a source of economic turmoil. Those who fear deflation argue that U.S. monetary policy has been unduly tight at the wrong time—when financial asset prices are at unsustainably high levels and when worldwide excess capacity has severely constrained f ...
... during the Great Depression, when it was viewed as a source of economic turmoil. Those who fear deflation argue that U.S. monetary policy has been unduly tight at the wrong time—when financial asset prices are at unsustainably high levels and when worldwide excess capacity has severely constrained f ...
economic headwinds and tailwinds
... complication every four years is that political managers try to manipulate economic variables so the voters are in a good mood at the time of the next election. Several basic propositions about asset price bubbles and economic activity are reviewed in the next section. The second section involves th ...
... complication every four years is that political managers try to manipulate economic variables so the voters are in a good mood at the time of the next election. Several basic propositions about asset price bubbles and economic activity are reviewed in the next section. The second section involves th ...
the financial theory of investment
... Keynes’s Chapter 12, which is so full of colorful analogies—such as “whirlwinds of speculation”—is so important. Expectations play a critical role in determining asset prices (thus, also in determining effective demand) and these are liable to disappointment and to fluctuation. Thus, even if we ever ...
... Keynes’s Chapter 12, which is so full of colorful analogies—such as “whirlwinds of speculation”—is so important. Expectations play a critical role in determining asset prices (thus, also in determining effective demand) and these are liable to disappointment and to fluctuation. Thus, even if we ever ...
Economics 330 (Kelly)
... 8. If an economy is in a liquidity trap, further reducing the interest rate will have no effect on the economy. FALSE: A change in interest rates may not change investment or consumer durable goods expenditures, however it can still affect net exports and AS via currency depreciation. There are also ...
... 8. If an economy is in a liquidity trap, further reducing the interest rate will have no effect on the economy. FALSE: A change in interest rates may not change investment or consumer durable goods expenditures, however it can still affect net exports and AS via currency depreciation. There are also ...
Policy Note - Levy Economics Institute of Bard College
... funding, asset pricing, or approval of a bailout package. All it requires is Congressional approval to eliminate the cap on member banks’ insured deposits, to bring forward the introduction of interest payments on deposits, and to extend FDIC insurance to any unsecured lending of Fed deposits at mem ...
... funding, asset pricing, or approval of a bailout package. All it requires is Congressional approval to eliminate the cap on member banks’ insured deposits, to bring forward the introduction of interest payments on deposits, and to extend FDIC insurance to any unsecured lending of Fed deposits at mem ...
1. Rational Expectations
... better informed than they really are. He argues that if it was renamed “super-smart-agents expectations” then it would not be used so much in economic modelling. ...
... better informed than they really are. He argues that if it was renamed “super-smart-agents expectations” then it would not be used so much in economic modelling. ...
The demise of neoliberalism? Bill Lucarelli
... financialisation since the mid-1970s have been marked by speculative and predatory asset price booms and busts. Financial deregulation unleashed these powerful redistributive forces of accumulation by dispossession. The quite extraordinary rise in private indebtedness reduced whole populations into ...
... financialisation since the mid-1970s have been marked by speculative and predatory asset price booms and busts. Financial deregulation unleashed these powerful redistributive forces of accumulation by dispossession. The quite extraordinary rise in private indebtedness reduced whole populations into ...
Module 28 - The Money Market
... Mr. Bernstein Shifts in the Money Demand Curve • Shifts make money ...
... Mr. Bernstein Shifts in the Money Demand Curve • Shifts make money ...
OSA
... Excessive money supply Excess consumer, business demand resulted inflation Excessive rate tax cuts ...
... Excessive money supply Excess consumer, business demand resulted inflation Excessive rate tax cuts ...
ECON 2500
... 2. What are positive externalities and how can they be corrected? What are negative externalities and how can they be corrected? How is the concept of market failure illustrated? ...
... 2. What are positive externalities and how can they be corrected? What are negative externalities and how can they be corrected? How is the concept of market failure illustrated? ...
Bubbles and Crashes with Partially Sophisticated Investors!
... to sell. As a result, they get a positive surprise after any "good day" and a negative surprise after any "bad day". Speci…cally, along our bubble equilibrium, investors …rst observe a series of rising prices. Partially sophisticated investors interpret such unexpectedly high prices as a sign that t ...
... to sell. As a result, they get a positive surprise after any "good day" and a negative surprise after any "bad day". Speci…cally, along our bubble equilibrium, investors …rst observe a series of rising prices. Partially sophisticated investors interpret such unexpectedly high prices as a sign that t ...
20100427 worst economy since the great depression
... – But firing people reduces incomes—and further reduces demand for goods and for labor, thus increasing the excess supply... – And shutting down makes assets that were regarded as high-quality investment assets clearly no longer so—and further increases the excess demand for liquid high-quality inve ...
... – But firing people reduces incomes—and further reduces demand for goods and for labor, thus increasing the excess supply... – And shutting down makes assets that were regarded as high-quality investment assets clearly no longer so—and further increases the excess demand for liquid high-quality inve ...
Inflation is
... financial commitments incurred by governments, and a significant decline in economic activity. The collapse of the housing bubble, which peaked in the U.S. in 2006, caused the values of securities tied to real estate pricing to plummet thereafter, damaging financial institutions globally. Questions ...
... financial commitments incurred by governments, and a significant decline in economic activity. The collapse of the housing bubble, which peaked in the U.S. in 2006, caused the values of securities tied to real estate pricing to plummet thereafter, damaging financial institutions globally. Questions ...
Leijonhufvud paper 2009 KeynesCrisisRev
... and some European banks may have been even more highly levered. At leverage ratios in this range, a loss in asset values of a couple of percentage points will suffice to make a bank insolvent. Estimates of financial sector losses in the present crisis, says the Bank of England’s Director for Financi ...
... and some European banks may have been even more highly levered. At leverage ratios in this range, a loss in asset values of a couple of percentage points will suffice to make a bank insolvent. Estimates of financial sector losses in the present crisis, says the Bank of England’s Director for Financi ...
Identifying Speculative Bubbles: A Two-Pillar Surveillance
... Distinguishing irrational investor exuberance from the rational response to lower perceived risk is made difficult in real time by numerous issues, not least that it can only be known with absolute certainty ex-post whether the optimistic ex-ante projections embedded in asset prices were in fact jus ...
... Distinguishing irrational investor exuberance from the rational response to lower perceived risk is made difficult in real time by numerous issues, not least that it can only be known with absolute certainty ex-post whether the optimistic ex-ante projections embedded in asset prices were in fact jus ...
Economic bubble
An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is trade in an asset at a price or price range that strongly deviates from the corresponding asset's intrinsic value. It could also be described as a situation in which asset prices appear to be based on implausible or inconsistent views about the future.Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect, when a sudden drop in prices appears. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone.While some economists deny that bubbles occur, the cause of bubbles remains disputed by those who are convinced that asset prices often deviate strongly from intrinsic values. Many explanations have been suggested, and research has recently shown that bubbles may appear even without uncertainty, speculation, or bounded rationality. In such cases, the bubbles may be argued to be rational, where investors at every point fully compensated for the possibility that the bubble might collapse by higher returns. These approaches require that the timing of the bubble collapse can only be forecast probabilistically and the bubble process is often modelled using a Markov switching model. It has also been suggested that bubbles might ultimately be caused by processes of price coordination or emerging social norms.