Chapter 11
... Real vs. Nominal • Comparing economic data, measured in dollars (or any currency), across time: – Supposed the measured GDP changed from $5,000 to $10,000 • You have to ask yourself: • Does this increase really reflect a bigger pie … more actual, real GDP or does this increase simply reflect a rise ...
... Real vs. Nominal • Comparing economic data, measured in dollars (or any currency), across time: – Supposed the measured GDP changed from $5,000 to $10,000 • You have to ask yourself: • Does this increase really reflect a bigger pie … more actual, real GDP or does this increase simply reflect a rise ...
Unit 5—Aggregate Models
... Woodworker wants to buy equipment for $1,000. He expects a $100 profit. The expected rate of return is 10%. In order to make a profit, the woodworker would not want to pay more than 10% interest on the investment. ...
... Woodworker wants to buy equipment for $1,000. He expects a $100 profit. The expected rate of return is 10%. In order to make a profit, the woodworker would not want to pay more than 10% interest on the investment. ...
Monetary policy, asset prices and financial stability
... ▪ The subprime mortgage bubble that led to the global financial crisis originated in the US, which was not pursuing inflation targeting, but following its ”just-do-it strategy“ with the dual objective (and focus put on core rather than headline inflation) ...
... ▪ The subprime mortgage bubble that led to the global financial crisis originated in the US, which was not pursuing inflation targeting, but following its ”just-do-it strategy“ with the dual objective (and focus put on core rather than headline inflation) ...
Ch13.pps
... relative to the prices of other goods and services in the economy. If the relative price of wheat is high, she works hard and produces more wheat. If the relative price of wheat is low, she prefers to work less and produce less wheat. The problem is that when the farmer makes her production decision ...
... relative to the prices of other goods and services in the economy. If the relative price of wheat is high, she works hard and produces more wheat. If the relative price of wheat is low, she prefers to work less and produce less wheat. The problem is that when the farmer makes her production decision ...
Lecture 11: Minimisation of cost and demand for factors
... • CES technology with parameters c1=0.4, c2=0.5, ρ=0.9 and s=1.0. • The production function: • y = ((0.4q1-0.9)+(0.5q2-0.9))-1/0.9 • In the next slide I have inserted the isoquant for output = 40 (and also that for output=60). • I have inserted the lowest isocost at the prices w1 = 1 and w2 = 1 for ...
... • CES technology with parameters c1=0.4, c2=0.5, ρ=0.9 and s=1.0. • The production function: • y = ((0.4q1-0.9)+(0.5q2-0.9))-1/0.9 • In the next slide I have inserted the isoquant for output = 40 (and also that for output=60). • I have inserted the lowest isocost at the prices w1 = 1 and w2 = 1 for ...
ECO 154/254
... of inputs. • So, first assume that as a nation, our inputs (n,k,inst) are fixed and we produce 2 goods, x1 and x2. In other words, right now, we only have a certain amount of workers, and capital to work with and a certain level of institutional efficiency within our society. • Next, we’d like to de ...
... of inputs. • So, first assume that as a nation, our inputs (n,k,inst) are fixed and we produce 2 goods, x1 and x2. In other words, right now, we only have a certain amount of workers, and capital to work with and a certain level of institutional efficiency within our society. • Next, we’d like to de ...
Chapter 1 Notes
... supplied by nature Human: people who produce goods and services AKA: Labor Ex: Entrepreneur: take risk of using resources to start new product ...
... supplied by nature Human: people who produce goods and services AKA: Labor Ex: Entrepreneur: take risk of using resources to start new product ...
Revision_on_Changes_in_Costs.pdf
... In the example above, there is a rise in fixed costs - as a result, the AC curve shifts up from AC1 to AC2 There is no change in profit maximizing price or output Profits fall as the gap between price and average cost has declined (i.e. a lower profit margin is made) ...
... In the example above, there is a rise in fixed costs - as a result, the AC curve shifts up from AC1 to AC2 There is no change in profit maximizing price or output Profits fall as the gap between price and average cost has declined (i.e. a lower profit margin is made) ...
Monetary policy, asset prices and financial stability
... Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague ...
... Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague ...
Life under high rates of inflation Inflation and Income inequality
... Inflation - A rise in the average level of all prices. Inflation tax - The revenue the government raises by creating money (Steady State Definition). Economic Inequality – A measure of concentration of income or wealth among economic agents in an economy ...
... Inflation - A rise in the average level of all prices. Inflation tax - The revenue the government raises by creating money (Steady State Definition). Economic Inequality – A measure of concentration of income or wealth among economic agents in an economy ...
ECONOMICS
... potatoes and the income effect results in reduced consumption. The substitution effect and the income effect of the price change both result in increased consumption of potatoes. The substitution effect and the income effect of the price change both result in reduced consumption of potatoes. The sub ...
... potatoes and the income effect results in reduced consumption. The substitution effect and the income effect of the price change both result in increased consumption of potatoes. The substitution effect and the income effect of the price change both result in reduced consumption of potatoes. The sub ...
The Solow Growth Model
... low, k would increase because investment exceeds depreciation. s*f(k*)=δk* ...
... low, k would increase because investment exceeds depreciation. s*f(k*)=δk* ...
Mankiw8e_Student_PPTs_Chapter 14 - E-SGH
... economy will land on a new SRPC, at SRPC (E = 10%)point E, where both and E equal 10 percent. ...
... economy will land on a new SRPC, at SRPC (E = 10%)point E, where both and E equal 10 percent. ...
Most of us would say that higher inflation is a
... • Inflation reduces the real value of money, so people have an incentive to minimize their cash holdings. • Less cash requires more frequent trips to the bank to withdraw money from interest-bearing accounts. • The actual cost of reducing your money holdings is the time and convenience you must sacr ...
... • Inflation reduces the real value of money, so people have an incentive to minimize their cash holdings. • Less cash requires more frequent trips to the bank to withdraw money from interest-bearing accounts. • The actual cost of reducing your money holdings is the time and convenience you must sacr ...
Thinking Like an Economist
... forgone leisure time. – Most students find that economics is difficult and that it takes time to master. – The trick is practice, or learning by doing. Benefits Versus Costs –Weigh up your benefits and costs! ...
... forgone leisure time. – Most students find that economics is difficult and that it takes time to master. – The trick is practice, or learning by doing. Benefits Versus Costs –Weigh up your benefits and costs! ...
Unemployment & Circle
... sPI(I,00,95)=(120/90)x100=133.33 sPI(II,00,95)=(90/75)x100=120 wPI(90,95,00,95)=(133.33x120)1/2 ...
... sPI(I,00,95)=(120/90)x100=133.33 sPI(II,00,95)=(90/75)x100=120 wPI(90,95,00,95)=(133.33x120)1/2 ...
Aggregate Supply
... economy will land on a new SRPC, at SRPC (E = 10%)point E, where both and E equal 10 percent. ...
... economy will land on a new SRPC, at SRPC (E = 10%)point E, where both and E equal 10 percent. ...
Lecture 1
... demand result in an output of Q1 and price P1. But, if producers in the market are able to restrict supply and/or limit entry into the market … the restricted supply S2 will result in an output of Q2 < Q1 and price of P2 > P1. Lack of competition results in too few units produced and a price above t ...
... demand result in an output of Q1 and price P1. But, if producers in the market are able to restrict supply and/or limit entry into the market … the restricted supply S2 will result in an output of Q2 < Q1 and price of P2 > P1. Lack of competition results in too few units produced and a price above t ...
hw2-2
... How fast is the demand x changing with respect to time when the price is $ 7 and is decreasing at the rate dp ...
... How fast is the demand x changing with respect to time when the price is $ 7 and is decreasing at the rate dp ...
paper - CEEL
... "adaptive, self-organizing, out-of-equilibrium processes" (Foley, 2003, p. 2), not a characterization of the way in which the system is designed. Consequently, as was argued by Hayek, the difficulty with policy in the real ...
... "adaptive, self-organizing, out-of-equilibrium processes" (Foley, 2003, p. 2), not a characterization of the way in which the system is designed. Consequently, as was argued by Hayek, the difficulty with policy in the real ...
City University - The University of Reading
... Answer: Money is a medium of exchange, generally acceptable for payment for goods, services, and debts. It reduces transactions costs relative to barter and eliminates the double coincidence of wants. Money is a unit of account, reducing the transactions costs associated with the multiplicity of bar ...
... Answer: Money is a medium of exchange, generally acceptable for payment for goods, services, and debts. It reduces transactions costs relative to barter and eliminates the double coincidence of wants. Money is a unit of account, reducing the transactions costs associated with the multiplicity of bar ...
Abstract
... eliminating inconsistencies emerging from the combination of a marginalists’ supply and demand approach on the one and a long-period position on the other hand. Its function has been to model interest rates as intertemporal phenomena just as well. This, however, would head for a generalisation of Bö ...
... eliminating inconsistencies emerging from the combination of a marginalists’ supply and demand approach on the one and a long-period position on the other hand. Its function has been to model interest rates as intertemporal phenomena just as well. This, however, would head for a generalisation of Bö ...
Macroeconomics
Macroeconomics (from the Greek prefix makro- meaning ""large"" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics.Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price index, and the interrelations among the different sectors of the economy, to better understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific marketsWhile macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy.