Panel Discussion James Tobin*
... power to manage aggregate demand. Whatever its goals, the Fed can realize them only by affecting agg~regate demand for goods and services. I wish the conference had discussed more fully the mechanisms of transmission of monetary policies these days. The Fed has chosen the shortest interest rate as i ...
... power to manage aggregate demand. Whatever its goals, the Fed can realize them only by affecting agg~regate demand for goods and services. I wish the conference had discussed more fully the mechanisms of transmission of monetary policies these days. The Fed has chosen the shortest interest rate as i ...
Chapter 15
... Government must spend enough money to raise aggregate demand to get people back to work. ...
... Government must spend enough money to raise aggregate demand to get people back to work. ...
Inflation - ThaparNotes
... • Cost Push Inflation Demand-pull inflation occurs when demand exceeds supply whereas Cost-push inflation happens when there is an increase in the cost of raw materials needed to produce the goods. ...
... • Cost Push Inflation Demand-pull inflation occurs when demand exceeds supply whereas Cost-push inflation happens when there is an increase in the cost of raw materials needed to produce the goods. ...
Shifting LRAS - The Good, the Bad and the Economist
... Explain, using the two models above, how factors leading to changes in the quantity and/or quality of factors of production, (including improvements in efficiency, new technology, reductions in unemployment, institutional changes), can shift the aggregate supply curve over the long term ...
... Explain, using the two models above, how factors leading to changes in the quantity and/or quality of factors of production, (including improvements in efficiency, new technology, reductions in unemployment, institutional changes), can shift the aggregate supply curve over the long term ...
CHAPTER 13 C Level Questions 1. In the sticky
... wages. Suppose further that labor contracts specify that the nominal wage be fully indexed for inflation as measured by the CPI. That is, the nominal wage is to be adjusted to fully compensate for changes in the consumer price index. How does this indexation alter the short run aggregate supply curv ...
... wages. Suppose further that labor contracts specify that the nominal wage be fully indexed for inflation as measured by the CPI. That is, the nominal wage is to be adjusted to fully compensate for changes in the consumer price index. How does this indexation alter the short run aggregate supply curv ...
13.3 Economic Instability
... Laissez-faire—the doctrine that the government should not intervene in a market economy beyond the minimum required to maintain peace and property rights ...
... Laissez-faire—the doctrine that the government should not intervene in a market economy beyond the minimum required to maintain peace and property rights ...
S Economic SYNOPSES U.S. Historical Experience with Deflation
... Many people associate deflation with difficult economic times—slow growth and/or high unemployment—such as in Japan since the early 1990s or in the United States during the Great Depression. Yet, not all deflationary periods are associated with hard times. For example, in the United States from 1876 ...
... Many people associate deflation with difficult economic times—slow growth and/or high unemployment—such as in Japan since the early 1990s or in the United States during the Great Depression. Yet, not all deflationary periods are associated with hard times. For example, in the United States from 1876 ...
10. Oil Shocks of the 1970s and the Great Depression
... supply shock-a significant fall in oil prices. As the model predicts, inflation and unemployment ______: ...
... supply shock-a significant fall in oil prices. As the model predicts, inflation and unemployment ______: ...
Ch. 14 Inflation
... 2. Contractionary / Tight Money Policy – Sell bonds, increase the bank rate and use ...
... 2. Contractionary / Tight Money Policy – Sell bonds, increase the bank rate and use ...
Economics for Today 2nd edition Irvin B. Tucker
... supply curve leftward. d. lower wages will shift the short-run aggregate supply curve rightward. d. According to classical economists, competition among employed workers during a recession causes a reduction in the cost of labor. As a result, firms can supply more real GDP at each possible price lev ...
... supply curve leftward. d. lower wages will shift the short-run aggregate supply curve rightward. d. According to classical economists, competition among employed workers during a recession causes a reduction in the cost of labor. As a result, firms can supply more real GDP at each possible price lev ...
PS2 solution
... oil shock, then things get interesting. Now, the rise in inflation turns a constant nominal rate into a cut in the real rate; the MP curve moves down. The central bank has just unwittingly created a boom. With positive short-run output, inflation rises persistently, year after year, as long as the ...
... oil shock, then things get interesting. Now, the rise in inflation turns a constant nominal rate into a cut in the real rate; the MP curve moves down. The central bank has just unwittingly created a boom. With positive short-run output, inflation rises persistently, year after year, as long as the ...
The End of the Classical Dichotomy
... which have been useful in analyzing the long term effects of economic policies and economic events on the employment, capital accumulation, production, terms of trade, inflation and the exchange rate. The primary assumption that we have made is that nominal prices, the prices of goods in terms of cu ...
... which have been useful in analyzing the long term effects of economic policies and economic events on the employment, capital accumulation, production, terms of trade, inflation and the exchange rate. The primary assumption that we have made is that nominal prices, the prices of goods in terms of cu ...
Measuring Unemployment Measuring Unemployment (cont.)
... • Many economists who do not favor fiscal policy as a way of stabilizing the economy believe monetary policy is the answer. ...
... • Many economists who do not favor fiscal policy as a way of stabilizing the economy believe monetary policy is the answer. ...
short run aggregate supply
... • Based on the classical view that markets tend to correct themselves quickly when they are pushed into disequilibrium by some shock. • In the long run product markets like the markets for oil, cameras or meals out and factor markets such as the market for labour will be in equilibrium. • If all mar ...
... • Based on the classical view that markets tend to correct themselves quickly when they are pushed into disequilibrium by some shock. • In the long run product markets like the markets for oil, cameras or meals out and factor markets such as the market for labour will be in equilibrium. • If all mar ...
Has the resurgence of Keynesianism already peaked?
... to varying degrees, made monetary aggregates less meaningful as indicators. The majority of central banks pay increasingly less attention to the growth of the money supply, or even ignore it altogether. Inflation targeting, the strategy aimed at controlling inflation directly, has largely held sway ...
... to varying degrees, made monetary aggregates less meaningful as indicators. The majority of central banks pay increasingly less attention to the growth of the money supply, or even ignore it altogether. Inflation targeting, the strategy aimed at controlling inflation directly, has largely held sway ...
Previous Exam - Napa Valley College
... Supply-side policy was first widely used in the U.S. under President __________________ while (Keynesian) fiscal policy was first widely used in the U.S. under President ____________________ What kind of gap do we have for each of the following: (No gap, inflationary or recessionary) Given the most ...
... Supply-side policy was first widely used in the U.S. under President __________________ while (Keynesian) fiscal policy was first widely used in the U.S. under President ____________________ What kind of gap do we have for each of the following: (No gap, inflationary or recessionary) Given the most ...
Monetarism Revisited - Research Showcase @ CMU
... Britain, the Radcliffe Committee did the same. Prominent economists like Nicholas Kaldor and Joan Robinson denied any role for money in inflation well into the 1980s. In the simple Keynesian models of the time, the government used fiscal policy to control aggregate output. The central bank's role, i ...
... Britain, the Radcliffe Committee did the same. Prominent economists like Nicholas Kaldor and Joan Robinson denied any role for money in inflation well into the 1980s. In the simple Keynesian models of the time, the government used fiscal policy to control aggregate output. The central bank's role, i ...
Test 4
... 17. The vertical Phillips curve occurs in the long run because A) the aggregate supply curve is vertical which means that changes in aggregate demand will not change unemployment. B) wage and price rigidities prevent changes in aggregate demand to change unemployment. C) economic agents are quick to ...
... 17. The vertical Phillips curve occurs in the long run because A) the aggregate supply curve is vertical which means that changes in aggregate demand will not change unemployment. B) wage and price rigidities prevent changes in aggregate demand to change unemployment. C) economic agents are quick to ...
SOTU and the Contemporary Macroeconomic Consensus
... FED policy to steadily increase the money supply to steadily increase GDP regardless of business cycle Take all decision-making away from politicians & avoid the lag that comes with discretionary fiscal policy In fact, discretionary fiscal policy only prolongs recession Very little contempor ...
... FED policy to steadily increase the money supply to steadily increase GDP regardless of business cycle Take all decision-making away from politicians & avoid the lag that comes with discretionary fiscal policy In fact, discretionary fiscal policy only prolongs recession Very little contempor ...
