1 Washington University Spring 2008 Department of Economics
... 11. Milton Friedman argued that, although household studies showed that high-income households generally have lower average propensities to consume, this phenomenon is due to the fact that these households have, on average: A) positive transitory income. B) negative transitory income. C) higher perm ...
... 11. Milton Friedman argued that, although household studies showed that high-income households generally have lower average propensities to consume, this phenomenon is due to the fact that these households have, on average: A) positive transitory income. B) negative transitory income. C) higher perm ...
FinalExamReviewGuide
... GDP = C + I +G + NX What does GDP not measure (think Bhutan) Understand the difference between nominal & real interest rates Understand who is helped & hurt by inflation CPI vs. GDP deflator….(what counts in each one…) Understand 4-types of unemployment Why can’t the natural rate of unemployment fal ...
... GDP = C + I +G + NX What does GDP not measure (think Bhutan) Understand the difference between nominal & real interest rates Understand who is helped & hurt by inflation CPI vs. GDP deflator….(what counts in each one…) Understand 4-types of unemployment Why can’t the natural rate of unemployment fal ...
ppt
... Rule of thumb: in the U.S. today, boost the (risky) real interest rate r by 1%-point: reduces exports by $50 billion/year; reduces ...
... Rule of thumb: in the U.S. today, boost the (risky) real interest rate r by 1%-point: reduces exports by $50 billion/year; reduces ...
Module 33 - Types of Infl
... Moderate Inflation and Disinflation • Cost-push inflation results from an increase in the price of resources, ie an increase in the price of steel will increase the price of cars and many other items • Demand-pull inflation results from an increase in demand for goods and services • Usually coupled ...
... Moderate Inflation and Disinflation • Cost-push inflation results from an increase in the price of resources, ie an increase in the price of steel will increase the price of cars and many other items • Demand-pull inflation results from an increase in demand for goods and services • Usually coupled ...
Untitled
... rates continue for years, the result is called creeping inflation. A rapid increase in price levels is called galloping inflation. If the rate exceeds 50 percent per month, it is called hyperinflation. Deflation, which is a decrease in general price levels, happens very rarely. 3. Name the two main ...
... rates continue for years, the result is called creeping inflation. A rapid increase in price levels is called galloping inflation. If the rate exceeds 50 percent per month, it is called hyperinflation. Deflation, which is a decrease in general price levels, happens very rarely. 3. Name the two main ...
WSJ: Hitting the Limits of Monetary Policy
... the eurozone, U.K., Japan and the U.S. to increase liquidity and raise both market expectations of inflation as well as actual inflation. But so far, the new monetary-policy paradigm hasn’t had the desired effect on these economies. Inflation and inflation expectations around the world today are muc ...
... the eurozone, U.K., Japan and the U.S. to increase liquidity and raise both market expectations of inflation as well as actual inflation. But so far, the new monetary-policy paradigm hasn’t had the desired effect on these economies. Inflation and inflation expectations around the world today are muc ...
66 Classical LRAS Ed
... 1. Missing words What is meant by the Long-run? ____________________________________ The Classical LRAS allows economists to illustrate a number of different scenarios that might face an economy. It assumes that the economy is always at ________________________. This is because Classical economists ...
... 1. Missing words What is meant by the Long-run? ____________________________________ The Classical LRAS allows economists to illustrate a number of different scenarios that might face an economy. It assumes that the economy is always at ________________________. This is because Classical economists ...
Lecture 2 PPT - Kleykamp in Taiwan
... dollars of money (reserves held at the Fed). They do this because of simple Keynesian liquidity preference – they expect higher rates will prevail in the future and do not want to lend now at low rates. (2) Pushing short term rates to zero (and making them negative in real terms) has decreased the r ...
... dollars of money (reserves held at the Fed). They do this because of simple Keynesian liquidity preference – they expect higher rates will prevail in the future and do not want to lend now at low rates. (2) Pushing short term rates to zero (and making them negative in real terms) has decreased the r ...
The importance of inflation expectations
... Box 1: The importance of inflation expectations The credibility of central banks acting within an inflation targeting framework is extremely important, since it allows the sustainable anchoring of economic agents’ expectations. As a direct consequence, their decisions and behaviour will rely to an i ...
... Box 1: The importance of inflation expectations The credibility of central banks acting within an inflation targeting framework is extremely important, since it allows the sustainable anchoring of economic agents’ expectations. As a direct consequence, their decisions and behaviour will rely to an i ...
Chapter 5 - An Introduction to Macroeconomics
... • The Great Depression, 1929-1933 – Revolution in economic thought • Before: economy corrects itself ...
... • The Great Depression, 1929-1933 – Revolution in economic thought • Before: economy corrects itself ...
Institute of Business Management
... isn't in general equilibrium, what determines output and the real interest rate? What economic forces act to bring the economy back to general equilibrium? ...
... isn't in general equilibrium, what determines output and the real interest rate? What economic forces act to bring the economy back to general equilibrium? ...
syllabus2
... D. Demand, supply, and market equilibrium E. Macroeconomic issues: business cycle, unemployment, inflation, and growth Key concepts: Scarcity, economic systems, opportunity cost, production possibilities curve (or frontier), specialization, comparative advantage, basic economic questions, demand, su ...
... D. Demand, supply, and market equilibrium E. Macroeconomic issues: business cycle, unemployment, inflation, and growth Key concepts: Scarcity, economic systems, opportunity cost, production possibilities curve (or frontier), specialization, comparative advantage, basic economic questions, demand, su ...
Short answer essay
... 4. The most important factor that leads to an effective monetary body is b. relative independence from the central government. 5. An secondary effect of an increase in the Long Run Aggregate Supply is a(n) d. all of the above 6. Fiscal policy refers to c. changes in government expenditures and taxat ...
... 4. The most important factor that leads to an effective monetary body is b. relative independence from the central government. 5. An secondary effect of an increase in the Long Run Aggregate Supply is a(n) d. all of the above 6. Fiscal policy refers to c. changes in government expenditures and taxat ...
