IB ECONOMICS SL
... a. Illustrate an increase in the AD b. What happens to the price level as AD increases? c. Explain why this occurs according to each theory d. (for c/d above) Explain what the effects of this increase have on the economy as a whole 61. Define the following terms and explain what causes them to occur ...
... a. Illustrate an increase in the AD b. What happens to the price level as AD increases? c. Explain why this occurs according to each theory d. (for c/d above) Explain what the effects of this increase have on the economy as a whole 61. Define the following terms and explain what causes them to occur ...
Money Growth and Inflation
... The money demand curve slopes downward. There are two ways to think about this: o When the price of money rises, the demand for money falls. o When the goods price of money 1/P rises, the dollar ...
... The money demand curve slopes downward. There are two ways to think about this: o When the price of money rises, the demand for money falls. o When the goods price of money 1/P rises, the dollar ...
CHAPTER 7: AGGREGATE DEMAND AND AGGREGATE SUPPLY
... significant influence on aggregate demand and business cycle fluctuations. 3. Keynesians believe that the money wage rate is extremely sticky, especially in the downward direction. A new Keynesian believes that not only is the money wage rate sticky but that prices of goods and services are also sti ...
... significant influence on aggregate demand and business cycle fluctuations. 3. Keynesians believe that the money wage rate is extremely sticky, especially in the downward direction. A new Keynesian believes that not only is the money wage rate sticky but that prices of goods and services are also sti ...
CHAPTER 6: AGGREGATE DEMAND AND AGGREGATE SUPPLY
... significant influence on aggregate demand and business cycle fluctuations. 3. Keynesians believe that the money wage rate is extremely sticky, especially in the downward direction. A new Keynesian believes that not only is the money wage rate sticky but that prices of goods and services are also sti ...
... significant influence on aggregate demand and business cycle fluctuations. 3. Keynesians believe that the money wage rate is extremely sticky, especially in the downward direction. A new Keynesian believes that not only is the money wage rate sticky but that prices of goods and services are also sti ...
Lecture 4: Perfectly divisible goods
... “Eugene Fama from the University of Chicago was praised for demonstrating that share prices are extremely difficult to predict in the short run, with new information quickly incorporated into prices. Robert Shiller, from Yale University, was included for his 1980s discovery that stock prices fluctua ...
... “Eugene Fama from the University of Chicago was praised for demonstrating that share prices are extremely difficult to predict in the short run, with new information quickly incorporated into prices. Robert Shiller, from Yale University, was included for his 1980s discovery that stock prices fluctua ...
AP Week 9 ADAS - Ector County ISD.
... Same Example: • The firm has Total Revenue(TR) of $100 an uses $80 of labor. • Profit = $20. What happens in the LONG-RUN if price level doubles? • Now TR=$200 •In the LONG RUN workers demand higher wages to match prices. So labor costs double to $160 • Profit = $40, but REAL profit is unchanged. If ...
... Same Example: • The firm has Total Revenue(TR) of $100 an uses $80 of labor. • Profit = $20. What happens in the LONG-RUN if price level doubles? • Now TR=$200 •In the LONG RUN workers demand higher wages to match prices. So labor costs double to $160 • Profit = $40, but REAL profit is unchanged. If ...
Cost-push inflation
... (currently 1982 is used). The inflation rate is determined by finding the difference between price levels for the current year and previous given year. The answer is then divided by the given year and then multiplied by 100. To measure the price level, economists select a variety of goods and constr ...
... (currently 1982 is used). The inflation rate is determined by finding the difference between price levels for the current year and previous given year. The answer is then divided by the given year and then multiplied by 100. To measure the price level, economists select a variety of goods and constr ...
AP-Macroeconomics Syllabus
... ability, willingness, and self-discipline to do the amount of reading and additional work required of the AP Macroeconomics course. Type of School: Public Class Size: 30-35 students Total Enrollment: 2085 students (2008 numbers) Ethnic Diversity: 87% Caucasian, 9% African-American, 2% Asian, 1% Hisp ...
... ability, willingness, and self-discipline to do the amount of reading and additional work required of the AP Macroeconomics course. Type of School: Public Class Size: 30-35 students Total Enrollment: 2085 students (2008 numbers) Ethnic Diversity: 87% Caucasian, 9% African-American, 2% Asian, 1% Hisp ...
Demand-Pull Inflation
... spiral. Aggregate demand keeps increases and the process just described repeats indefinitely. ...
... spiral. Aggregate demand keeps increases and the process just described repeats indefinitely. ...
Lecture Two – Edited for use
... the difference between those who would like employment at the current wage rate and those willing and able to take a job. ...
... the difference between those who would like employment at the current wage rate and those willing and able to take a job. ...
time inconsistency of policy
... • Expectations play a crucial role because they influence all sorts of economic behavior • Both households and firms decide to consume and invest based on expectations of future earnings • These expectations depend on many things, including the policies of the government • Thus, when policymakers es ...
... • Expectations play a crucial role because they influence all sorts of economic behavior • Both households and firms decide to consume and invest based on expectations of future earnings • These expectations depend on many things, including the policies of the government • Thus, when policymakers es ...
Textbook
... explain propensity to consume and save differentiate between the APC/S and MPC/S Calculate the propensities to consume and save Apply the propensity to consume/save into determining the multiplier Explain the different effects of the government spending and tax multipliers Identify the d ...
... explain propensity to consume and save differentiate between the APC/S and MPC/S Calculate the propensities to consume and save Apply the propensity to consume/save into determining the multiplier Explain the different effects of the government spending and tax multipliers Identify the d ...
Risk of deflation?
... was concentrated on a low share of items and had no major impact on GDP growth or, where data are available, medium to long-term inflation expectations. While in recent years the case of Switzerland stands out in terms of persistently negative or zero inflation rates, the drivers of these price deve ...
... was concentrated on a low share of items and had no major impact on GDP growth or, where data are available, medium to long-term inflation expectations. While in recent years the case of Switzerland stands out in terms of persistently negative or zero inflation rates, the drivers of these price deve ...
Interest rate
... the amount of metal in the money unit have influenced prices since the earliest records of civilization ...
... the amount of metal in the money unit have influenced prices since the earliest records of civilization ...
IS-LM
... and Macroeconomic Stabilization A) Keynesian business cycle theory (cont.) 5. Procyclical labor productivity and labor hoarding a. As discussed in Sec. 11.1, firms may hoard labor in a recession rather than fire workers, because of the costs of hiring and training new workers b. Such hoarded labor i ...
... and Macroeconomic Stabilization A) Keynesian business cycle theory (cont.) 5. Procyclical labor productivity and labor hoarding a. As discussed in Sec. 11.1, firms may hoard labor in a recession rather than fire workers, because of the costs of hiring and training new workers b. Such hoarded labor i ...
Shifts in Aggregate Demand Page 1 of 2
... is kind of the main axis of the model we are building. The aggregate demand curve shows how total spending in the economy is related to the aggregate price level. The aggregate price level influences spending through three channels: First of all, rising prices shrink the real wealth of consumers and ...
... is kind of the main axis of the model we are building. The aggregate demand curve shows how total spending in the economy is related to the aggregate price level. The aggregate price level influences spending through three channels: First of all, rising prices shrink the real wealth of consumers and ...
Drifting Inflation Targets and Stagflation
... The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we take the algorithm to a New Keynesian dynamic, stochastic general equilibrium (DSGE) model featuring optimizing agents and monetary policy that endogenou ...
... The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we take the algorithm to a New Keynesian dynamic, stochastic general equilibrium (DSGE) model featuring optimizing agents and monetary policy that endogenou ...
philipscurve
... Quantity theorists tend to favor a policy that relies on rules rather than a discretionary policy. The institutional theory of inflation sees the source of inflation in the wage-and-price setting institutions. Institutionalists see the direction of causation going from price increases to money suppl ...
... Quantity theorists tend to favor a policy that relies on rules rather than a discretionary policy. The institutional theory of inflation sees the source of inflation in the wage-and-price setting institutions. Institutionalists see the direction of causation going from price increases to money suppl ...
Основные данные
... conducted on the basis of credit, is to serve as a means of deferred payment. When goods are supplied on credit, the buyer has immediate use of them but does not have to make an immediate payment. The goods can oe paid for three, or perhaps six, months after delivery. In the case of hire purchase co ...
... conducted on the basis of credit, is to serve as a means of deferred payment. When goods are supplied on credit, the buyer has immediate use of them but does not have to make an immediate payment. The goods can oe paid for three, or perhaps six, months after delivery. In the case of hire purchase co ...
