Level 2 Economics (91222) 2015
... Surveys show 13% of tourists say the Hobbit films influenced their decision to travel to New Zealand. The surge in spending by tourists from premium markets such as Germany, the US, and the UK can be explained by film tourism. Source (adapted): The New Zealand Herald, 7 January 2015, p. A15. ...
... Surveys show 13% of tourists say the Hobbit films influenced their decision to travel to New Zealand. The surge in spending by tourists from premium markets such as Germany, the US, and the UK can be explained by film tourism. Source (adapted): The New Zealand Herald, 7 January 2015, p. A15. ...
Policy - QC Economics
... in such a way as to bring about continued increases in aggregate demand is the money supply. • Money Supply is the only factor that can continually increase without causing a reduction in one of the four components of total expenditures: consumption, investment, government purchases, or net exports. ...
... in such a way as to bring about continued increases in aggregate demand is the money supply. • Money Supply is the only factor that can continually increase without causing a reduction in one of the four components of total expenditures: consumption, investment, government purchases, or net exports. ...
Mankiw 5/e Chapter 13: Aggregate Supply - CERGE-EI
... Supply of each good depends on its relative price: the nominal price of the good divided by the overall price level. Supplier doesn’t know price level at the time she makes her production decision, so uses the expected price level, P e. Suppose P rises but P e does not. Then supplier thinks her rela ...
... Supply of each good depends on its relative price: the nominal price of the good divided by the overall price level. Supplier doesn’t know price level at the time she makes her production decision, so uses the expected price level, P e. Suppose P rises but P e does not. Then supplier thinks her rela ...
The change of paradigm of Milton Friedman
... Federal Reserve and European Central Bank do target interest rates policy and care pretty much about it. So far, monetarism doesn’t accept that external factors to money supply may be the cuase inflation. It is all about the quantity of money per unit of output what shapes the inflation rate, and a ...
... Federal Reserve and European Central Bank do target interest rates policy and care pretty much about it. So far, monetarism doesn’t accept that external factors to money supply may be the cuase inflation. It is all about the quantity of money per unit of output what shapes the inflation rate, and a ...
Y - The University of Chicago Booth School of Business
... expected to pay a certain real rate and when inflation is higher and the nominal rate is fixed, the real rate they pay is lower (in terms of lost purchasing power). Key Insight: If the economy experiences unexpected deflation, the opposite happens-borrowers are paying more in terms of lost real purc ...
... expected to pay a certain real rate and when inflation is higher and the nominal rate is fixed, the real rate they pay is lower (in terms of lost purchasing power). Key Insight: If the economy experiences unexpected deflation, the opposite happens-borrowers are paying more in terms of lost real purc ...
Ch 12 Notes
... (ii) Suppose the price of imported gasoline rises. This will shift the ________ curve from _______ to __________. (iii) The P level _____________ from ______________ to ______________. (iv) The short run actual Y ____________ from ____________ to __________. (v) Output gap= ___________________, whic ...
... (ii) Suppose the price of imported gasoline rises. This will shift the ________ curve from _______ to __________. (iii) The P level _____________ from ______________ to ______________. (iv) The short run actual Y ____________ from ____________ to __________. (v) Output gap= ___________________, whic ...
INFLATION: ITS CAUSE AND CURE - Imprimis
... etwe"err -lie saver ana the investor. In this way , we are today planting seeds which will yield lower economic growth rates for a decade. The diversion of funds into land and commodity speculation, while it is an effective inflation hedge, does not promote the economic growth of the country or grow ...
... etwe"err -lie saver ana the investor. In this way , we are today planting seeds which will yield lower economic growth rates for a decade. The diversion of funds into land and commodity speculation, while it is an effective inflation hedge, does not promote the economic growth of the country or grow ...
Topic6 - Booth School of Business
... expected to pay a certain real rate and when inflation is higher and the nominal rate is fixed, the real rate they pay is lower (in terms of lost purchasing power). Key Insight: If the economy experiences unexpected deflation, the opposite happens-borrowers are paying more in terms of lost real purc ...
... expected to pay a certain real rate and when inflation is higher and the nominal rate is fixed, the real rate they pay is lower (in terms of lost purchasing power). Key Insight: If the economy experiences unexpected deflation, the opposite happens-borrowers are paying more in terms of lost real purc ...
AS Curve
... Region. At this level of GDP, output can be increased with little increase in costs. An Intermediate Region, where the curve slopes up at an angle. At this level of GDP, output can be increased, but prices will rise. The UK economy is usually assumed to be in this region. A vertical curve called ...
... Region. At this level of GDP, output can be increased with little increase in costs. An Intermediate Region, where the curve slopes up at an angle. At this level of GDP, output can be increased, but prices will rise. The UK economy is usually assumed to be in this region. A vertical curve called ...
inflation rate
... Over the medium to long run - inflation is a monetary phenomenon entirely determined by monetary policy Over shorter horizons various macroeconomic shocks, including variations in economic activity or production costs, will temporarily move inflation away from the central bank’s inflation objectiv ...
... Over the medium to long run - inflation is a monetary phenomenon entirely determined by monetary policy Over shorter horizons various macroeconomic shocks, including variations in economic activity or production costs, will temporarily move inflation away from the central bank’s inflation objectiv ...
Macroeconomic Theories of Inflation
... Thus, the Central Bank can affect the real output and employment only if it can find a way to create a “price surprise”. Otherwise, the “forward-looking” expectation adjustments of economic agents will ensure that their preannounced policy fails. Similarly, if a policymaker announces a disinflation ...
... Thus, the Central Bank can affect the real output and employment only if it can find a way to create a “price surprise”. Otherwise, the “forward-looking” expectation adjustments of economic agents will ensure that their preannounced policy fails. Similarly, if a policymaker announces a disinflation ...
Fed Could Allow Higher Inflation as Interest Rates Remain Low
... First, the Fed could maintain its 2% inflation target but allow inflation to rise to 3% when the Fed’s interest rate is above zero to compensate for periods of lower inflation. That would give the economy some additional time to expand before the Fed raises rates and stifles growth. The authors, tho ...
... First, the Fed could maintain its 2% inflation target but allow inflation to rise to 3% when the Fed’s interest rate is above zero to compensate for periods of lower inflation. That would give the economy some additional time to expand before the Fed raises rates and stifles growth. The authors, tho ...
Introduction to Macroeconomics
... Figure 1.8 shows the business cycle with its economic activities and movements along the long-term growth trend line. Recession will occur when the previous economic expansion has reached its peak and has fallen into a pit, which is the trough. The economy will then begin to boom again after experie ...
... Figure 1.8 shows the business cycle with its economic activities and movements along the long-term growth trend line. Recession will occur when the previous economic expansion has reached its peak and has fallen into a pit, which is the trough. The economy will then begin to boom again after experie ...
aggregate-demand curve
... • A decrease in the U.S. price level causes U.S. interest rates to fall • As a result, the value of the dollar decreases. • As a result, US goods become cheaper relative to foreign goods. • This makes U.S. net exports increase. • The increase in net export spending means a larger quantity of goods a ...
... • A decrease in the U.S. price level causes U.S. interest rates to fall • As a result, the value of the dollar decreases. • As a result, US goods become cheaper relative to foreign goods. • This makes U.S. net exports increase. • The increase in net export spending means a larger quantity of goods a ...
lecture notes
... then decline. 2. Tax rates above or below this maximum rate will cause a decrease in tax revenue. 3. Laffer argued that tax rates were above the optimal level and by lowering tax rates government could increase the tax revenue collected. 4. The lower tax rates would trigger an expansion of real outp ...
... then decline. 2. Tax rates above or below this maximum rate will cause a decrease in tax revenue. 3. Laffer argued that tax rates were above the optimal level and by lowering tax rates government could increase the tax revenue collected. 4. The lower tax rates would trigger an expansion of real outp ...
Document
... because nominal wages cannot fully adjust to changes in the money supply. For example, if the money supply increases 50% in the new-Keynesian model, nominal wages cannot increase by 50% because of nominal rigidity. As a result, the real wage will change which will affect unemployment, real interest ...
... because nominal wages cannot fully adjust to changes in the money supply. For example, if the money supply increases 50% in the new-Keynesian model, nominal wages cannot increase by 50% because of nominal rigidity. As a result, the real wage will change which will affect unemployment, real interest ...
Practice Test 1 - Dasha Safonova
... B. is the result of consumer expenditures exceeding available output. C. is the result of the Fed increasing the quantity of money. D. is the result of a rise in the price of a key resource. 10. If demand pull inflation occurs when the economy is already at potential GDP, then following the initial ...
... B. is the result of consumer expenditures exceeding available output. C. is the result of the Fed increasing the quantity of money. D. is the result of a rise in the price of a key resource. 10. If demand pull inflation occurs when the economy is already at potential GDP, then following the initial ...
