cyprus international university
... • Explain the slope of the supply and demand for loanable funds • Shift supply and demand curves in a model of the loanable funds market in response to a change in taxes on interest or investment • Shift supply and demand curves in a model of the loanable funds market in response to a change in the ...
... • Explain the slope of the supply and demand for loanable funds • Shift supply and demand curves in a model of the loanable funds market in response to a change in taxes on interest or investment • Shift supply and demand curves in a model of the loanable funds market in response to a change in the ...
Fall 1999 Mid-Term Exam #2
... Some economists believe that marginal tax rates have an important effect on the supply of labor. They argue that higher marginal taxes cause people to want to work less and that lower marginal taxes cause people to want to work more. This argument was featured prominently in the debate over the Reag ...
... Some economists believe that marginal tax rates have an important effect on the supply of labor. They argue that higher marginal taxes cause people to want to work less and that lower marginal taxes cause people to want to work more. This argument was featured prominently in the debate over the Reag ...
The Great Depression
... was not sufficient to cause the collapse of GDP. – The collapse must be explained by the loss of wealth in the stock market and the overbuilding that occurred during the 1920s. – But after 1931, the contraction was caused mainly by monetary factors, particularly the failure of the ...
... was not sufficient to cause the collapse of GDP. – The collapse must be explained by the loss of wealth in the stock market and the overbuilding that occurred during the 1920s. – But after 1931, the contraction was caused mainly by monetary factors, particularly the failure of the ...
Chapter 15 Review Questions
... 2. Suppose that an economy's labor productivity and total worker-hours each grew by 3 percent between year 1 and year 2. We could conclude that this economy's: A) real GDP remained constant. B) capital stock increased by 3 percent. C) production possibilities curve shifted inward. D) long-run aggreg ...
... 2. Suppose that an economy's labor productivity and total worker-hours each grew by 3 percent between year 1 and year 2. We could conclude that this economy's: A) real GDP remained constant. B) capital stock increased by 3 percent. C) production possibilities curve shifted inward. D) long-run aggreg ...
6.02 Understand economic indicators to recognize economic trends
... – Inflation results when the economy has too much demand for available production. – The two causes of inflation: • Demand-pull inflation results when economy-wide shortages are created by increases in aggregate demand. • Cost-push inflation results when an economy-wide shortages are created by decr ...
... – Inflation results when the economy has too much demand for available production. – The two causes of inflation: • Demand-pull inflation results when economy-wide shortages are created by increases in aggregate demand. • Cost-push inflation results when an economy-wide shortages are created by decr ...
Economic Environment for Business (5571)
... Documentation is likewise very important. Un-supported statements or opinions are worth less to the reader, who desires to verify your finding. Complete and specific documentation is mandatory. Also, your references should be to primary sources, except in rare unusual situation. Quoting should be ke ...
... Documentation is likewise very important. Un-supported statements or opinions are worth less to the reader, who desires to verify your finding. Complete and specific documentation is mandatory. Also, your references should be to primary sources, except in rare unusual situation. Quoting should be ke ...
UNIT TWO: INTRODUCTION INTO MACROECONOMICS Part One
... c. Vertical or Classical Phase: at this point prices will continue to rise, but production does not increase. 1. Flexible Wages: as an economy expands wages will rise easily as prices rise. As prices rise, so will wages. Significance: this is the explanation of the vertical supply curve. At this po ...
... c. Vertical or Classical Phase: at this point prices will continue to rise, but production does not increase. 1. Flexible Wages: as an economy expands wages will rise easily as prices rise. As prices rise, so will wages. Significance: this is the explanation of the vertical supply curve. At this po ...
THE CENTRAL BANK AND INFLATION
... We know that any factor that increases demand for goods and services in an economy or that decreases the supply of goods and services can push up the price level. However, if inflation is persistent and rapid, the ultimate source of this is rapid increase in the money supply. To see why this is so r ...
... We know that any factor that increases demand for goods and services in an economy or that decreases the supply of goods and services can push up the price level. However, if inflation is persistent and rapid, the ultimate source of this is rapid increase in the money supply. To see why this is so r ...
Problem Sheet 1
... e. the amount that shows up on your paycheck after taxes f. the amount of goods you can purchase with the wage you get each hour ANSWER: ...
... e. the amount that shows up on your paycheck after taxes f. the amount of goods you can purchase with the wage you get each hour ANSWER: ...
9708 economics - Papacambridge
... For discussion of limitations of C.A. theory For discussion of other explanations of trade ...
... For discussion of limitations of C.A. theory For discussion of other explanations of trade ...
File
... causing prices to decrease. When prices decrease, the per-unit cost of production goes down. When this happens, the AS curve shifts right, restoring full-employment (however, this is a long-term phenomenon) The problem is that politicians want to solve the unemployment problem (in order to get re-el ...
... causing prices to decrease. When prices decrease, the per-unit cost of production goes down. When this happens, the AS curve shifts right, restoring full-employment (however, this is a long-term phenomenon) The problem is that politicians want to solve the unemployment problem (in order to get re-el ...
Slope of the Phillips curve
... neoclassical model. This line of reasoning is consistent with the argument that globalization and competition has reduced inflation bias (Rogoff, 2004, 2005) and should do so in theory (e.g., Romer, 1993, and Lane, 1997, who are cited by Corsetti and Pesenti). I elaborate and attempt a reconciliatio ...
... neoclassical model. This line of reasoning is consistent with the argument that globalization and competition has reduced inflation bias (Rogoff, 2004, 2005) and should do so in theory (e.g., Romer, 1993, and Lane, 1997, who are cited by Corsetti and Pesenti). I elaborate and attempt a reconciliatio ...
Ch25 - 山东大学课程中心
... has affected economists’ thinking about the conduct of economic policy. Although the material covered in this chapter is at the cutting edge of monetary theory, it can be explained in nontechnical terms. The Lucas critique is explained with a straightforward example from the term structure of intere ...
... has affected economists’ thinking about the conduct of economic policy. Although the material covered in this chapter is at the cutting edge of monetary theory, it can be explained in nontechnical terms. The Lucas critique is explained with a straightforward example from the term structure of intere ...
Chapter 30: Money Growth and Inflation Principles of Economics, 7
... If we only have a certain amount to spend and the price and the amount that we are spending on oil goes up, then we have less to spend on everything else and their prices would be expected to fall. i. There probably is little effect on the average level of prices. d. So what causes inflation: that i ...
... If we only have a certain amount to spend and the price and the amount that we are spending on oil goes up, then we have less to spend on everything else and their prices would be expected to fall. i. There probably is little effect on the average level of prices. d. So what causes inflation: that i ...
Modern Principles, Macroeconomics
... 2) Does an analysis of real shocks add to an analysis of aggregate demand shocks? Absolutely. In our view, a key problem with many textbooks is that they make fiscal and monetary policy look too easy. In the standard P,Y model the economy can always be restored to full employment by shifting the rig ...
... 2) Does an analysis of real shocks add to an analysis of aggregate demand shocks? Absolutely. In our view, a key problem with many textbooks is that they make fiscal and monetary policy look too easy. In the standard P,Y model the economy can always be restored to full employment by shifting the rig ...
Chapter 15 Economic Instability
... maintain that inflation can be tamed by increasing the money supply at the same rate that the economy is growing. • Cost-Push Theory--Inflation occurs when producers raise prices in order to meet increased costs. Cost-push inflation can lead to a wage-price spiral — the process by which rising wages ...
... maintain that inflation can be tamed by increasing the money supply at the same rate that the economy is growing. • Cost-Push Theory--Inflation occurs when producers raise prices in order to meet increased costs. Cost-push inflation can lead to a wage-price spiral — the process by which rising wages ...