Macro 3.4- Classical vs. Keynesian
... 1. A change in AD will not change output even in the short run because prices of resources (wages) are very flexible. 2. AS is vertical so AD can’t increase without causing inflation. ...
... 1. A change in AD will not change output even in the short run because prices of resources (wages) are very flexible. 2. AS is vertical so AD can’t increase without causing inflation. ...
1 Miami Dade College ECO 2013 Principles of Macroeconomics
... 28. Automatic stabilizers are: A) aspects of the tax code that stabilize tax revenue over the course of a business cycle. B) laws passed by Congress that stabilize interest rates. C) policies intended to stabilize the price level. D) components of the federal budget that counter the effects of the ...
... 28. Automatic stabilizers are: A) aspects of the tax code that stabilize tax revenue over the course of a business cycle. B) laws passed by Congress that stabilize interest rates. C) policies intended to stabilize the price level. D) components of the federal budget that counter the effects of the ...
CHAPTER 36: CURRENT ISSUES IN MACRO - jb
... aggregate demand for products, firms will increase production based on the extra profit they anticipate because of the increased price at which they can sell products. But under the Rational Expectations Theory, even when the initial stimulus was unanticipated, workers almost instantly recognize pri ...
... aggregate demand for products, firms will increase production based on the extra profit they anticipate because of the increased price at which they can sell products. But under the Rational Expectations Theory, even when the initial stimulus was unanticipated, workers almost instantly recognize pri ...
Chapter 35 - Cengage Learning
... inflation rises, and the short-run Phillips curve shifts to the right. Long-run Phillips curve ...
... inflation rises, and the short-run Phillips curve shifts to the right. Long-run Phillips curve ...
Topic 2.3. Aggregate supply student version
... so a change in raw material prices will NOT shift it, but will cause a movement along the curve. However, a change in raw material prices will shift SRAS. LRAS only shifts if the productive potential of the economy changes. ...
... so a change in raw material prices will NOT shift it, but will cause a movement along the curve. However, a change in raw material prices will shift SRAS. LRAS only shifts if the productive potential of the economy changes. ...
Week 1 - People Pages
... This course provides an intensive introduction to the tools and concepts of macroeconomics. At the end of this course you should understand current debates concerning macroeconomic policies and should be able to anticipate some future macroeconomic problems. Lectures - Since most of the material in ...
... This course provides an intensive introduction to the tools and concepts of macroeconomics. At the end of this course you should understand current debates concerning macroeconomic policies and should be able to anticipate some future macroeconomic problems. Lectures - Since most of the material in ...
lecture notes
... 1. It shows an inverse relationship between price level and real domestic output. 2. The explanation of the inverse relationship is not the same as for demand for a single product, which centered on substitution and income effects. a. Substitution effect doesn’t apply within the scope of domesticall ...
... 1. It shows an inverse relationship between price level and real domestic output. 2. The explanation of the inverse relationship is not the same as for demand for a single product, which centered on substitution and income effects. a. Substitution effect doesn’t apply within the scope of domesticall ...
Kevin P. Hoover THE RATIONAL EXPECTATIONS REVOLUTION: AN ASSESSMENT
... our attention; instead we will examine the implications of those developments in macroecononrucs for which the rational expectations hypothesis was one of the sparks. In the following impressionistic sketch of the history of those developments, I will pay special alleni. ...
... our attention; instead we will examine the implications of those developments in macroecononrucs for which the rational expectations hypothesis was one of the sparks. In the following impressionistic sketch of the history of those developments, I will pay special alleni. ...
A rise in the price of oil imports has resulted in a decrease of short
... a. in the inflationary gap. b. in the recessionary gap. c. at natural real GDP (QN) 27. Congress and the president are directly in charge of: a. monetary policy. b. fiscal policy. c. both of the above. d. none of the above. 28. If the government did not collect taxes but simply paid for its purchase ...
... a. in the inflationary gap. b. in the recessionary gap. c. at natural real GDP (QN) 27. Congress and the president are directly in charge of: a. monetary policy. b. fiscal policy. c. both of the above. d. none of the above. 28. If the government did not collect taxes but simply paid for its purchase ...
The US Dollar is not as many observers state “backed by nothing”
... the past ten years, costing trillions of dollars. Instead of exercising fiscal discipline to pay for their foreign misadventures, money has been printed at alarming rates. The parallels of the US economy with that of Weimar Germany are eerie. The post-war economy was in ruins. They were saddled with ...
... the past ten years, costing trillions of dollars. Instead of exercising fiscal discipline to pay for their foreign misadventures, money has been printed at alarming rates. The parallels of the US economy with that of Weimar Germany are eerie. The post-war economy was in ruins. They were saddled with ...
AD-AS analysis to show external demand and supply
... schedule (green) meets the (total) supply schedule (grey). Then consider what happens when the government requires money to maintain the public sector, it needs to borrow an amount, B, from the markets, its demand is drawn as vertical line upwards from B (in blue). This causes an increase in total d ...
... schedule (green) meets the (total) supply schedule (grey). Then consider what happens when the government requires money to maintain the public sector, it needs to borrow an amount, B, from the markets, its demand is drawn as vertical line upwards from B (in blue). This causes an increase in total d ...
File
... Discuss why, in contrast to the Monetarist/New Classical model, the economy can remain stuck in a deflationary (recessionary) gap in the Keynesian model. Explain, using a diagram, that if AD increases in the vertical section of the AS curve, then there is an inflationary gap. Discuss why, in contras ...
... Discuss why, in contrast to the Monetarist/New Classical model, the economy can remain stuck in a deflationary (recessionary) gap in the Keynesian model. Explain, using a diagram, that if AD increases in the vertical section of the AS curve, then there is an inflationary gap. Discuss why, in contras ...
Reflections on 25 Years of Inflation Targeting
... stability as its primary objective, and thus instituted inflation targeting as a monetary policy regime. To mark this occasion, RBNZ and the International Journal of Central Banking (IJCB) are organising a conference on 1‐3 December 2014 in Wellington, New Zealand: Reflections on 25 Years of Inflati ...
... stability as its primary objective, and thus instituted inflation targeting as a monetary policy regime. To mark this occasion, RBNZ and the International Journal of Central Banking (IJCB) are organising a conference on 1‐3 December 2014 in Wellington, New Zealand: Reflections on 25 Years of Inflati ...
Final Examination Semester 2 / Year 2012
... A) the price level rises higher than it would if the Fed did not pursue policy. B) the price level rises less than it would if the Fed did not pursue policy. C) it does not change the price level. D) it causes inflation. 12) Inflation targeting is a framework for carrying out monetary policy whereby ...
... A) the price level rises higher than it would if the Fed did not pursue policy. B) the price level rises less than it would if the Fed did not pursue policy. C) it does not change the price level. D) it causes inflation. 12) Inflation targeting is a framework for carrying out monetary policy whereby ...
Chapter 5 Introduction to Macroeconomics
... D) All of the above An example of a transfer payment is A) an interest payment on a General Motors' bond. B) the added value of stock from the time it was bought to the time it was sold. C) a Social Security retirement benefit. D) the salary paid to a member of the armed forces. A transfer payment i ...
... D) All of the above An example of a transfer payment is A) an interest payment on a General Motors' bond. B) the added value of stock from the time it was bought to the time it was sold. C) a Social Security retirement benefit. D) the salary paid to a member of the armed forces. A transfer payment i ...
AP Macro syllabus - Henry County Schools
... demand/aggregate supply model, combinations of the policies and their effects, international considerations, government deficits and debts, long-run aggregate supply, demand pull and cost push inflation, the inflationunemployment relationship, expectations Graphs: Aggregate demand/aggregate supply m ...
... demand/aggregate supply model, combinations of the policies and their effects, international considerations, government deficits and debts, long-run aggregate supply, demand pull and cost push inflation, the inflationunemployment relationship, expectations Graphs: Aggregate demand/aggregate supply m ...
inflation
... During a recession: Only prices and wages will stay (prices and wages are sticky) and employment drops. Government spending during a recession will increase employment, GDP, and AD and will not have an impact on price level until full employment is reached. ...
... During a recession: Only prices and wages will stay (prices and wages are sticky) and employment drops. Government spending during a recession will increase employment, GDP, and AD and will not have an impact on price level until full employment is reached. ...
Macroeconomics - University of Oxford
... long-run aggregate supply • The labour market is in equilibrium when inflation is stable. • At the equilibrium unemployment rate, there will be both voluntary unemployment (workers who do not wish to work at the current real wage) and involuntary unemployment (workers who would like to work but can ...
... long-run aggregate supply • The labour market is in equilibrium when inflation is stable. • At the equilibrium unemployment rate, there will be both voluntary unemployment (workers who do not wish to work at the current real wage) and involuntary unemployment (workers who would like to work but can ...
Syllabus - Scott County Schools
... Unemployment-inflation relationship and the Phillips Curve The long-run Phillips Curve (graph) B. Economic growth Production possibilities analysis of growth (graph) U.S. Economic growth rates Accounting for growth C. Disputes over macro theory and policy Classical view vs. Keynesian vie ...
... Unemployment-inflation relationship and the Phillips Curve The long-run Phillips Curve (graph) B. Economic growth Production possibilities analysis of growth (graph) U.S. Economic growth rates Accounting for growth C. Disputes over macro theory and policy Classical view vs. Keynesian vie ...
Outline Notes
... Trade policies, union activity, tax policies, health care laws, productivity advancements There is also a short run AS curve. What causes the short run AS curve to shift? Temporary/ one time changes. Wage increases, investment tax credits, oil price changes In an aggregate demand / aggregate supply ...
... Trade policies, union activity, tax policies, health care laws, productivity advancements There is also a short run AS curve. What causes the short run AS curve to shift? Temporary/ one time changes. Wage increases, investment tax credits, oil price changes In an aggregate demand / aggregate supply ...