Borrowing, Depreciation, Taxes in Cash Flow Problems
... What do people think Cropper et al surveyed 3000 homes Asked about saving lives in the future Found a 4% discount rate for lives 100 years from now ...
... What do people think Cropper et al surveyed 3000 homes Asked about saving lives in the future Found a 4% discount rate for lives 100 years from now ...
Slide 1
... and firms make decisions optimally, using all available information. This way of modeling expectations was originally proposed by John F. Muth (1961). The idea of rational expectations did serve as a useful caution for macroeconomists who had become excessively optimistic about their ability to mana ...
... and firms make decisions optimally, using all available information. This way of modeling expectations was originally proposed by John F. Muth (1961). The idea of rational expectations did serve as a useful caution for macroeconomists who had become excessively optimistic about their ability to mana ...
The Great Depression in Italy: Trade Restrictions and
... hours worked was caused by movements along the aggregate labor demand, rather than by shocks in the labor demand itself, thus suggesting the presence of some form of real wage rigidity. Some economists (see for example Bernanke and Carey (1996)) have argued that nominal wage rigidities might have ca ...
... hours worked was caused by movements along the aggregate labor demand, rather than by shocks in the labor demand itself, thus suggesting the presence of some form of real wage rigidity. Some economists (see for example Bernanke and Carey (1996)) have argued that nominal wage rigidities might have ca ...
CLEP Principles of Macroeconomics Practice Test
... A cold spell in Florida extensively reduced the orange crop, and, as a result, California oranges commanded a higher price. Which of the following statements best explains the situation? (A) The supply of Florida oranges fell, causing both the supply and price of California oranges to increase. (B) ...
... A cold spell in Florida extensively reduced the orange crop, and, as a result, California oranges commanded a higher price. Which of the following statements best explains the situation? (A) The supply of Florida oranges fell, causing both the supply and price of California oranges to increase. (B) ...
NOTES ON METHODOLOGY Gross domestic product and main
... retirement and depreciation. The first step is to calculate stock value on a specific day (usually at the end of a year). It is done in a way that through expected service life of an asset all positive transactions, gross fixed capital formation in constant prices are being added and consumption of ...
... retirement and depreciation. The first step is to calculate stock value on a specific day (usually at the end of a year). It is done in a way that through expected service life of an asset all positive transactions, gross fixed capital formation in constant prices are being added and consumption of ...
Lecture Two: Macroeconomic Variables
... Final Goods and Services: intermediate goods are not counted. In addition to goods sold to consumers, two types of goods used in the production process are counted: capital goods (business plant and equipment) and inventory investment (net change in inventories of final goods awaiting sale or of mat ...
... Final Goods and Services: intermediate goods are not counted. In addition to goods sold to consumers, two types of goods used in the production process are counted: capital goods (business plant and equipment) and inventory investment (net change in inventories of final goods awaiting sale or of mat ...
Relative Prices And Investment:
... whether or not price changes occur in an environment in which high levels of investment encourage a rapid reallocation of resources and a change in the composition of output. Many countries, for example, have introduced agricultural price reforms which include an increase in prices of cereals and o ...
... whether or not price changes occur in an environment in which high levels of investment encourage a rapid reallocation of resources and a change in the composition of output. Many countries, for example, have introduced agricultural price reforms which include an increase in prices of cereals and o ...
Chapter 17 ppoint
... are both effective in the short run but that neither can reduce the unemployment rate in the long run. Discretionary fiscal policy is considered generally unadvisable, except in special circumstances. 8. There are continuing debates about the appropriate role of monetary policy. Some economists advo ...
... are both effective in the short run but that neither can reduce the unemployment rate in the long run. Discretionary fiscal policy is considered generally unadvisable, except in special circumstances. 8. There are continuing debates about the appropriate role of monetary policy. Some economists advo ...
International Economics, 9e (Husted/Melvin) Chapter 2 Tools of
... A) Demand plays no role in price setting in this model. B) Given autarky prices, GDP is maximized by producing at point E. C) So long as the country is on its production possibility frontier, GDP is maximized. D) Both A and C are true. Answer: B 21) Refer to the figure above. In autarky equilibrium, ...
... A) Demand plays no role in price setting in this model. B) Given autarky prices, GDP is maximized by producing at point E. C) So long as the country is on its production possibility frontier, GDP is maximized. D) Both A and C are true. Answer: B 21) Refer to the figure above. In autarky equilibrium, ...
Government Price Controls and Inflation
... shares are in fact selling at a substantial premium over book value, thus indicating possible excess revenues. d. Realization of Profit. While the rates of a utility are based on the historical and anticipated costs of the company, there is no guarantee that the company will earn any level of profit ...
... shares are in fact selling at a substantial premium over book value, thus indicating possible excess revenues. d. Realization of Profit. While the rates of a utility are based on the historical and anticipated costs of the company, there is no guarantee that the company will earn any level of profit ...
The Political Business Cycle
... are both effective in the short run but that neither can reduce the unemployment rate in the long run. Discretionary fiscal policy is considered generally unadvisable, except in special circumstances. 8. There are continuing debates about the appropriate role of monetary policy. Some economists advo ...
... are both effective in the short run but that neither can reduce the unemployment rate in the long run. Discretionary fiscal policy is considered generally unadvisable, except in special circumstances. 8. There are continuing debates about the appropriate role of monetary policy. Some economists advo ...
Align the Stars review questions
... a. work at jobs which are below their skill level b. are not looking for work c. are actively seeking employment d. are experiencing really bad luck 15. Consumer price index (CPI) measures a. gross domestic product. b. inflation. ...
... a. work at jobs which are below their skill level b. are not looking for work c. are actively seeking employment d. are experiencing really bad luck 15. Consumer price index (CPI) measures a. gross domestic product. b. inflation. ...
Paul Davidson - American Economic Association
... make “real” decision and are not “fooled” by nominal values in their business and consumption decisions. In other words, a fundamental classical theory assumption is that money is neutral. But if money is neutral, financial market crashes in nominal terms should have no effect on the real economy si ...
... make “real” decision and are not “fooled” by nominal values in their business and consumption decisions. In other words, a fundamental classical theory assumption is that money is neutral. But if money is neutral, financial market crashes in nominal terms should have no effect on the real economy si ...
Should the Central Bank Be Concerned About Housing Prices?
... trade-off between stabilizing the inflation rates in the two sectors and cannot replicate the flexible-price equilibrium allocations. In the standard two-sector model, the optimal monetary policy literature suggests that the optimal relative weight of a particular sector’s inflation should depend on the ...
... trade-off between stabilizing the inflation rates in the two sectors and cannot replicate the flexible-price equilibrium allocations. In the standard two-sector model, the optimal monetary policy literature suggests that the optimal relative weight of a particular sector’s inflation should depend on the ...
Econ 103-Discussion Section Week 3 ZHENG ZHANG
... Compared to GDP, CPI includes a different range of goods and services (e.g it doesn’t include investment goods or exported goods BUT includes imported consumption goods). Compared to GDP, CPI is based on a fixed basket of goods and services while the "basket" for GDP deflator is allowed to change wi ...
... Compared to GDP, CPI includes a different range of goods and services (e.g it doesn’t include investment goods or exported goods BUT includes imported consumption goods). Compared to GDP, CPI is based on a fixed basket of goods and services while the "basket" for GDP deflator is allowed to change wi ...
Understanding Crises
... equilibrium outcome from the real-world macroeconomy that operates as an – Optimization-based (solid microeconomic foundations) – Dynamic (the past, the present, and the future) – Stochastic (bombarded by shocks from time to time ...
... equilibrium outcome from the real-world macroeconomy that operates as an – Optimization-based (solid microeconomic foundations) – Dynamic (the past, the present, and the future) – Stochastic (bombarded by shocks from time to time ...
M09_ABEL4987_7E_IM_C09
... e. The price level is higher by the same proportion as the increase in the money supply f. So all real variables (including the real wage) are unchanged, while nominal values (including the nominal wage) have risen proportionately with the change in the money supply 5. Trend money growth and inflati ...
... e. The price level is higher by the same proportion as the increase in the money supply f. So all real variables (including the real wage) are unchanged, while nominal values (including the nominal wage) have risen proportionately with the change in the money supply 5. Trend money growth and inflati ...
NBER ON THE OF DECREASING
... on its part, represents the present discounted value of the dividend stream. In legal terms, the fundamentalis the value of the u.sufruct, while the bubble measures the value of the stock minus its usufruct. For instance, a claim to an apple tree could be split into two assets: a claim to the apple ...
... on its part, represents the present discounted value of the dividend stream. In legal terms, the fundamentalis the value of the u.sufruct, while the bubble measures the value of the stock minus its usufruct. For instance, a claim to an apple tree could be split into two assets: a claim to the apple ...
Debt, Deleveraging, and the Liquidity Trap
... . The key point is that output is no longer an exogenous endowment as in our last example. Instead, if inflation is different in the short run from what those firms that preset prices expected, then output will be above potential. We now are also a bit more specific about how monetary policy is set. ...
... . The key point is that output is no longer an exogenous endowment as in our last example. Instead, if inflation is different in the short run from what those firms that preset prices expected, then output will be above potential. We now are also a bit more specific about how monetary policy is set. ...
Full employment is just that, nobody who is actively seeking a job is
... Now that we know the definition of inflation and how it works, we have to apply to real life by knowing how to measure inflation. The most common way to measure inflation is the Consumer Price Index (CPI), created by the Department of Labor, which is quite a coincidence. You will see why later. The ...
... Now that we know the definition of inflation and how it works, we have to apply to real life by knowing how to measure inflation. The most common way to measure inflation is the Consumer Price Index (CPI), created by the Department of Labor, which is quite a coincidence. You will see why later. The ...
