DEFICIT
... an increased budget deficit changes the sectoral balance of demand. A reduction of taxes or an increase in transfer payments raises the demand for consumer goods. At the same time, the rise in the interest rates that results from the deficit causes a fall in the demand for investment goods. In the o ...
... an increased budget deficit changes the sectoral balance of demand. A reduction of taxes or an increase in transfer payments raises the demand for consumer goods. At the same time, the rise in the interest rates that results from the deficit causes a fall in the demand for investment goods. In the o ...
Employment, Growth, Inflation
... 1.4.1 The Ease of Doing Business Survey 1.4.2 Examining the Links between Output and Ease of Doing Business 1.5 The Labour Chain and Potential GDP Growth 1.6 Choosing the Right Output Measure for Macroeconomic Analysis 1.6.1 Fluctuations around Potential GDP: A Hypothetical Case 1.6.2 Classifying Bu ...
... 1.4.1 The Ease of Doing Business Survey 1.4.2 Examining the Links between Output and Ease of Doing Business 1.5 The Labour Chain and Potential GDP Growth 1.6 Choosing the Right Output Measure for Macroeconomic Analysis 1.6.1 Fluctuations around Potential GDP: A Hypothetical Case 1.6.2 Classifying Bu ...
Inflation
... The Consumer Price Index The collection of goods and services used in the calculation of the CPI is called the market basket. The market basket represents a sampling of the items that consumers buy that make up a significant portion of their budget. There are 200 specific items that make up the CPI. ...
... The Consumer Price Index The collection of goods and services used in the calculation of the CPI is called the market basket. The market basket represents a sampling of the items that consumers buy that make up a significant portion of their budget. There are 200 specific items that make up the CPI. ...
AP review wk 3
... – A high inflation rate forces firms to change prices more often than they would if the price level was more or less stable. – The changing of a listed price has a “real” cost. ...
... – A high inflation rate forces firms to change prices more often than they would if the price level was more or less stable. – The changing of a listed price has a “real” cost. ...
Utility and Preference
... the basic economic problem • The price system is used to solve the economic problem in a free market economy. • What things will be produced is determined by the dollar vote of consumers every day in their decision to purchase this good and not that good. ...
... the basic economic problem • The price system is used to solve the economic problem in a free market economy. • What things will be produced is determined by the dollar vote of consumers every day in their decision to purchase this good and not that good. ...
ECON 100 Tutorial: Week 21
... • “Clearly we do not mean by ‘involuntary’ unemployment the mere existence of an unexhausted capacity to work. An eight-hour day does not constitute unemployment because it is not beyond human capacity to work ten hours. Nor should we regard as ‘involuntary’ unemployment the withdrawal of their labo ...
... • “Clearly we do not mean by ‘involuntary’ unemployment the mere existence of an unexhausted capacity to work. An eight-hour day does not constitute unemployment because it is not beyond human capacity to work ten hours. Nor should we regard as ‘involuntary’ unemployment the withdrawal of their labo ...
What have we Learned
... expansion during the current crisis. In spite of his image as a practical Keynesian, Roosevelt also displayed concern for fiscal discipline. As a consequence, during the second part of the thirties the budget deficit shrank, leading to a temporary recession in 1938. Table 1 shows the deficit to GDP ...
... expansion during the current crisis. In spite of his image as a practical Keynesian, Roosevelt also displayed concern for fiscal discipline. As a consequence, during the second part of the thirties the budget deficit shrank, leading to a temporary recession in 1938. Table 1 shows the deficit to GDP ...
2016 Economics Advanced Higher Finalised Marking
... Full descriptions of the following points will be credited:Inflationary pressures: Lack of spare capacity leads to upward pressure on inflation because shortages of labour/resources drives wages and costs higher (1) which can lead to higher prices if passed on.(1) Rising real wages leads to upwa ...
... Full descriptions of the following points will be credited:Inflationary pressures: Lack of spare capacity leads to upward pressure on inflation because shortages of labour/resources drives wages and costs higher (1) which can lead to higher prices if passed on.(1) Rising real wages leads to upwa ...
A rise in the price of oil imports has resulted in a decrease of short
... 9. The demand for money and the velocity of money always: a. go in opposite ways, so if one rises, the other falls. b. move the same way, so if one rises, the other also rises. c. have no stable relationship, so sometimes answer a is correct, and sometimes b is correct. 10. What is the real rate of ...
... 9. The demand for money and the velocity of money always: a. go in opposite ways, so if one rises, the other falls. b. move the same way, so if one rises, the other also rises. c. have no stable relationship, so sometimes answer a is correct, and sometimes b is correct. 10. What is the real rate of ...
Technological Change and Price Effects in Agriculture: Conceptual
... The importance of technological advance to economic growth has become accepted fact. Yet the answers to questions of who adopts new technologies, how quickly, and at what cost to society remain elusive. While these issues are not unique throughout history, the advent of biological and chemical techn ...
... The importance of technological advance to economic growth has become accepted fact. Yet the answers to questions of who adopts new technologies, how quickly, and at what cost to society remain elusive. While these issues are not unique throughout history, the advent of biological and chemical techn ...
feedback-rule policy - Iowa State University Department of Economics
... A discretionary policy responds to the state of the economy in a possibly unique way that uses all the information available, including perceived lessons from past “mistakes.” An everyday discretionary policy occurs at an unmarked intersection--each driver uses discretion in deciding whether to stop ...
... A discretionary policy responds to the state of the economy in a possibly unique way that uses all the information available, including perceived lessons from past “mistakes.” An everyday discretionary policy occurs at an unmarked intersection--each driver uses discretion in deciding whether to stop ...
AD Curve 2
... Bruce hinted that there will be questions on AD-AS theory as well as on its application. There was a question on AD curve theory in 2002 (why does it slope downwards) and one on its application (what happens if people save more?). In 2001, the question was what happens if income tax goes up?, with a ...
... Bruce hinted that there will be questions on AD-AS theory as well as on its application. There was a question on AD curve theory in 2002 (why does it slope downwards) and one on its application (what happens if people save more?). In 2001, the question was what happens if income tax goes up?, with a ...
UT Stock Market & the Macroeconomy
... • This is one reason why stock prices are so carefully watched by policy makers, and matter for everyone – Whether they own stocks themselves or not ...
... • This is one reason why stock prices are so carefully watched by policy makers, and matter for everyone – Whether they own stocks themselves or not ...
FOE September 2015 Exam Paper – Final
... b) If one adds the government and international trade sectors to the diagram above identify the different flows of income or economic activity that would need to be added to the diagram. ...
... b) If one adds the government and international trade sectors to the diagram above identify the different flows of income or economic activity that would need to be added to the diagram. ...
4: Inflation effect on capital budgeting decisions
... materials. This could be "passed on" to consumers, or it could be absorbed by profits, or offset by increasing productivity. In India and the United States, an earlier version of the PPI was called the Wholesale Price Index. Commodity price indices, which measure the price of a selection of commodit ...
... materials. This could be "passed on" to consumers, or it could be absorbed by profits, or offset by increasing productivity. In India and the United States, an earlier version of the PPI was called the Wholesale Price Index. Commodity price indices, which measure the price of a selection of commodit ...
NBER WORKING PAPER SERIES THE THEORY AND THE FACTS
... wait to get his car filled up. In fact, for many items he commonly purchases, the price, once set, stays fixed for a while. Newspaper articles often describe how some companies have difficulty ...
... wait to get his car filled up. In fact, for many items he commonly purchases, the price, once set, stays fixed for a while. Newspaper articles often describe how some companies have difficulty ...
Comments on: "The Roles of Comovement and Inventory Investment
... residential construction, or inflation supply shocks, they “import unexplained” into their analytical structure at least half of the decline in output volatility All their metrics of reduced volatility are as a percentage of M&T variance, not total economy variance. By the way, why does data analysi ...
... residential construction, or inflation supply shocks, they “import unexplained” into their analytical structure at least half of the decline in output volatility All their metrics of reduced volatility are as a percentage of M&T variance, not total economy variance. By the way, why does data analysi ...
Shifts in Aggregate Demand Page 1 of 2
... The first answer is an increase in autonomous spending. Autonomous means stuff that is by itself, unto itself, not caused by something else. If consumers decided that they just wanted to spend more money for the heck of it, or were feeling rich or confident about the future of the economy, then an i ...
... The first answer is an increase in autonomous spending. Autonomous means stuff that is by itself, unto itself, not caused by something else. If consumers decided that they just wanted to spend more money for the heck of it, or were feeling rich or confident about the future of the economy, then an i ...
Business cycle fluctuations – Part I
... • A core macroeconomic model is that of aggregate supply and demand with dynamically optimizing agents and firms. • Here offers a ‘simplistic & static’ view of the business cycle in terms of fluctuations in supply and demand. •Health warning : this is a very simple model which immediately provides s ...
... • A core macroeconomic model is that of aggregate supply and demand with dynamically optimizing agents and firms. • Here offers a ‘simplistic & static’ view of the business cycle in terms of fluctuations in supply and demand. •Health warning : this is a very simple model which immediately provides s ...
Alberta`s Recession Not Quite Like The Others
... annual decline in real GDP of around 6.5%, which is more than twice that of the average of past downturns. • … and relatively long in terms of duration – the recessions suffered in 1986, 1991 and 2009 amounted to roughly one year of contraction in both output and employment. The two years of contra ...
... annual decline in real GDP of around 6.5%, which is more than twice that of the average of past downturns. • … and relatively long in terms of duration – the recessions suffered in 1986, 1991 and 2009 amounted to roughly one year of contraction in both output and employment. The two years of contra ...
Forecast Surveys
... • Persistent forecast errors in 1970s and 1990s • Those periods require explanation: failure to recognize impact of faster money growth; errors in evaluating natural rate of unemployment and rate of potential GDP growth ...
... • Persistent forecast errors in 1970s and 1990s • Those periods require explanation: failure to recognize impact of faster money growth; errors in evaluating natural rate of unemployment and rate of potential GDP growth ...
Who`s Afraid of a Big Bad Oil Shock? (Brookings Papers on
... for the first year and by 0.04 percentage point per year over a ten-year horizon. This is about one-tenth the productivity growth impacts shown in table 1. These calculations suggest the need to look elsewhere to understand the association between oil-price changes and output reactions. A more likel ...
... for the first year and by 0.04 percentage point per year over a ten-year horizon. This is about one-tenth the productivity growth impacts shown in table 1. These calculations suggest the need to look elsewhere to understand the association between oil-price changes and output reactions. A more likel ...