Macroeconomic Stabilization Policy
... optimize choice at each point in time rather than establish a long term policy. • For example, they might declare π* = 2%, wait until contracting is done and then implement policy that is more expansionary • If π expectations are backward looking, it doesn’t matter. • If π expectations are forward l ...
... optimize choice at each point in time rather than establish a long term policy. • For example, they might declare π* = 2%, wait until contracting is done and then implement policy that is more expansionary • If π expectations are backward looking, it doesn’t matter. • If π expectations are forward l ...
English version -2017_Business_Macro_1
... a given period: a flow variable. 1 year or 1 quarter (the shortest interval of measurement). Sales of used goods produced before the current period (transfer of ownership between traders) and inventory (counted when it was produced) are not included. final goods (↔intermediate goods)values of goods ...
... a given period: a flow variable. 1 year or 1 quarter (the shortest interval of measurement). Sales of used goods produced before the current period (transfer of ownership between traders) and inventory (counted when it was produced) are not included. final goods (↔intermediate goods)values of goods ...
Week 5 In Class CPI GDP
... ____ 23. If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate is a. -2 percent. b. 0.4 percent. c. 2 percent. d. 12 percent. ____ 24. Maxine deposits $100 in a bank account that pays an annual interest rate of 20%. A year later, after Maxine has ...
... ____ 23. If the nominal interest rate is 5 percent and the real interest rate is 7 percent, then the inflation rate is a. -2 percent. b. 0.4 percent. c. 2 percent. d. 12 percent. ____ 24. Maxine deposits $100 in a bank account that pays an annual interest rate of 20%. A year later, after Maxine has ...
economics - basics economics studies
... 59. In the case of luxury goods, the income elasticity of demand will be: A. Less than unity B. Unity C. More than unity D. All the above 60. Income elasticity is positive, but less than unity in the case of: A. Necessity B. Luxury C. Inferior D. Substitutes 61. In drawing an individual demand curve ...
... 59. In the case of luxury goods, the income elasticity of demand will be: A. Less than unity B. Unity C. More than unity D. All the above 60. Income elasticity is positive, but less than unity in the case of: A. Necessity B. Luxury C. Inferior D. Substitutes 61. In drawing an individual demand curve ...
MACROECONOMICS AND THE GLOBAL BUSINESS ENVIRONMENT
... • If expectations < reality, then W/P low, unemployment is low •If expectations > reality, then W/P high, unemployment is high ...
... • If expectations < reality, then W/P low, unemployment is low •If expectations > reality, then W/P high, unemployment is high ...
Test #3
... Successful interest-rate targeting, in comparison with monetary targeting, increases the impact on aggregate demand of investment, net exports, fiscal deficits and other disturbances in the commodity markets while eliminating the impact of shocks emanating from the financial sectors. Interest-rate t ...
... Successful interest-rate targeting, in comparison with monetary targeting, increases the impact on aggregate demand of investment, net exports, fiscal deficits and other disturbances in the commodity markets while eliminating the impact of shocks emanating from the financial sectors. Interest-rate t ...
Chapter 5
... 2. What is a value-adding firm? Value-subtracting firm? Which type is rewarded and which type is punished by a market economy? In a socialist economy, how does this change? What are the consequences of this difference? 3. Which of the three components of consumer expenditures--durables, nondurables, ...
... 2. What is a value-adding firm? Value-subtracting firm? Which type is rewarded and which type is punished by a market economy? In a socialist economy, how does this change? What are the consequences of this difference? 3. Which of the three components of consumer expenditures--durables, nondurables, ...
Anti-Inflationary Policies in a Democratic Free Market Society Barry Bosworth
... but the magnitudes of the settlements increased during that period. Even adjusting for underlying factors, such as inflation and others that affected those wage increases, unemployment clearly had very little impact on large union wage negotiations. They followed and still follow a life and a patter ...
... but the magnitudes of the settlements increased during that period. Even adjusting for underlying factors, such as inflation and others that affected those wage increases, unemployment clearly had very little impact on large union wage negotiations. They followed and still follow a life and a patter ...
SRAS
... Example: The U.S. Economy Experiences a Decline in Aggregate Supply • The Federal Reserve found that during 2009, the U.S. economy’s productive capacity dropped by 1 percent—the largest percentage decrease since 1967. • The decrease resulted primarily from a failure of investment in new capital to ...
... Example: The U.S. Economy Experiences a Decline in Aggregate Supply • The Federal Reserve found that during 2009, the U.S. economy’s productive capacity dropped by 1 percent—the largest percentage decrease since 1967. • The decrease resulted primarily from a failure of investment in new capital to ...
+ I(Y,i)
... Construction of the AD curve The preceding results suggest when the goods market and the financial markets are in equilibrium, Y is: •An increasing function of Ms/P •An increasing function of G •A decreasing function of T Therefore we have AD curve:Y=Y(Ms/P, G, T) ...
... Construction of the AD curve The preceding results suggest when the goods market and the financial markets are in equilibrium, Y is: •An increasing function of Ms/P •An increasing function of G •A decreasing function of T Therefore we have AD curve:Y=Y(Ms/P, G, T) ...
Monetary Economics and the European Union Lecture: Week 1
... (ii) The money supply will vary over time in response to changes in the availability of the commodity. Example: Under a gold standard, the discovery of a new gold mine causes a loosening of monetary policy. This is because the new discovery increases the supply of gold, and hence pushes down its pr ...
... (ii) The money supply will vary over time in response to changes in the availability of the commodity. Example: Under a gold standard, the discovery of a new gold mine causes a loosening of monetary policy. This is because the new discovery increases the supply of gold, and hence pushes down its pr ...
AP ch26 pt
... 105. For a person to keep his real income steady at a certain level from one year to the next, his nominal income must: A. Rise if the price index falls B. Stay the same as the price index rises C. Fall if the price index rises D. Rise as fast as the price index 107. Unanticipated inflation arbitra ...
... 105. For a person to keep his real income steady at a certain level from one year to the next, his nominal income must: A. Rise if the price index falls B. Stay the same as the price index rises C. Fall if the price index rises D. Rise as fast as the price index 107. Unanticipated inflation arbitra ...
Solutions to Problems
... 1b. The significance of a slowdown in the rate of technological change is it slows down increases in the productivity of labour and capital with smaller consequent increases in longrun and short-run aggregate supply (smaller movement to the right the LAS and SAS curves). This is a movement along th ...
... 1b. The significance of a slowdown in the rate of technological change is it slows down increases in the productivity of labour and capital with smaller consequent increases in longrun and short-run aggregate supply (smaller movement to the right the LAS and SAS curves). This is a movement along th ...
Economic Growth and GDP
... GDP 2000=(10pizzasX$10/pizza) +(15piesX$5/pie)=$175 GDP 2004=(20pizzasX$12/pizza) + (30piesX$6/pie)=$420 Looking at these two GDPs what would you conclude? BUT Looking closely you can see the quantities produced of pizzas and pies in 2004 are twice that produced in 2000 If eco activity exactly doubl ...
... GDP 2000=(10pizzasX$10/pizza) +(15piesX$5/pie)=$175 GDP 2004=(20pizzasX$12/pizza) + (30piesX$6/pie)=$420 Looking at these two GDPs what would you conclude? BUT Looking closely you can see the quantities produced of pizzas and pies in 2004 are twice that produced in 2000 If eco activity exactly doubl ...
Understanding the Impacts of Deflation
... below 5 percent, even though growth was nominal, due to more aggressive government guarantees of employment. • Another difference is the contagion to the global economy. The Great Depression affected the global economy, while Japan’s “lost decades” had less of an effect on the global economy. Defla ...
... below 5 percent, even though growth was nominal, due to more aggressive government guarantees of employment. • Another difference is the contagion to the global economy. The Great Depression affected the global economy, while Japan’s “lost decades” had less of an effect on the global economy. Defla ...
Lecture 3a
... • The value of money can be measured by the change in price levels. Inflation is an increase in the general price level over time. The value of money can be measured by inflation. ...
... • The value of money can be measured by the change in price levels. Inflation is an increase in the general price level over time. The value of money can be measured by inflation. ...
FRBSF E L CONOMIC ETTER
... The increase in aggregate demand for the economy’s output through these different channels leads firms to raise production and employment, which in turn increases business spending on capital goods even further by making greater demands on existing factory capacity. It also boosts consumption furthe ...
... The increase in aggregate demand for the economy’s output through these different channels leads firms to raise production and employment, which in turn increases business spending on capital goods even further by making greater demands on existing factory capacity. It also boosts consumption furthe ...
Intra-Country Validation
... Compare per capita real expenditures for each BH Variations in per capita real expenditures for each basic heading between economies in each cluster ...
... Compare per capita real expenditures for each BH Variations in per capita real expenditures for each basic heading between economies in each cluster ...
