Table 1 lists the production possibilities curves for two - Rose
... E. the same as it was initially and market output will be equal to the original output. 26. Figure 16 shows a perfectly competitive, increasing-cost industry in short-run equilibrium where curve AC is the shortrun average total cost curve. Which of the following will happen in the long run? A. Firms ...
... E. the same as it was initially and market output will be equal to the original output. 26. Figure 16 shows a perfectly competitive, increasing-cost industry in short-run equilibrium where curve AC is the shortrun average total cost curve. Which of the following will happen in the long run? A. Firms ...
Chapter 53: Causes and consequences of inflation and
... One might say that malign deflation cures inflation something like lung cancer cures smoking and I dare say that most economists would agree that deflation is a far greater threat to economic stability and growth than inflation. The self-reinforcing loop – known as a deflationary spiral – created by ...
... One might say that malign deflation cures inflation something like lung cancer cures smoking and I dare say that most economists would agree that deflation is a far greater threat to economic stability and growth than inflation. The self-reinforcing loop – known as a deflationary spiral – created by ...
ECON102 2015-16 Spring Midterm Exam Answer Key
... Please mark your answers on both the exam paper and the optic sheet. 1. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study? a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third ...
... Please mark your answers on both the exam paper and the optic sheet. 1. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study? a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third ...
NBER WORKING PAPER SERIES MONEY, IMPERFECT INFORMATION AND ECONOMIC FLUCTUATIONS Bruce Greenwald
... the economy which systematically results in every boom turning into a recession, and every recession giving rise to the next boom; or whether the economy is simply continously being buffetted by shocks, the cummulative effects of which result in economic fluctuations. 14 There are also a host of lab ...
... the economy which systematically results in every boom turning into a recession, and every recession giving rise to the next boom; or whether the economy is simply continously being buffetted by shocks, the cummulative effects of which result in economic fluctuations. 14 There are also a host of lab ...
Power Point
... • Sustained increases in the growth of A are the only thing that can cause a sustained growth in output per person. • Empirically, when a country exhibits faster Y/N growth ….. 33% typically comes from growth in K/N 67% typically comes from growth in A (where N = employment (not hours) - limited dat ...
... • Sustained increases in the growth of A are the only thing that can cause a sustained growth in output per person. • Empirically, when a country exhibits faster Y/N growth ….. 33% typically comes from growth in K/N 67% typically comes from growth in A (where N = employment (not hours) - limited dat ...
Q 1 A fall in the value of the dollar against other currencies makes
... will now be less than GDP, and inventories will accumulate. So unplanned inventory investment will be positive. b. A rise in the expected growth rate of real GDP will lead firms to increase their planned investment spending. Planned aggregate spending will now exceed GDP. Sales will exceed firms’ ex ...
... will now be less than GDP, and inventories will accumulate. So unplanned inventory investment will be positive. b. A rise in the expected growth rate of real GDP will lead firms to increase their planned investment spending. Planned aggregate spending will now exceed GDP. Sales will exceed firms’ ex ...
33 AGGREGATE DEMAND AND AGGREGATE SUPPLY
... 3. The aggregate-demand curve is downward sloping because: (1) a decrease in the price level makes consumers feel wealthier, which in turn encourages them to spend more, so there is a larger quantity of goods and services demanded; (2) a lower price level reduces the interest rate, encouraging great ...
... 3. The aggregate-demand curve is downward sloping because: (1) a decrease in the price level makes consumers feel wealthier, which in turn encourages them to spend more, so there is a larger quantity of goods and services demanded; (2) a lower price level reduces the interest rate, encouraging great ...
Phillips Curve
... occurs and real output increases, thus, it shifts left along the Phillips Curve. (increase in inflation but decrease in unemployment rate) However, when AS shifts to the left due to decrease in productivity, and increase is input prices, the Phillips curve shift rightwards restoring to the natural r ...
... occurs and real output increases, thus, it shifts left along the Phillips Curve. (increase in inflation but decrease in unemployment rate) However, when AS shifts to the left due to decrease in productivity, and increase is input prices, the Phillips curve shift rightwards restoring to the natural r ...
14.02 Principles of Macroeconomics Problem Set 3 Fall 2005 ***Solution***
... (see page 131 of the textbook). The nominal equilibrium wage increases if workers bargaining power goes up, but the equilibrium price level also increases (the increase in bargaining power would be reflected in an increase in z, which shifts the AS curve up and decreases the natural level of output) ...
... (see page 131 of the textbook). The nominal equilibrium wage increases if workers bargaining power goes up, but the equilibrium price level also increases (the increase in bargaining power would be reflected in an increase in z, which shifts the AS curve up and decreases the natural level of output) ...
CH 10 - REVIEW QUESTIONS 1. The short
... C) 5 percent in the short run but will return to its natural rate in the long run. D) 2.5 percent in the short run but will return to its natural rate in the long run. 16. Long-run growth in real GDP is determined primarily by ______, while short-run movements in real GDP are associated with ______. ...
... C) 5 percent in the short run but will return to its natural rate in the long run. D) 2.5 percent in the short run but will return to its natural rate in the long run. 16. Long-run growth in real GDP is determined primarily by ______, while short-run movements in real GDP are associated with ______. ...
Mankiw 6e PowerPoints
... supplies of capital, labor technology. Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. ...
... supplies of capital, labor technology. Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY POLICY WITH COLLATERALIZED
... turn, the increased demand for borrowing further stimulates the demand for durables and its relative price, inducing a cycle effect that further boosts (non-durable) spending. In an efficient equilibrium with free borrowing and lending, the borrower would indeed like (given his impatience) to expand b ...
... turn, the increased demand for borrowing further stimulates the demand for durables and its relative price, inducing a cycle effect that further boosts (non-durable) spending. In an efficient equilibrium with free borrowing and lending, the borrower would indeed like (given his impatience) to expand b ...
Addressing the impact of the decreasing oil price on
... analyzing the relationship between oil price changes and macroeconomic variables such as output growth, employment, wages and inflation. Industrial economies :There are several studies addressing the question of whether there is a relationship between oil price shocks and macroeconomic key variables ...
... analyzing the relationship between oil price changes and macroeconomic variables such as output growth, employment, wages and inflation. Industrial economies :There are several studies addressing the question of whether there is a relationship between oil price shocks and macroeconomic key variables ...
ECON-101 Midterm 1 Practice Key
... Here, unlike in real life, the baskets used to calculate the 2 indexes are the same, so the difference comes entirely from how they are calculated. The effect of the price changes is reduced in the GDP deflator relative to the CPI because, in the former, account is taken of the increased production ...
... Here, unlike in real life, the baskets used to calculate the 2 indexes are the same, so the difference comes entirely from how they are calculated. The effect of the price changes is reduced in the GDP deflator relative to the CPI because, in the former, account is taken of the increased production ...
1997-41
... thus allows the money wage to adjust according to the consumer price index. An orthodox neoclassical framework is simulated in Option (ii). That is a real wage cut to meet the domestic employment constraint. According to the model variables, the 10 per cent increase in both export and import prices ...
... thus allows the money wage to adjust according to the consumer price index. An orthodox neoclassical framework is simulated in Option (ii). That is a real wage cut to meet the domestic employment constraint. According to the model variables, the 10 per cent increase in both export and import prices ...
OHP MASTERS
... • competition may be limited: problem of market power • inequality • the environment and other social goals may be ignored The mixed economy • types of intervention – taxes and subsidies – legislation and regulation – direct provision by government ...
... • competition may be limited: problem of market power • inequality • the environment and other social goals may be ignored The mixed economy • types of intervention – taxes and subsidies – legislation and regulation – direct provision by government ...
Contribution of Monetarism in Macroeconomic Policy
... Given the natural rates of interest and unemployment, monetary policy cannot be pegged to lower the interest rate or the unemployment. Is so it only raises inflationary expectation and increase in price level. There will be no impact on real magnitudes. Monetary authority can control nominal quantit ...
... Given the natural rates of interest and unemployment, monetary policy cannot be pegged to lower the interest rate or the unemployment. Is so it only raises inflationary expectation and increase in price level. There will be no impact on real magnitudes. Monetary authority can control nominal quantit ...
Pre-Test Chapter 6 ed17 2
... Assume an economy that is producing only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the next question(s) on the basis of these data. ...
... Assume an economy that is producing only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the next question(s) on the basis of these data. ...
nci 03.04.17 20:59:35
... question(s) you do not want marked. If you do not cancel extra questions, the examiner will mark the questions in the order presented in your answer book until the required number of questions have been marked. ...
... question(s) you do not want marked. If you do not cancel extra questions, the examiner will mark the questions in the order presented in your answer book until the required number of questions have been marked. ...
The IS-LM/AD-AS Model: A General Framework for Macroeconomic
... ¾ In the long run, firms supply the full-employment level of output, which is not affected by the price level. ...
... ¾ In the long run, firms supply the full-employment level of output, which is not affected by the price level. ...
Putting it all together: IS-LM-FE
... In a Classical world, the economy is supply determined. In this case a decline in prices increases the real value of money which lowers the interest rate ...
... In a Classical world, the economy is supply determined. In this case a decline in prices increases the real value of money which lowers the interest rate ...
Introduction to Economic Growth and Instability
... D. Cyclical fluctuations: Durable goods output is more unstable than non-durables and services because spending on latter usually can not be postponed. Unemployment (One Result of Economic Downturns) A. Types of unemployment: 1. Frictional unemployment consists of those searching for jobs or waiting ...
... D. Cyclical fluctuations: Durable goods output is more unstable than non-durables and services because spending on latter usually can not be postponed. Unemployment (One Result of Economic Downturns) A. Types of unemployment: 1. Frictional unemployment consists of those searching for jobs or waiting ...