Macroeconomic Stabilization and Structural Reform
... is to find the right combination of monetary, fiscal, and structural policy measures that improve the balance of payments ... ... without damaging other important macroeconomic variables, including output and employment. ...
... is to find the right combination of monetary, fiscal, and structural policy measures that improve the balance of payments ... ... without damaging other important macroeconomic variables, including output and employment. ...
Supply Shocks and Inflation Targeting
... potential level, it accelerates inflation because the economic boom was due to a demand shock. In other words, when the demand curve shifts to the right, there is an increase in output and in price. Evidently, supply shocks imply a different phenomenon: when the supply curve shifts to the right outp ...
... potential level, it accelerates inflation because the economic boom was due to a demand shock. In other words, when the demand curve shifts to the right, there is an increase in output and in price. Evidently, supply shocks imply a different phenomenon: when the supply curve shifts to the right outp ...
Midterm Exam
... increase. Let γ denote growth rates. In class we showed that the growth rate of nominal GDP is approximately the growth rate of real GDP plus the growth rate of the price level, i.e.: γnom GDP = γnom GDP + γP . Therefore to find the growth rate of real GDP, just subtract the growth rate of prices (i ...
... increase. Let γ denote growth rates. In class we showed that the growth rate of nominal GDP is approximately the growth rate of real GDP plus the growth rate of the price level, i.e.: γnom GDP = γnom GDP + γP . Therefore to find the growth rate of real GDP, just subtract the growth rate of prices (i ...
Ch13B-7e
... The Multiplier and the Price Level In the equilibrium expenditure model, the price level is constant. But real firms don’t hold their prices constant for long. When they have an unplanned change in inventories, they change production and prices. And the price level changes when firms change prices. ...
... The Multiplier and the Price Level In the equilibrium expenditure model, the price level is constant. But real firms don’t hold their prices constant for long. When they have an unplanned change in inventories, they change production and prices. And the price level changes when firms change prices. ...
29 U.S. INFLATION, UNEMPLOYMENT, AND BUSINESS CYCLES**
... The unemployment rate was probably high in all of the recessionary years. It was probably the highest in 2000 and 2002 when the recessions were the most severe. There is not a strong relationship between unemployment and inflation in the data. The unemployment rate would likely have been high in 199 ...
... The unemployment rate was probably high in all of the recessionary years. It was probably the highest in 2000 and 2002 when the recessions were the most severe. There is not a strong relationship between unemployment and inflation in the data. The unemployment rate would likely have been high in 199 ...
No Slide Title
... Inflation Measured by Price Index • Price index - a number that compares prices in one year with some earlier base date • Consumer Price Index (CPI) - a number used to calculate changes in the average level of prices for a number of items typically bought by urban families – Most common CPI for the ...
... Inflation Measured by Price Index • Price index - a number that compares prices in one year with some earlier base date • Consumer Price Index (CPI) - a number used to calculate changes in the average level of prices for a number of items typically bought by urban families – Most common CPI for the ...
Principles of Macroeconomics, Case/Fair/Oster, 11e
... macroeconomics (BG2400/ECO2202) Deals with the economy as a whole. Macroeconomics focuses on the determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. ...
... macroeconomics (BG2400/ECO2202) Deals with the economy as a whole. Macroeconomics focuses on the determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. ...
Short-run aggregate supply
... – It will be steep when • interest rate decisions do not respond much to inflation • and aggregate demand responds little to interest rate changes. ...
... – It will be steep when • interest rate decisions do not respond much to inflation • and aggregate demand responds little to interest rate changes. ...
President’s Report Board Directors
... The real estate market continued to improve in October, as sales of both new and existing homes increased. The better sales have yet to translate to new construction, as housing starts and building permits have been little changed. In the manufacturing sector, the ISM index eased in November but hel ...
... The real estate market continued to improve in October, as sales of both new and existing homes increased. The better sales have yet to translate to new construction, as housing starts and building permits have been little changed. In the manufacturing sector, the ISM index eased in November but hel ...
1. NIPA: GNP and GDP 2. Saving and Wealth 3. Prices and Inflation
... • We have been discussing real GDP as if the prices used to compute this measure never change from their base year values. If the BEA really did this, over time the prices used would become more and more dated. ...
... • We have been discussing real GDP as if the prices used to compute this measure never change from their base year values. If the BEA really did this, over time the prices used would become more and more dated. ...
A global perspective on the great financial insurance run: Causes
... follow banking crises; with government revenues dragged down, fiscal deficits worsen; deficits lead to debt; as debt piles up rating downgrades follow. For the most fortunate countries, the crisis does not lead to the deadliest D: default, but for many it has. Even a cursory reading of the global fi ...
... follow banking crises; with government revenues dragged down, fiscal deficits worsen; deficits lead to debt; as debt piles up rating downgrades follow. For the most fortunate countries, the crisis does not lead to the deadliest D: default, but for many it has. Even a cursory reading of the global fi ...
PDF
... How does this feature of the Indonesian policy environment affect the relationship between world prices and poverty? The present paper analyzes this question using a general equilibrium framework. It is concluded that in the case of all major commodities except rice, higher world food prices raised ...
... How does this feature of the Indonesian policy environment affect the relationship between world prices and poverty? The present paper analyzes this question using a general equilibrium framework. It is concluded that in the case of all major commodities except rice, higher world food prices raised ...
MACROECONOMIC PRINCIPLES (ECON
... including inflation, unemployment, and economic growth. Economic growth and fluctuations. What caused the current recession? What are monetary and fiscal policies? How do they work? The last 2 recessions occurred 7 / 90 (peak) 3 / 01 (trough) and 3 / 01 (peak) 12 / 01 (trough). The most recent econo ...
... including inflation, unemployment, and economic growth. Economic growth and fluctuations. What caused the current recession? What are monetary and fiscal policies? How do they work? The last 2 recessions occurred 7 / 90 (peak) 3 / 01 (trough) and 3 / 01 (peak) 12 / 01 (trough). The most recent econo ...
Oil price shocks and their effects on economic activity and prices: an
... research for quite some time. The concern in the measurement of these effects was triggered primarily in the wake of the two political events that took place in the 1970s - the OPEC oil embargo during the Yom Kippur War in 1973 and the Iran/Iraq war in 1979. In the sequence of these events economies ...
... research for quite some time. The concern in the measurement of these effects was triggered primarily in the wake of the two political events that took place in the 1970s - the OPEC oil embargo during the Yom Kippur War in 1973 and the Iran/Iraq war in 1979. In the sequence of these events economies ...
Methodology Notes: Links between GDP and Gross Value Added
... Office for National Statistics This is the latest article in a new series called ‘Methodology Notes’. This series aims to explain statistical issues relevant to our data in a simple, non-technical way. As well as defining the topic areas, the notes explain when, why and how these methodologies are u ...
... Office for National Statistics This is the latest article in a new series called ‘Methodology Notes’. This series aims to explain statistical issues relevant to our data in a simple, non-technical way. As well as defining the topic areas, the notes explain when, why and how these methodologies are u ...
GDP
... If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. ...
... If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. ...
Section 6 Practice Test Figure 31-1: Money Market I 1. Use the
... 15. Suppose that U.S. debt is $7 trillion dollars at the beginning of the fiscal year. During the fiscal year, the government spending and government transfers are $2 trillion and tax revenues equal $1.5 trillion. At the end of the fiscal year, the debt is: A. $10.5 trillion. B. $6.5 trillion. C. $ ...
... 15. Suppose that U.S. debt is $7 trillion dollars at the beginning of the fiscal year. During the fiscal year, the government spending and government transfers are $2 trillion and tax revenues equal $1.5 trillion. At the end of the fiscal year, the debt is: A. $10.5 trillion. B. $6.5 trillion. C. $ ...
Basic Macroeconomic Relationships
... Classical viewpointnot possible to overproduce goods because the production of those goods would always generate a demand that was sufficient to purchase the goods. (what would they say about the recent inventories of our auto industry?) ...
... Classical viewpointnot possible to overproduce goods because the production of those goods would always generate a demand that was sufficient to purchase the goods. (what would they say about the recent inventories of our auto industry?) ...
Homework #2
... adjustment (COLA). One example of a COLA is with Social Security. The COLA was instituted to keep benefits at a constant level of purchasing power over time. Also anytime you wanted to measure the effect of imports, you need to use the CPI because the GDP deflator does not include imports in its cal ...
... adjustment (COLA). One example of a COLA is with Social Security. The COLA was instituted to keep benefits at a constant level of purchasing power over time. Also anytime you wanted to measure the effect of imports, you need to use the CPI because the GDP deflator does not include imports in its cal ...
Business Cycles, Unemployment, and Inflation
... real output is at or very close to the economy’s capacity. The price level is likely to rise at this level. Recession – period of decline in total output, income, and employment. The downturn, which lasts 6 months or more, is marked by widespread contraction of business activity in many industries. ...
... real output is at or very close to the economy’s capacity. The price level is likely to rise at this level. Recession – period of decline in total output, income, and employment. The downturn, which lasts 6 months or more, is marked by widespread contraction of business activity in many industries. ...
Multiple-choicefrågor till tentamen i makroekonomi to 27 april 2006
... deficit (as a percentage of GDP), which is financed through printing new money. Thus, the growth rate of the nominal money supply is high. What are the effects on the inflation rate, and on the nominal interest rate, and on the exchange rate? 3A. Assume that the growth rate in nominal money supply ( ...
... deficit (as a percentage of GDP), which is financed through printing new money. Thus, the growth rate of the nominal money supply is high. What are the effects on the inflation rate, and on the nominal interest rate, and on the exchange rate? 3A. Assume that the growth rate in nominal money supply ( ...