consumer price index
... • If the quality of a good rises from one year to the next, the value of a dollar rises, 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. • The BLS tries to adjust the ...
... • If the quality of a good rises from one year to the next, the value of a dollar rises, 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. • The BLS tries to adjust the ...
ECONOMICS Review questions edited
... b. Unemployment rises, output falls but prices rise c. Money supply increases due to printing of money and prices rise with money devaluation d. Demand increases and prices rise 11. As aggregate demand increases in reaction to expansionary macroeconomic policy, ceteris paribus a. The aggregate deman ...
... b. Unemployment rises, output falls but prices rise c. Money supply increases due to printing of money and prices rise with money devaluation d. Demand increases and prices rise 11. As aggregate demand increases in reaction to expansionary macroeconomic policy, ceteris paribus a. The aggregate deman ...
Advances in Business Cycle Theory
... There are externalities to price adjustment: A price reduction by one firm causes the overall price level to fall (albeit slightly). This raises real money balances and increases ...
... There are externalities to price adjustment: A price reduction by one firm causes the overall price level to fall (albeit slightly). This raises real money balances and increases ...
Nominal GDP
... • Integrates a set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules. • Accounts compiled for a succession of time periods, thus providing a continuing flow of information, indispensable for the m ...
... • Integrates a set of macroeconomic accounts, balance sheets and tables based on a set of internationally agreed concepts, definitions, classifications and accounting rules. • Accounts compiled for a succession of time periods, thus providing a continuing flow of information, indispensable for the m ...
the cpi and the cost of living
... revise the CPI basket every two years. When the BLS revises the CPI basket, the reference base period does not change. ...
... revise the CPI basket every two years. When the BLS revises the CPI basket, the reference base period does not change. ...
El_Salvador_en.pdf
... In 2013, there was a spike in food and beverage prices as well as in energy prices, as higher international prices were passed on to the consumer, and electricity rates were adjusted upward. Nevertheless, cumulative 12-month consumer price inflation was just barely 0.8%, the same rate as in 2012. Th ...
... In 2013, there was a spike in food and beverage prices as well as in energy prices, as higher international prices were passed on to the consumer, and electricity rates were adjusted upward. Nevertheless, cumulative 12-month consumer price inflation was just barely 0.8%, the same rate as in 2012. Th ...
AP Macroeconomics Unit 5 Portfolio Questions and Answers
... “the price level would be high or low; it doesn’t matter, because the amount of supply (real GDP or output) is NOT a function of prices”. There are many situations where the price level in the economy really affects the amount supplied by all producers. In 1936 J. M. Keynes (elaborated another appro ...
... “the price level would be high or low; it doesn’t matter, because the amount of supply (real GDP or output) is NOT a function of prices”. There are many situations where the price level in the economy really affects the amount supplied by all producers. In 1936 J. M. Keynes (elaborated another appro ...
Inflation
... 2. What was needed to stimulate the economy in the 1960s? What form did it take? -a massive tax cut - to enact the program - to pursue the proposals - to push the passage of the plan through the Congress 3. How well did Kennedy’s tax plan work? - a fiscal measure -to stimulate the economy - business ...
... 2. What was needed to stimulate the economy in the 1960s? What form did it take? -a massive tax cut - to enact the program - to pursue the proposals - to push the passage of the plan through the Congress 3. How well did Kennedy’s tax plan work? - a fiscal measure -to stimulate the economy - business ...
Slide 1
... The Fed would sell securities to reduce the amount of money and credit in the economy. Is this expansionary or contractionary monetary policy? Selling securities is contractionary monetary policy. What did the economists who studied the Great Depression - and, as a result, the Federal Reserve System ...
... The Fed would sell securities to reduce the amount of money and credit in the economy. Is this expansionary or contractionary monetary policy? Selling securities is contractionary monetary policy. What did the economists who studied the Great Depression - and, as a result, the Federal Reserve System ...
Week 15 Objective: Students will learn the determinants of AS and
... Shift the AS curve? 5. Labor productivity in the computer industry has been rising at a faster rate than worker’s wages. Graph the situation and show how aggregate supply, prices and output/employment are affected. ...
... Shift the AS curve? 5. Labor productivity in the computer industry has been rising at a faster rate than worker’s wages. Graph the situation and show how aggregate supply, prices and output/employment are affected. ...
Macro - Homework 1 Multiple Choice Identify the choice that best
... a. are not rational decision makers. b. are well aware that their opportunity cost of attending college is very high. c. are concerned more about present circumstances than their future. d. underestimate the value of a college education. ...
... a. are not rational decision makers. b. are well aware that their opportunity cost of attending college is very high. c. are concerned more about present circumstances than their future. d. underestimate the value of a college education. ...
03. 15 Jun 07_The Ro..
... • Coming to the years 1995 – 2007, if we take a look at the annual global GDP growth, it rose steadily from 1995 until 2000 before falling sharply in 2001. It rebounded again in 2002 and peaked in 2004. It declined slightly in 2005, but bounced back in 2006. In 2007, it is expected that the global e ...
... • Coming to the years 1995 – 2007, if we take a look at the annual global GDP growth, it rose steadily from 1995 until 2000 before falling sharply in 2001. It rebounded again in 2002 and peaked in 2004. It declined slightly in 2005, but bounced back in 2006. In 2007, it is expected that the global e ...
This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER Macroeconomics Annual 2012, Volume 27
... with the degree to which changes in broad price indices reflect variation in the size of the changes in individual prices that would in any event be reconsidered (the “intensive margin” of price adjustment), or variation in the number of prices that are reconsidered over a given period of time (the ...
... with the degree to which changes in broad price indices reflect variation in the size of the changes in individual prices that would in any event be reconsidered (the “intensive margin” of price adjustment), or variation in the number of prices that are reconsidered over a given period of time (the ...
Microeconomic Reforms
... best example of this process is Australia Post. Up until November 1993, regulations prohibited anyone from carrying a letter for less than $4.50. At that time the price was dropped to $1.80, and letters over 250g could be carried by anyone at any price. ...
... best example of this process is Australia Post. Up until November 1993, regulations prohibited anyone from carrying a letter for less than $4.50. At that time the price was dropped to $1.80, and letters over 250g could be carried by anyone at any price. ...
Inflation is a persistent increase in the general price level
... Demand-Pull Inflation Demand-pull inflation is inflation that occurs when total demand for goods and services exceeds the economy's capacityto produce those goods. Put another way, there is "too much money chasing too few goods. " Typically, demand-pull inflation occurs when unemployment is low or f ...
... Demand-Pull Inflation Demand-pull inflation is inflation that occurs when total demand for goods and services exceeds the economy's capacityto produce those goods. Put another way, there is "too much money chasing too few goods. " Typically, demand-pull inflation occurs when unemployment is low or f ...
Prices and Quantities
... Use measures of prices and quantities to calculate economic aggregates. Calculate the “real” aggregates. Use measures of prices and quantities to calculate aggregate prices. Adjust nominal quantities into real quantities using an arbitrary reference year. ...
... Use measures of prices and quantities to calculate economic aggregates. Calculate the “real” aggregates. Use measures of prices and quantities to calculate aggregate prices. Adjust nominal quantities into real quantities using an arbitrary reference year. ...
Econ 203 Test 1 (Make sure to put your name on the test and on
... 16. Economists generally support relatively unrestricted trade agreements between nations because a. such agreements increase consumption possibilities by providing lower cost goods b. producers are almost always in favor of such agreements c. such trade rarely involves shifts in employment d. none ...
... 16. Economists generally support relatively unrestricted trade agreements between nations because a. such agreements increase consumption possibilities by providing lower cost goods b. producers are almost always in favor of such agreements c. such trade rarely involves shifts in employment d. none ...
PROBLEM SET 3 14.02 Macroeconomics March 15, 2006 Due March 22, 2006
... 3. The aggregate supply curve is upward sloping because firms produce more goods at higher prices. Ans: False. The AS curve is upward sloping because higher output means a lower unemployment rate, which enhances workers’ bargaining power and results in a higher real wage for a given expected price l ...
... 3. The aggregate supply curve is upward sloping because firms produce more goods at higher prices. Ans: False. The AS curve is upward sloping because higher output means a lower unemployment rate, which enhances workers’ bargaining power and results in a higher real wage for a given expected price l ...
Objectives of the chapter - The Good, the Bad and the Economist
... respond by rising prices. In sectors where businesses find it almost impossible to produce more, and where the increase in demand is at its greatest, prices are likely to rise more sharply. ...
... respond by rising prices. In sectors where businesses find it almost impossible to produce more, and where the increase in demand is at its greatest, prices are likely to rise more sharply. ...
Dear Mr
... Recall the Flow of Funds model is the model with flexible prices, where we are always at full employment. Hence, the Flow of Funds model corresponds to the long run equilibrium, or the point of intersection of the AD curve and the LRAS curve. The focus in the Flow of Funds model is, therefore, not ...
... Recall the Flow of Funds model is the model with flexible prices, where we are always at full employment. Hence, the Flow of Funds model corresponds to the long run equilibrium, or the point of intersection of the AD curve and the LRAS curve. The focus in the Flow of Funds model is, therefore, not ...
Yarmouk University Economics 200
... After completing this course the student must acquire the knowledge and ability to: Distinguish between the major concepts of macro economics, like nominal, real, and natural GDP, and the natural rate of unemployment. The difference between GDP and GNP. How to measure nominal and real GDP and ho ...
... After completing this course the student must acquire the knowledge and ability to: Distinguish between the major concepts of macro economics, like nominal, real, and natural GDP, and the natural rate of unemployment. The difference between GDP and GNP. How to measure nominal and real GDP and ho ...