Macro Chapter 9
... Q9.2 In the context of aggregate supply, the short run is defined as the period during which 1. some prices are set by contracts and cannot be adjusted. 2. prices can change, but neither aggregate supply nor aggregate demand can shift. 3. individuals have sufficient time to modify their behavior in ...
... Q9.2 In the context of aggregate supply, the short run is defined as the period during which 1. some prices are set by contracts and cannot be adjusted. 2. prices can change, but neither aggregate supply nor aggregate demand can shift. 3. individuals have sufficient time to modify their behavior in ...
Practice Test, February 14, 2003 - Questions
... ________ 10. The government budget position is the surplus or the deficit (if it is a surplus, it is written as a positive number; if it is a deficit, it is written as a negative number). Here, at equilibrium, the government budget position is: ________ 11. The government is considering increasing g ...
... ________ 10. The government budget position is the surplus or the deficit (if it is a surplus, it is written as a positive number; if it is a deficit, it is written as a negative number). Here, at equilibrium, the government budget position is: ________ 11. The government is considering increasing g ...
aemodel
... Excess supply and excess demand are not equally strong forces in the labor market. The supply of workers is such that firms can always get the labor they require (at some price), but workers can do nothing to promote their own employment. He argues that the supply curve of labor may have no influenc ...
... Excess supply and excess demand are not equally strong forces in the labor market. The supply of workers is such that firms can always get the labor they require (at some price), but workers can do nothing to promote their own employment. He argues that the supply curve of labor may have no influenc ...
long-run aggregate supply curve
... • The forces of short-run aggregate supply and aggregate demand meet at an equilibrium price level in an environment of incomplete adjustment of wages and prices. ...
... • The forces of short-run aggregate supply and aggregate demand meet at an equilibrium price level in an environment of incomplete adjustment of wages and prices. ...
Detailed solutions to multiple choices of PS #2
... 7. By the Lucas Critique, agents have rational expectations. The reason why agents can’t make the correct decisions is that they don’t have the relevant information available. That is, information is imperfect. Hence the only reason agents cannot predict whether there will be a recession in the next ...
... 7. By the Lucas Critique, agents have rational expectations. The reason why agents can’t make the correct decisions is that they don’t have the relevant information available. That is, information is imperfect. Hence the only reason agents cannot predict whether there will be a recession in the next ...
Introduction to Macroeconomics
... $105 this year, • Inflation = (105 – 100)/100 = 5% • If a basket of goods cost $75 in 1987 and the same basket cost $145 in 2012, Inflation = (145-75)/75 = 93.3% ...
... $105 this year, • Inflation = (105 – 100)/100 = 5% • If a basket of goods cost $75 in 1987 and the same basket cost $145 in 2012, Inflation = (145-75)/75 = 93.3% ...
(Download, 231 KB)
... used to calculate output yt (j). By simulating (17) one obtains the output gap. After normalising the equilibrium output gap to 1 it is possible to calculate real output for each …rm11 . ...
... used to calculate output yt (j). By simulating (17) one obtains the output gap. After normalising the equilibrium output gap to 1 it is possible to calculate real output for each …rm11 . ...
PDF
... policy has on farmers' supply response and what effects the PDS has on the distribution of food-grains. The present model has been designed to answer such questions. The effects of various policies are examined using different simulations. Policy implications can be derived by computing the market c ...
... policy has on farmers' supply response and what effects the PDS has on the distribution of food-grains. The present model has been designed to answer such questions. The effects of various policies are examined using different simulations. Policy implications can be derived by computing the market c ...
Price rigidity and flexibility: recent theoretical developments
... changing delivery time and improve other auxiliary services rather than change prices. Epstein derives conditions under which an inventory policy, with regard to changes in waiting times and prices, will be optimal, i.e., preferred to a policy where sales are from current production. Epstein shows t ...
... changing delivery time and improve other auxiliary services rather than change prices. Epstein derives conditions under which an inventory policy, with regard to changes in waiting times and prices, will be optimal, i.e., preferred to a policy where sales are from current production. Epstein shows t ...
Unit 4: Aggregate Demand, Aggregate Supply, and Fiscal Policy
... Assume the MPC is .5: 3. How much should the government increasing spending to close the gap? 4. How much should the government cut taxes to close the gap? Now assume that the MPC is .8: 5. How much should the government increasing AD spending to close the gap? 6. How much should the government cut ...
... Assume the MPC is .5: 3. How much should the government increasing spending to close the gap? 4. How much should the government cut taxes to close the gap? Now assume that the MPC is .8: 5. How much should the government increasing AD spending to close the gap? 6. How much should the government cut ...
Marginal Cost Marginal Revenue Profit Total Cost Total Revenue
... a. Consumption increases because a refrigerator is a good purchased by a household. b. Investment increases because a house is an investment good. c. Consumption increases because a car is a good purchased by a household, but investment decreases because the car in Honda’s inventory had been counted ...
... a. Consumption increases because a refrigerator is a good purchased by a household. b. Investment increases because a house is an investment good. c. Consumption increases because a car is a good purchased by a household, but investment decreases because the car in Honda’s inventory had been counted ...
General Equilibrium Theory
... agents intersect. At such an intersection the demanded bundles of each agent are compatible with the available supplies. (gr. 5) If p* = (p1*, p2*) is a competitive equilibrium price vector, then so is p* = (p1*, p2*) for any >0. only relative prices p1*/ p2* are determined in an equilibrium to ...
... agents intersect. At such an intersection the demanded bundles of each agent are compatible with the available supplies. (gr. 5) If p* = (p1*, p2*) is a competitive equilibrium price vector, then so is p* = (p1*, p2*) for any >0. only relative prices p1*/ p2* are determined in an equilibrium to ...
ISMP_2013_L2_v4a_post
... Older approach emphasize the supply of money (Mankiw’s IS analysis). Extreme version is “monetarism,” which holds that demand for money does not depend on interest rate. - Very influential in 1960s through 1983 or so. - When tried, led to very poor predictions ...
... Older approach emphasize the supply of money (Mankiw’s IS analysis). Extreme version is “monetarism,” which holds that demand for money does not depend on interest rate. - Very influential in 1960s through 1983 or so. - When tried, led to very poor predictions ...
Economics 100 Old Quizzes
... b. Real GDP d. National Income Minus Taxes Plus Transfers 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid rec ...
... b. Real GDP d. National Income Minus Taxes Plus Transfers 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid rec ...
The Concept of Income
... • Consider an economy with two sectors, public and private. Each sector produces only one output (hip replacements and corn) and both use homogeneous labour as the only input. The total labour force is L • Social preferences are Cobb-Douglas so the share of expenditure at current prices on public s ...
... • Consider an economy with two sectors, public and private. Each sector produces only one output (hip replacements and corn) and both use homogeneous labour as the only input. The total labour force is L • Social preferences are Cobb-Douglas so the share of expenditure at current prices on public s ...
Economics 100: Old Quizzes
... b. Real GDP d. National Income Minus Taxes Plus Transfers 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid rec ...
... b. Real GDP d. National Income Minus Taxes Plus Transfers 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid rec ...
mba managerial econo..
... A black market is therefore often defined as an illegal market in which goods are sold above the maximum price set by the government. All price controls (including controls on interest rates, exchange rates and other less obvious forms of prices) stimulate black market activity as unsatisfied pote ...
... A black market is therefore often defined as an illegal market in which goods are sold above the maximum price set by the government. All price controls (including controls on interest rates, exchange rates and other less obvious forms of prices) stimulate black market activity as unsatisfied pote ...
Forecasting - Rajeev Dhawan
... two consecutive quarters of decline in real GDP. How does that relate to the NBER's recession dating procedure? – Most of the recessions identified by our procedures consist of two or more quarters of declining real GDP, but not all of them – We consider the depth as well as the duration of the decl ...
... two consecutive quarters of decline in real GDP. How does that relate to the NBER's recession dating procedure? – Most of the recessions identified by our procedures consist of two or more quarters of declining real GDP, but not all of them – We consider the depth as well as the duration of the decl ...
Interest Rates - Cloudfront.net
... what consumers are really paying) 2. New Products- The CPI market basket may not include the newest consumer products. (Result: CPI measures prices but not the increase in choices) 3. Product Quality- The CPI ignores both improvements and decline in product quality. (Result: CPI may suggest that pri ...
... what consumers are really paying) 2. New Products- The CPI market basket may not include the newest consumer products. (Result: CPI measures prices but not the increase in choices) 3. Product Quality- The CPI ignores both improvements and decline in product quality. (Result: CPI may suggest that pri ...
UNDERSTANDING BUSINESS CYCLES* Robert E. Lucas, Jr
... by Mitchell (1951), who summarizes mainly interwar, U.S. experience. The basic technical reference for these methods is Bums and Mitchell (1946). U.S. monetary experience is best displayed in Friedman and Schwartz (1963). An invaluable source for earlier British series is Gayer, Rostow, and Schwartz ...
... by Mitchell (1951), who summarizes mainly interwar, U.S. experience. The basic technical reference for these methods is Bums and Mitchell (1946). U.S. monetary experience is best displayed in Friedman and Schwartz (1963). An invaluable source for earlier British series is Gayer, Rostow, and Schwartz ...