AD and AS - uwcmaastricht-econ
... in particular wages, are roughly constant or inflexible (they do not change much in response to supply and demand). Long run: the period of time when the prices of all resources, including wages, are flexible and change in response to changes in the price level. The price of labour is often rigid be ...
... in particular wages, are roughly constant or inflexible (they do not change much in response to supply and demand). Long run: the period of time when the prices of all resources, including wages, are flexible and change in response to changes in the price level. The price of labour is often rigid be ...
PB 202 MACROECONOMICS
... is a statistical measure of changes in a representative group of individual data points These data may be derived from any number of sources, including company performance, prices, productivity, and employment Example : Consumer Price Index (CPI), Producer Price Index (PPI). ...
... is a statistical measure of changes in a representative group of individual data points These data may be derived from any number of sources, including company performance, prices, productivity, and employment Example : Consumer Price Index (CPI), Producer Price Index (PPI). ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... that nearly half of output variability, at all horizons, is caused by shocks to labor supply. At the conference, Robert Hall proposed eliminating what he calls the Herbert Hoover assumption-that recessions are caused by spontaneous attacks of laziness. Results obtained in this case are presented in ...
... that nearly half of output variability, at all horizons, is caused by shocks to labor supply. At the conference, Robert Hall proposed eliminating what he calls the Herbert Hoover assumption-that recessions are caused by spontaneous attacks of laziness. Results obtained in this case are presented in ...
GDP and Business Cycles
... production capacity i.e. failure to produce more drives up price “too much money chasing too few goods” In long run, wages will go up as workers are in demand & cost of living increases ...
... production capacity i.e. failure to produce more drives up price “too much money chasing too few goods” In long run, wages will go up as workers are in demand & cost of living increases ...
Measure Economic Growth
... • Person does not have a job but is looking for one. • Natural Rate of Unemployment – rate that occurs when resources are fully employed. • Current US Unemployment Rate – 9.1% • Frictional Unemployment – due to time spent looking for a job • Cyclical Unemployment – when unemployment rises during a r ...
... • Person does not have a job but is looking for one. • Natural Rate of Unemployment – rate that occurs when resources are fully employed. • Current US Unemployment Rate – 9.1% • Frictional Unemployment – due to time spent looking for a job • Cyclical Unemployment – when unemployment rises during a r ...
And the measurement of inflation
... to decline; therefore REAL INCOME declines Demand-pull inflation can reduce real output because inflation diverts time and effort toward activities designed to hedge against inflation Mild inflation (< 3%) may be a healthy result of a prosperous economy or have an undesirable effect on real income – ...
... to decline; therefore REAL INCOME declines Demand-pull inflation can reduce real output because inflation diverts time and effort toward activities designed to hedge against inflation Mild inflation (< 3%) may be a healthy result of a prosperous economy or have an undesirable effect on real income – ...
Price level (P) Real GDP (Y) B′ Note that output (Y) has not
... The Classical Model assumes that economic agents possess perfect information and that markets clear, i.e. are typified by perfectly flexible wages and prices. The upshot of these assumptions, when applied to the short run with a fixed capital stock, is that output is totally determined by autonomous ...
... The Classical Model assumes that economic agents possess perfect information and that markets clear, i.e. are typified by perfectly flexible wages and prices. The upshot of these assumptions, when applied to the short run with a fixed capital stock, is that output is totally determined by autonomous ...
Everything you need to know about isocosts and isoquants
... will require twice as much of each input. Thus the map of isoquants is regularly spaced. If we can prove a theorem for one output level, then it will be valid for all output levels. The assumption of constant returns to scale (and no fixed costs) also implies that average cost and marginal cost are ...
... will require twice as much of each input. Thus the map of isoquants is regularly spaced. If we can prove a theorem for one output level, then it will be valid for all output levels. The assumption of constant returns to scale (and no fixed costs) also implies that average cost and marginal cost are ...
Chapter 11 Aggregate Supply with Imperfect Information
... Friedman and his colleagues at the University of Chicago and elsewhere. The monetarists believed that money was neutral, at least in the long run, and that attempts to use monetary or fiscal policy to smooth the business cycle were likely to be ineffective (at best) or perhaps actually destabilizing ...
... Friedman and his colleagues at the University of Chicago and elsewhere. The monetarists believed that money was neutral, at least in the long run, and that attempts to use monetary or fiscal policy to smooth the business cycle were likely to be ineffective (at best) or perhaps actually destabilizing ...
Lahore School of Economics
... A. as prices fall, nominal income rises and so does the demand for real goods and services B. rising prices reduce people’s wealth and thereby reduce spending C. with falling prices, government decides to spend less to increase price level D. businesses increase investment spending in response to hi ...
... A. as prices fall, nominal income rises and so does the demand for real goods and services B. rising prices reduce people’s wealth and thereby reduce spending C. with falling prices, government decides to spend less to increase price level D. businesses increase investment spending in response to hi ...
The Basic Macro Model
... Market failure in the economy -nominal wage rates and energy prices do not adjust flexibly to macroeconomic conditions. ...
... Market failure in the economy -nominal wage rates and energy prices do not adjust flexibly to macroeconomic conditions. ...
quiz no.6 - Kuwait University - College of Business Administration
... 6. The combination of a successful wage push by workers and the government's commitment to high employment leads to A) demand-pull inflation. B) supply-side inflation. C) supply-shock inflation. D) cost-push inflation. Answer: D 7. Theoretically, one can distinguish a demand-pull inflation from a c ...
... 6. The combination of a successful wage push by workers and the government's commitment to high employment leads to A) demand-pull inflation. B) supply-side inflation. C) supply-shock inflation. D) cost-push inflation. Answer: D 7. Theoretically, one can distinguish a demand-pull inflation from a c ...
Handbook of Economic Lessons (California Council on
... explain how their lives would be more difficult in a world with no money, or in a world where money sharply lost its value. 18. A nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government ...
... explain how their lives would be more difficult in a world with no money, or in a world where money sharply lost its value. 18. A nation's overall levels of income, employment, and prices are determined by the interaction of spending and production decisions made by all households, firms, government ...
06.04_The_operation_of_the_electricity_markets
... – Price spikes to very high levels not necessarily evidence of uncompetitive prices or prices above marginal cost because of “spring washer” effect ...
... – Price spikes to very high levels not necessarily evidence of uncompetitive prices or prices above marginal cost because of “spring washer” effect ...
Looking into the crystal ball: A forecast
... its debt position. If this US domestic gloom continues or worsens, it is difficult to see American consumers playing any part in driving world recovery. Further, it could impact equity markets, and start to focus financial markets on the size of US state and Federal debt. But just as possible, the U ...
... its debt position. If this US domestic gloom continues or worsens, it is difficult to see American consumers playing any part in driving world recovery. Further, it could impact equity markets, and start to focus financial markets on the size of US state and Federal debt. But just as possible, the U ...
Notes on Unemployment – Chapter 13 Types of Unemployment 1
... The demand-pull theory states that inflation occurs when demand for goods and services exceeds existing supplies. (think “beanie babies” so popular it pulls the normal prices higher) ...
... The demand-pull theory states that inflation occurs when demand for goods and services exceeds existing supplies. (think “beanie babies” so popular it pulls the normal prices higher) ...
Preview Sample 2
... a. Frictional Unemployment. Frictional Unemployment is a shortterm unemployment that is not related to the business cycle; this includes people who are unemployed while waiting to start a better job, those who are reentering the workforce, and those entering for the ...
... a. Frictional Unemployment. Frictional Unemployment is a shortterm unemployment that is not related to the business cycle; this includes people who are unemployed while waiting to start a better job, those who are reentering the workforce, and those entering for the ...
Document
... DO NOT open the cover page until you are told to do so. You have 90 minutes. DO NOT cheat. If I or one of the proctors suspect that you are cheating or trying to cheat we will mark your exam right away and if you get two marks, your test will be sent to the Dean’s Office. You are NOT allowed ...
... DO NOT open the cover page until you are told to do so. You have 90 minutes. DO NOT cheat. If I or one of the proctors suspect that you are cheating or trying to cheat we will mark your exam right away and if you get two marks, your test will be sent to the Dean’s Office. You are NOT allowed ...
power point slides for lecture #5 (ppt file)
... Forecasted values are then the expected value of the model based on available information. Explicitly accommodates: Trend Seasonality Cyclical variation ...
... Forecasted values are then the expected value of the model based on available information. Explicitly accommodates: Trend Seasonality Cyclical variation ...
The Economics of Supply and Demand 9.1 Supply and Demand
... determined by _________ of supply and demand if not _____________ to cover costs and allow for a profit, the business will cease production of the product Pricing Policies one-price policy all customers pay the __________ price for a product ...
... determined by _________ of supply and demand if not _____________ to cover costs and allow for a profit, the business will cease production of the product Pricing Policies one-price policy all customers pay the __________ price for a product ...
Sample Questions_Chap 24
... 3) A common assumption among macroeconomists is that when real GDP is less than potential output, factor prices adjust and the A) AS curve shifts to the right only very slowly. B) AD curve shifts to the left rapidly. C) AS curve shifts to the left fairly rapidly. D) AS curve shifts to the right very ...
... 3) A common assumption among macroeconomists is that when real GDP is less than potential output, factor prices adjust and the A) AS curve shifts to the right only very slowly. B) AD curve shifts to the left rapidly. C) AS curve shifts to the left fairly rapidly. D) AS curve shifts to the right very ...