File
... For each of the events below, make additions to the graph to illustrate the change. Then indicate the response in terms of shifts in or movements along the aggregate demand or aggregate supply curve and the short-run effect on real GDP and the price level. Indicate shifts in the curve by S and movem ...
... For each of the events below, make additions to the graph to illustrate the change. Then indicate the response in terms of shifts in or movements along the aggregate demand or aggregate supply curve and the short-run effect on real GDP and the price level. Indicate shifts in the curve by S and movem ...
file
... Gov’t increases the supply slower than the demanddeflation (each piece grows more valuable, need less to buy) Why would Gov’t want to print too much money? 1. When they can’t raise enough tax revenue to pay obligations. 2. When they want to stimulate the economy during a recession or depression. ...
... Gov’t increases the supply slower than the demanddeflation (each piece grows more valuable, need less to buy) Why would Gov’t want to print too much money? 1. When they can’t raise enough tax revenue to pay obligations. 2. When they want to stimulate the economy during a recession or depression. ...
Presentation
... Inflation Becomes a Concern Little labor force slack left. Maybe 1% of labor force. ...
... Inflation Becomes a Concern Little labor force slack left. Maybe 1% of labor force. ...
chapter 9 - chass.utoronto
... quarters or a few years. This upward-sloping aggregate supply curve results from the fact that wage and price adjustments are slow and uncoordinated. Chapter 6 offers several explanations for the fact that labour markets do not adjust quickly. These include the imperfect information market-clearing ...
... quarters or a few years. This upward-sloping aggregate supply curve results from the fact that wage and price adjustments are slow and uncoordinated. Chapter 6 offers several explanations for the fact that labour markets do not adjust quickly. These include the imperfect information market-clearing ...
Homework 2
... everyone has the same information about the state of the economy, then monetary policy cannot be used systematically to stabilize output. Hence, a policy of keeping the money supply constant will have the same real effects as a policy of adjusting the money supply in response to the state of the eco ...
... everyone has the same information about the state of the economy, then monetary policy cannot be used systematically to stabilize output. Hence, a policy of keeping the money supply constant will have the same real effects as a policy of adjusting the money supply in response to the state of the eco ...
FedViews
... inflation, which excludes spending on volatile energy and food components. To some extent, this reflects decisions by businesses to adjust profit margins rather than pass through higher costs to customers, particularly when demand is weak. A more important reason is that for many consumption goods, ...
... inflation, which excludes spending on volatile energy and food components. To some extent, this reflects decisions by businesses to adjust profit margins rather than pass through higher costs to customers, particularly when demand is weak. A more important reason is that for many consumption goods, ...
Economics: History of Micro
... Microeconomics came about because firms did not know what price to charge. -What price should a firm charge? At different periods in time there have been different philosophies about how firms should set their prices. (1) Church influence in pricing: In early western history, the church had a signif ...
... Microeconomics came about because firms did not know what price to charge. -What price should a firm charge? At different periods in time there have been different philosophies about how firms should set their prices. (1) Church influence in pricing: In early western history, the church had a signif ...
New Keynesian Theory I
... Prices fall in the factor sectors, affecting factor firms’ profitability and liquidity, and these firms’ purchases of factors and capital. In response to the increased risk, firms reduce inventories since holding inventory represents a risk. (This explains a long-standing mystery about why inventori ...
... Prices fall in the factor sectors, affecting factor firms’ profitability and liquidity, and these firms’ purchases of factors and capital. In response to the increased risk, firms reduce inventories since holding inventory represents a risk. (This explains a long-standing mystery about why inventori ...
economic environment
... in the prices of most goods and services • Low inflation = good condition • Yang mempengaruhi inflasi – Nilai tukar rupiah yang turun – Kebijakan pemerintah di bidang harga dan pendapatan – Meningkatnya kegiatan ekonomi ...
... in the prices of most goods and services • Low inflation = good condition • Yang mempengaruhi inflasi – Nilai tukar rupiah yang turun – Kebijakan pemerintah di bidang harga dan pendapatan – Meningkatnya kegiatan ekonomi ...
11 - Stephen Kinsella
... 2. AS/AD model Questions for discussion in tutorials 1. Can Ireland spend its way out of the current economic downturn? Should it? 2. “The Oil Crises of the 1970’s were supply crises, the Great Depression and our current economic downturn in Ireland are examples of a demand crisis.” Discuss this sta ...
... 2. AS/AD model Questions for discussion in tutorials 1. Can Ireland spend its way out of the current economic downturn? Should it? 2. “The Oil Crises of the 1970’s were supply crises, the Great Depression and our current economic downturn in Ireland are examples of a demand crisis.” Discuss this sta ...
Classical vs. Keynesian Economists
... Real Variables do not depend on nominal variables Great Depression challenged Classical View ...
... Real Variables do not depend on nominal variables Great Depression challenged Classical View ...
Problem Sheet 1
... If you personally only consume pens (no paper or pencils), would your standart of living be likely to increase, decrease or stay the same over the years 2001-2003? Why? Over a long period of time, the price of a candy bar rose from $1 to $6. Over the same period, CPI rose from 150 to 300. Adjusted o ...
... If you personally only consume pens (no paper or pencils), would your standart of living be likely to increase, decrease or stay the same over the years 2001-2003? Why? Over a long period of time, the price of a candy bar rose from $1 to $6. Over the same period, CPI rose from 150 to 300. Adjusted o ...
Intro to Inflation
... paid for a loan, unadjusted for the effects of inflation Real Interest Rate: the nominal interest rate adjusted for inflation (subtract the inflation rate from the nominal interest rate) Example: The loan nominal interest rate is 10%, and the ...
... paid for a loan, unadjusted for the effects of inflation Real Interest Rate: the nominal interest rate adjusted for inflation (subtract the inflation rate from the nominal interest rate) Example: The loan nominal interest rate is 10%, and the ...
Notes - Angelfire
... A price index is a measurement that shows how the average price of a standard group of goods changes over time. The consumer price index (CPI) is computed each month by the ___________________________. CPI is determined by measuring the price of a _________________ meant to represent the typical ...
... A price index is a measurement that shows how the average price of a standard group of goods changes over time. The consumer price index (CPI) is computed each month by the ___________________________. CPI is determined by measuring the price of a _________________ meant to represent the typical ...
Perfect Competition
... 1. If prices are falling consumers will be more reluctant to spend because they feel that prices will be lower in the future. This delay in spending will reduce AD and cause lower economic growth. 2. Monetary policy becomes ineffective because interest rates cannot fall below 0. Therefore real inter ...
... 1. If prices are falling consumers will be more reluctant to spend because they feel that prices will be lower in the future. This delay in spending will reduce AD and cause lower economic growth. 2. Monetary policy becomes ineffective because interest rates cannot fall below 0. Therefore real inter ...
Goal 8.06,07
... Is the circular flow model complete? No, nor is it meant to be. It is merely a theory that explains how free enterprise works. Banks for example, a very important part of the economy, are left out. Some socities do not accept the circular flow model theory. These socities, therefore, choose another ...
... Is the circular flow model complete? No, nor is it meant to be. It is merely a theory that explains how free enterprise works. Banks for example, a very important part of the economy, are left out. Some socities do not accept the circular flow model theory. These socities, therefore, choose another ...
The Business Cycle - McGraw Hill Higher Education
... Average Prices • Relative changes can occur in a period of stable average prices. • Changes in relative prices are market signals that help reallocate resources in the economy. • In a general inflation – when all prices are rising – prices do not help to reallocate resources. ...
... Average Prices • Relative changes can occur in a period of stable average prices. • Changes in relative prices are market signals that help reallocate resources in the economy. • In a general inflation – when all prices are rising – prices do not help to reallocate resources. ...
Chapter 11: Classical and Keynesian Macro Analysis Classical
... savings equal desired investment. Desired saving is positively related to the interest rate and is a supply of savings curve. Desired investment is inversely related to the interest rate and is a demand for investment curve. The intersection of both desired savings and investment curves will determi ...
... savings equal desired investment. Desired saving is positively related to the interest rate and is a supply of savings curve. Desired investment is inversely related to the interest rate and is a demand for investment curve. The intersection of both desired savings and investment curves will determi ...
Textbook Chapter 4 (pages 43-53)
... Introduction Phase – product is placed on the market and is NEW; may be considered a FAD; the COMPANY is already in DEBT due to the initial start-up costs of making the product eg. Hoverboards & latest versions of a cell phone DECIDE on which strategy to take when setting your prices: a. ...
... Introduction Phase – product is placed on the market and is NEW; may be considered a FAD; the COMPANY is already in DEBT due to the initial start-up costs of making the product eg. Hoverboards & latest versions of a cell phone DECIDE on which strategy to take when setting your prices: a. ...