Business fixed investment
... stock of inventories a firm holds, the more output it can produce • A third reason for holding inventories is to avoid running out of goods when sales are unexpectedly high – This motive for holding inventories is called stock-out avoidance • A fourth explanation of inventories is dictated by the pr ...
... stock of inventories a firm holds, the more output it can produce • A third reason for holding inventories is to avoid running out of goods when sales are unexpectedly high – This motive for holding inventories is called stock-out avoidance • A fourth explanation of inventories is dictated by the pr ...
Gasoline prices and road fatalities - Arndt
... so-called “between variation” has a natural long-run interpretation. We then proceed to panel estimates using the pooled ordinary least squares (OLS), between, and fixed-effects estimators. The between estimator uses average data for each country and provides estimates of long-run effects (Baltagi a ...
... so-called “between variation” has a natural long-run interpretation. We then proceed to panel estimates using the pooled ordinary least squares (OLS), between, and fixed-effects estimators. The between estimator uses average data for each country and provides estimates of long-run effects (Baltagi a ...
A world without inflation
... spread of technological innovations, which are expected to keep exerting constant downward pressure on inflation from the supply side. The second reason is that, since 2008, most advanced economies have fallen into a liquidity trap (when the zero lower bound on the central bank policy rate is strict ...
... spread of technological innovations, which are expected to keep exerting constant downward pressure on inflation from the supply side. The second reason is that, since 2008, most advanced economies have fallen into a liquidity trap (when the zero lower bound on the central bank policy rate is strict ...
FREE Sample Here
... B) allow wages to decline, so that firms will want to hire more workers C) put on wage and price controls, so wages won't rise and firms won't have to lay people off to cut costs D) have the government increase its demand for goods and services Answer: D Diff: 2 Type: MC Page Ref: 17 57) The primary ...
... B) allow wages to decline, so that firms will want to hire more workers C) put on wage and price controls, so wages won't rise and firms won't have to lay people off to cut costs D) have the government increase its demand for goods and services Answer: D Diff: 2 Type: MC Page Ref: 17 57) The primary ...
A Comparison of Twelve Macroeconomic Models
... the performance of some of the simple rules, particularly interest-rate-smoothing rules and rules that have a high coefficient on the inflation gap, can deviate substantially from the optimal rule and can even be unstable in some models.2 Our results are thus very different from those of Levin, Wiel ...
... the performance of some of the simple rules, particularly interest-rate-smoothing rules and rules that have a high coefficient on the inflation gap, can deviate substantially from the optimal rule and can even be unstable in some models.2 Our results are thus very different from those of Levin, Wiel ...
Document
... The Multiplier and the Price Level (2 of 14) • Aggregate Expenditure and Aggregate Demand ‒ The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. ‒ The aggregate demand c ...
... The Multiplier and the Price Level (2 of 14) • Aggregate Expenditure and Aggregate Demand ‒ The aggregate expenditure curve is the relationship between aggregate planned expenditure and real GDP, with all other influences on aggregate planned expenditure remaining the same. ‒ The aggregate demand c ...
13.1 money and the interest rate
... nominal interest rate falls. But eventually, the nominal interest rate returns to its long-run equilibrium level and the price level rises by 2 percent. Figure 13.5 on the next slide illustrates this outcome. ...
... nominal interest rate falls. But eventually, the nominal interest rate returns to its long-run equilibrium level and the price level rises by 2 percent. Figure 13.5 on the next slide illustrates this outcome. ...
answer key - U of L Personal Web Sites
... 38. If a family's expenditures increase from $25,000 to $30,000 per year when its income increases from $30,000 to $37,500, its autonomous expenditures A) do not change. B) equal $5,000. C) increase by $7,500. D) change by an amount that cannot be determined without more information. Ans: A 39. The ...
... 38. If a family's expenditures increase from $25,000 to $30,000 per year when its income increases from $30,000 to $37,500, its autonomous expenditures A) do not change. B) equal $5,000. C) increase by $7,500. D) change by an amount that cannot be determined without more information. Ans: A 39. The ...
secondary school improvement programme (ssip) 2015 - Sci
... bigger repayment instalments. This may indicate that the business cycle could be heading for a downward cycle, businesses might have to cut down production, unemployment may increase and economic growth will decline. ...
... bigger repayment instalments. This may indicate that the business cycle could be heading for a downward cycle, businesses might have to cut down production, unemployment may increase and economic growth will decline. ...
Please click here to see Table 3 - Association for the Study of the
... store of value in the midst of shortages. It is also argued that in the presence of the chronic shortages, the households amass monetary balances as a precaution, artificially increasing their savings rate. The end result of the discussion between the two schools is that the size of the forced savin ...
... store of value in the midst of shortages. It is also argued that in the presence of the chronic shortages, the households amass monetary balances as a precaution, artificially increasing their savings rate. The end result of the discussion between the two schools is that the size of the forced savin ...
Slide 1
... services and sticky nominal wages. On one side, some nominal wages are in fact flexible even in the short run because some workers are not covered by a contract or informal agreement with their employers. Since some nominal wages are sticky but others are flexible, we observe that the average nomina ...
... services and sticky nominal wages. On one side, some nominal wages are in fact flexible even in the short run because some workers are not covered by a contract or informal agreement with their employers. Since some nominal wages are sticky but others are flexible, we observe that the average nomina ...
4. Expansionary gaps tend to raise inflation, and recessionary gaps
... 1. Since 1870 real GDP per person has grown more than tenfold in the U.S. and many other industrial countries; and by 25-fold in Japan. These large increases in output per person have led to substantial increases in the material standard of living of the average person in these countries. By contras ...
... 1. Since 1870 real GDP per person has grown more than tenfold in the U.S. and many other industrial countries; and by 25-fold in Japan. These large increases in output per person have led to substantial increases in the material standard of living of the average person in these countries. By contras ...
Lecture Outline
... 1. How fiscal policy influences aggregate demand (Output and price level) 2. How monetary policy influences aggregate demand (Output and price level) 3. Do other government policies affect output and price level? (The case of minimum wage law) 4. Monetary policy 5. Inflation and deflation (quantity ...
... 1. How fiscal policy influences aggregate demand (Output and price level) 2. How monetary policy influences aggregate demand (Output and price level) 3. Do other government policies affect output and price level? (The case of minimum wage law) 4. Monetary policy 5. Inflation and deflation (quantity ...
Unit F582 - The national and international economy - January
... the policy measure. For 13 – 15 marks, a discussion which does evaluate but which lacks some depth or is relatively narrowly focused. Complex ideas have been expressed clearly and fluently, using a style of writing appropriate to complex subject matter. Sentences and paragraphs, consistently relevan ...
... the policy measure. For 13 – 15 marks, a discussion which does evaluate but which lacks some depth or is relatively narrowly focused. Complex ideas have been expressed clearly and fluently, using a style of writing appropriate to complex subject matter. Sentences and paragraphs, consistently relevan ...
Money, inflation and interest rates
... from the central bank (rather than from other banks through the FFR) and they will do so when in need of reserves. The discount window though, for a variety of reasons, is rarely used by commercial banks so this rate is not a very relevant instrument. For more details on monetary policy in US and in ...
... from the central bank (rather than from other banks through the FFR) and they will do so when in need of reserves. The discount window though, for a variety of reasons, is rarely used by commercial banks so this rate is not a very relevant instrument. For more details on monetary policy in US and in ...
150 Years of Boom and Bust - Federal Reserve Bank of Dallas
... Copper-specific demand shocks and supply shocks also affected prices over that period. In the late 19th century, the Amalgamated Copper Company, which controlled about one fifth of world copper production, and a number of other firms tried to stabilize the price of copper by withholding stocks from ...
... Copper-specific demand shocks and supply shocks also affected prices over that period. In the late 19th century, the Amalgamated Copper Company, which controlled about one fifth of world copper production, and a number of other firms tried to stabilize the price of copper by withholding stocks from ...
Final Lecture ppts on national income
... weighted average) of prices for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations. Price indices have several potential use ...
... weighted average) of prices for a given class of goods or services in a given region, during a given interval of time. It is a statistic designed to help to compare how these prices, taken as a whole, differ between time periods or geographical locations. Price indices have several potential use ...
QA F582 National Economy
... Why can increasing wealth increase consumption? Many households have a target level of wealth they want to hold eg £100,000. Any increase in the value of assets means they can sell some of their shares or remortgage their house, increase consumption and still retain the same level of wealth. What is ...
... Why can increasing wealth increase consumption? Many households have a target level of wealth they want to hold eg £100,000. Any increase in the value of assets means they can sell some of their shares or remortgage their house, increase consumption and still retain the same level of wealth. What is ...
IS-LM
... 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were correct, since the 1973–1974 shock seems to have ...
... 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were correct, since the 1973–1974 shock seems to have ...
DP2008/09 Analysing shock transmission in a data-rich Chris Bloor and Troy Matheson
... that have been transformed to achieve stationarity, destroying the potential influence of long-run, cointegrating relationships. For this reason, this paper focuses on a Bayesian approach for analysing the impact of shocks for New Zealand, leaving the analysis of factor-augmented VARs for future wor ...
... that have been transformed to achieve stationarity, destroying the potential influence of long-run, cointegrating relationships. For this reason, this paper focuses on a Bayesian approach for analysing the impact of shocks for New Zealand, leaving the analysis of factor-augmented VARs for future wor ...
PDF Download
... previous contributions rests on the assumption that Premises 1-3 hold simultaneously. We demonstrate why this is critical for understanding the dynamics of housing wealth in the long run. Most importantly, we capture an important stylized fact of long run house price dynamics. Knoll et al. (2014) ha ...
... previous contributions rests on the assumption that Premises 1-3 hold simultaneously. We demonstrate why this is critical for understanding the dynamics of housing wealth in the long run. Most importantly, we capture an important stylized fact of long run house price dynamics. Knoll et al. (2014) ha ...
Which of the following combinations of economic policies would be
... d. The optimism of business firms e. The per unit cost of production 41. The aggregate demand curve is downward sloping because an increase in the general price level will cause the demand for money, interest rates, and investment to change in which of the following ways? Demand Interest for Money R ...
... d. The optimism of business firms e. The per unit cost of production 41. The aggregate demand curve is downward sloping because an increase in the general price level will cause the demand for money, interest rates, and investment to change in which of the following ways? Demand Interest for Money R ...
Standard trade model
... – are downward sloping — if you have less cloth, then you must have more food to be equally satisfied. – that lie farther from the origin make consumers more satisfied — they prefer having more of both goods. – become flatter when they move to the right — with more cloth and less food, an extra yard ...
... – are downward sloping — if you have less cloth, then you must have more food to be equally satisfied. – that lie farther from the origin make consumers more satisfied — they prefer having more of both goods. – become flatter when they move to the right — with more cloth and less food, an extra yard ...