macroeconomics
... business cycle The cycle of short-term ups and downs in the economy. The main measure of how an economy is doing is aggregate output: aggregate output The total quantity of goods and services produced in an economy in a given period. recession A period during which aggregate output declines. Convent ...
... business cycle The cycle of short-term ups and downs in the economy. The main measure of how an economy is doing is aggregate output: aggregate output The total quantity of goods and services produced in an economy in a given period. recession A period during which aggregate output declines. Convent ...
Allied Social Science Associations meetings Boston, MA, January 3
... high inflation in the early 1970s into the period of the Great Depression of the early 1930s, the ‘wage-theorem’ would imply that under certain conditions, such as proportionality of total marginal costs to wage costs and perfect competition on goods markets, decreases in money wages would lead to p ...
... high inflation in the early 1970s into the period of the Great Depression of the early 1930s, the ‘wage-theorem’ would imply that under certain conditions, such as proportionality of total marginal costs to wage costs and perfect competition on goods markets, decreases in money wages would lead to p ...
The Unemployment Bias of the New Consensus View of
... (Y-Y*). Aggregate demand and therefore stabilization policies are neutral in the long run (Fontana, 2007). In fact, this long-run neutrality of aggregate demand raises an interesting conundrum for modern central bankers. “Given the central bank claim that, in the medium and longer run, their influen ...
... (Y-Y*). Aggregate demand and therefore stabilization policies are neutral in the long run (Fontana, 2007). In fact, this long-run neutrality of aggregate demand raises an interesting conundrum for modern central bankers. “Given the central bank claim that, in the medium and longer run, their influen ...
Deflation: Determinants, Risks and Policy Options -- Findings
... 1. There has recently been a marked increase in concerns of a generalized decline in prices in both industrial and emerging market economies. With Japan, China, and several other Asian economies already experiencing declining prices, the worry has been that deflationary pressures could deepen, and e ...
... 1. There has recently been a marked increase in concerns of a generalized decline in prices in both industrial and emerging market economies. With Japan, China, and several other Asian economies already experiencing declining prices, the worry has been that deflationary pressures could deepen, and e ...
Money and Information in a New Neoclassical Synthesis Framework
... the size and the nature of shocks hitting it. We establish the informational value of money by estimating a small scale structural sticky price model and show that the potential output estimate improves considerably in terms of precision as compared to a conventional sticky price model—with no role ...
... the size and the nature of shocks hitting it. We establish the informational value of money by estimating a small scale structural sticky price model and show that the potential output estimate improves considerably in terms of precision as compared to a conventional sticky price model—with no role ...
Document
... help determine the extent to which increases in aggregate demand lead to increases in real output (economics)|output or instead to increases in prices (inflation). In the diagram, an increase in any of the components of 'AD' (at any given 'P') shifts the 'AD' curve to the right. This increases both ...
... help determine the extent to which increases in aggregate demand lead to increases in real output (economics)|output or instead to increases in prices (inflation). In the diagram, an increase in any of the components of 'AD' (at any given 'P') shifts the 'AD' curve to the right. This increases both ...
The Transmission of Monetary Policy Operations through
... We also study expansions in the size of the balance sheet, akin to “helicopter drops,” i.e., tax cuts financed by an increase in the money supply, and analyse di§erences in the macroeconomic impact of these two policies. In contrast to OMO, expansionary helicopter drops that generate a comparable f ...
... We also study expansions in the size of the balance sheet, akin to “helicopter drops,” i.e., tax cuts financed by an increase in the money supply, and analyse di§erences in the macroeconomic impact of these two policies. In contrast to OMO, expansionary helicopter drops that generate a comparable f ...
Fina 353-Lecture Slide Week 4
... • Nominal GDP is GDP measured in current Saudi Riyal, or the current prices we pay for final goods and services. When a variable is measured in current prices, it is described in nominal terms. • Real GDP is the value of a nation's total final goods and services, adjusted for price changes. It value ...
... • Nominal GDP is GDP measured in current Saudi Riyal, or the current prices we pay for final goods and services. When a variable is measured in current prices, it is described in nominal terms. • Real GDP is the value of a nation's total final goods and services, adjusted for price changes. It value ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... labor market eliminates unemployment and restores its equilibrium? a. The equilibrium wage rises above the wage that prevailed when there was unemployment. b. As it moves toward equilibrium, the market experiences an increase in the quantity of labor demanded and a decrease in the quantity supplied. ...
... labor market eliminates unemployment and restores its equilibrium? a. The equilibrium wage rises above the wage that prevailed when there was unemployment. b. As it moves toward equilibrium, the market experiences an increase in the quantity of labor demanded and a decrease in the quantity supplied. ...
Real GDP
... 1. To know that how much the economy is actually producing. It means to compute economic growth, known as the GDP growth rate. The computed growth rate is using to compare the standard of living over time. 2. To compare the size of economies throughout the world. That means to compare the standard o ...
... 1. To know that how much the economy is actually producing. It means to compute economic growth, known as the GDP growth rate. The computed growth rate is using to compare the standard of living over time. 2. To compare the size of economies throughout the world. That means to compare the standard o ...
Real GDP
... 1. To know that how much the economy is actually producing. It means to compute economic growth, known as the GDP growth rate. The computed growth rate is using to compare the standard of living over time. 2. To compare the size of economies throughout the world. That means to compare the standard o ...
... 1. To know that how much the economy is actually producing. It means to compute economic growth, known as the GDP growth rate. The computed growth rate is using to compare the standard of living over time. 2. To compare the size of economies throughout the world. That means to compare the standard o ...
The Aggregate
... In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and the misperceptio ...
... In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and the misperceptio ...
measuring GDP
... currency units as the real GDP of the other country, so an exchange rate must be used. ...
... currency units as the real GDP of the other country, so an exchange rate must be used. ...
File
... • When unemployment is low, firms compete for workers and bid up wages sharply. • When unemployment is high, it is more difficult for firms to cut wages because workers tend to resist wage cuts. Result: Even if the total unemployment rate in the country appears to be at the natural rate of unemploym ...
... • When unemployment is low, firms compete for workers and bid up wages sharply. • When unemployment is high, it is more difficult for firms to cut wages because workers tend to resist wage cuts. Result: Even if the total unemployment rate in the country appears to be at the natural rate of unemploym ...
Inflation and the Role of Macroeconomic Policy in Ethiopia
... foreign trade, stabilizing exchange and interest rates, etc and in general attaining stable and well functioning macro-economic environment. In this process, monetary policy plays a central role. For instance, during economic recession where output falls with a fall in aggregate demand, monetary pol ...
... foreign trade, stabilizing exchange and interest rates, etc and in general attaining stable and well functioning macro-economic environment. In this process, monetary policy plays a central role. For instance, during economic recession where output falls with a fall in aggregate demand, monetary pol ...
Outlook for Economic Activity and Prices (April 2016, full text)
... will exert downward pressure on consumer prices. The past yen depreciation is likely to continue to have positive effects on CPI inflation indirectly through an improvement in the output gap and a rise in inflation expectations, while its direct positive effects are likely to wane gradually. III. Up ...
... will exert downward pressure on consumer prices. The past yen depreciation is likely to continue to have positive effects on CPI inflation indirectly through an improvement in the output gap and a rise in inflation expectations, while its direct positive effects are likely to wane gradually. III. Up ...
Remarks by Governor Ben S. Bernanke At the meetings of the
... from excessive "output optimism" and "inflation pessimism." The output optimism of the late 1960s and the 1970s had several aspects. First, at least during the early part of that period, many economists and policymakers held the view that policy could exploit a permanent tradeoff between inflation a ...
... from excessive "output optimism" and "inflation pessimism." The output optimism of the late 1960s and the 1970s had several aspects. First, at least during the early part of that period, many economists and policymakers held the view that policy could exploit a permanent tradeoff between inflation a ...
Research Paper 2011/08 Modeling the Inflation
... The advantage of the GETS approach lies in its ability to deliver results based on underlying economic theories of inflation, which are also consistent with the properties of the data. The general model is specified as follows: ...
... The advantage of the GETS approach lies in its ability to deliver results based on underlying economic theories of inflation, which are also consistent with the properties of the data. The general model is specified as follows: ...
Technical Appendix 1 to accompany Working
... growth rates of indicator series. For the earlier years, the growth of total billings by the computer services industry was used. Years after 1995 used the growth of the wage bill of full-time programmers, computer engineers and managers in the computer services industry. The growth rate of software ...
... growth rates of indicator series. For the earlier years, the growth of total billings by the computer services industry was used. Years after 1995 used the growth of the wage bill of full-time programmers, computer engineers and managers in the computer services industry. The growth rate of software ...
Principles of Economics, Case and Fair,9e
... also purchase foreign-made goods and services (imports). Firms receive payments from households and the government for goods and services; they pay wages, dividends, interest, and rents to households and taxes to the government. The government receives taxes from firms and households, pays firms and ...
... also purchase foreign-made goods and services (imports). Firms receive payments from households and the government for goods and services; they pay wages, dividends, interest, and rents to households and taxes to the government. The government receives taxes from firms and households, pays firms and ...
Spending, Income and Gross Domestic Product
... GDP measures how much an economy produces in a given period, such as a quarter or a year. Because one cannot add “apples and oranges,” GDP is constructed by adding together the market value of apples and oranges. GDP avoids double counting by only counting the value of final goods and services. Econ ...
... GDP measures how much an economy produces in a given period, such as a quarter or a year. Because one cannot add “apples and oranges,” GDP is constructed by adding together the market value of apples and oranges. GDP avoids double counting by only counting the value of final goods and services. Econ ...