EC827_B2
... – Given the supply of nominal money (M) and the price level (P), there is some practical (real) level of money circulating in society. If either the amount of nominal money rises or the price level falls, the “value” of the amount of money in circulation will go up. Copyright 1998 R.H. Rasche ...
... – Given the supply of nominal money (M) and the price level (P), there is some practical (real) level of money circulating in society. If either the amount of nominal money rises or the price level falls, the “value” of the amount of money in circulation will go up. Copyright 1998 R.H. Rasche ...
Charles I. Plosser Robert G. King Working Paper No. 853 1050
... The transaction (banking) industry, however, usually provides these services in conjunction with portfolio management or intermediary services. That is, the industry maintains claims on the probability distribution of output ("loans") and issues other claims ("deposits"). ...
... The transaction (banking) industry, however, usually provides these services in conjunction with portfolio management or intermediary services. That is, the industry maintains claims on the probability distribution of output ("loans") and issues other claims ("deposits"). ...
Macroeconomics/Northrop/Fall 2001/First Exam
... When deflating GDP, which price index is used? (2) What does it mean to be officially unemployed? (3) Define "real gross domestic product," indicating the meanings of both "real" and "GDP." (4) Distinguish (in the ways we did in the class) between the long run and the short run. (8) Briefly explain ...
... When deflating GDP, which price index is used? (2) What does it mean to be officially unemployed? (3) Define "real gross domestic product," indicating the meanings of both "real" and "GDP." (4) Distinguish (in the ways we did in the class) between the long run and the short run. (8) Briefly explain ...
The Future of Monetary Policy - Federal Reserve Bank of Minneapolis
... have argued that we had to abandon the assumptions of clearing markets and optimizing agents. James Tobin (1947), for example, assumed that agents were "irrational" in the labor markets. He recognized that such agents were incompatible with optimizing agents, but he contended that the only way to c ...
... have argued that we had to abandon the assumptions of clearing markets and optimizing agents. James Tobin (1947), for example, assumed that agents were "irrational" in the labor markets. He recognized that such agents were incompatible with optimizing agents, but he contended that the only way to c ...
Chapter 5 - Dr. George Fahmy
... The annual rate of change in the CPI is the change in an index between two years relative to the value of the index in the first of these two years. For example, the rate of inflation in 1990 is 5.4% which is the change in the CPI between 1990 and 1989 (6.7= 130.7 -124.0) divided by the 1989 index ...
... The annual rate of change in the CPI is the change in an index between two years relative to the value of the index in the first of these two years. For example, the rate of inflation in 1990 is 5.4% which is the change in the CPI between 1990 and 1989 (6.7= 130.7 -124.0) divided by the 1989 index ...
Macro Sample Exam Questions
... Skill: Level 4: Applying models Section: Checkpoint 28 27) State how each of the following affect the aggregate demand curve. a. The price level increases. b. Consumers expect higher inflation in the future. c. The exchange rate rises. d. Foreign income decreases. Topic: Changes in aggregate demand ...
... Skill: Level 4: Applying models Section: Checkpoint 28 27) State how each of the following affect the aggregate demand curve. a. The price level increases. b. Consumers expect higher inflation in the future. c. The exchange rate rises. d. Foreign income decreases. Topic: Changes in aggregate demand ...
Chapter 27 Economic Policy
... 4. The traditional tools of fiscal and monetary policy are not successful in reducing stagflation. This is because either tool can reduce inflation by reducing aggregate demand, but the cost is more unemployment. 5. Classical economists believe that the economy always achieves equilibrium at full em ...
... 4. The traditional tools of fiscal and monetary policy are not successful in reducing stagflation. This is because either tool can reduce inflation by reducing aggregate demand, but the cost is more unemployment. 5. Classical economists believe that the economy always achieves equilibrium at full em ...
Instability of capitalism inflation, unemployment, and business cycles*
... provided different explanations for the instability of capitalism. Marx [1967] contends that capitalists aim at maximizing the surplus value and the rate of profit. As they expect a high rate of profit they will invest and produce commodities. Capitalists will hire workers to implement the productio ...
... provided different explanations for the instability of capitalism. Marx [1967] contends that capitalists aim at maximizing the surplus value and the rate of profit. As they expect a high rate of profit they will invest and produce commodities. Capitalists will hire workers to implement the productio ...
aggregate-supply curve
... • All of this previous analysis was based on two related ideas—the classical dichotomy and monetary neutrality. • Most economists believe that classical theory describes the world in the long run but not in the short run. • According to classical macroeconomic theory, Changes in the money supply aff ...
... • All of this previous analysis was based on two related ideas—the classical dichotomy and monetary neutrality. • Most economists believe that classical theory describes the world in the long run but not in the short run. • According to classical macroeconomic theory, Changes in the money supply aff ...
Lesson 8 - ECO 151
... How much are you going to have to pay these workers to get them to do that? Most likely you will have to pay them more than they are currently making. As you bid up wages in the labor market to attract additional workers, prices in the economy will also rise, because now it costs more to produce you ...
... How much are you going to have to pay these workers to get them to do that? Most likely you will have to pay them more than they are currently making. As you bid up wages in the labor market to attract additional workers, prices in the economy will also rise, because now it costs more to produce you ...
Paper (marking scheme)
... When a producer sells several products the quantity of any one good it is willing to supply at any given price depends on the prices of its other co-produced goods. Example: Oil refinery produces gasoline from crude oil but it also produces heating oil and other products from the same raw material. ...
... When a producer sells several products the quantity of any one good it is willing to supply at any given price depends on the prices of its other co-produced goods. Example: Oil refinery produces gasoline from crude oil but it also produces heating oil and other products from the same raw material. ...
Energy Prices and Short-Run Economic Performance
... When the relative price of energy resources increases, the aggregate supply curve shifts to S’S’. The employment of existing labor and capital with a given nominal wage rate requires a higher general price for output, if sufficient amounts of the higher-cost energy resources are to be used, Of parti ...
... When the relative price of energy resources increases, the aggregate supply curve shifts to S’S’. The employment of existing labor and capital with a given nominal wage rate requires a higher general price for output, if sufficient amounts of the higher-cost energy resources are to be used, Of parti ...
ECON 203: Multiple Choice Questions 1. If a
... 42. A rise in interest rates caused by a change in the general price level would cause a(n): (a) increase in aggregate expenditure and a movement along the AD curve. (b) increase in aggregate expenditure and a rightward shift in the AD curve. (c) decrease in aggregate expenditure and a movement alon ...
... 42. A rise in interest rates caused by a change in the general price level would cause a(n): (a) increase in aggregate expenditure and a movement along the AD curve. (b) increase in aggregate expenditure and a rightward shift in the AD curve. (c) decrease in aggregate expenditure and a movement alon ...
AND DYNAMIC ADJUSTMENT OF EXPORTS AND WAGES Working Paper No. 2078
... from profits in exports. With this latter sector in fixed supply output can only ...
... from profits in exports. With this latter sector in fixed supply output can only ...
Microfoundations - EUR RePub - Erasmus Universiteit Rotterdam
... Prescott (1982)) looked at technology shocks to explain cyclical behavior. Thus, an important difference between the Lucas-Rapping approach and early real business cycle models is that the former, but not the latter, introduces frictions to explain business cycles. With these new classical models, t ...
... Prescott (1982)) looked at technology shocks to explain cyclical behavior. Thus, an important difference between the Lucas-Rapping approach and early real business cycle models is that the former, but not the latter, introduces frictions to explain business cycles. With these new classical models, t ...
Despite all this, the public sector could play an important role in
... period was about (31.3%) which is a very large percentage. Therefore it is natural that this situation must grow sadly, after 1990, due to economic sanctions and government debt (issuing money in high rates to cover its budget deficits), which led to huge increases in aggregate demand surpluses, as ...
... period was about (31.3%) which is a very large percentage. Therefore it is natural that this situation must grow sadly, after 1990, due to economic sanctions and government debt (issuing money in high rates to cover its budget deficits), which led to huge increases in aggregate demand surpluses, as ...
The Science of Macroeconomics
... What Macroeconomists Study • What can government policy do to help an economy recover from a slump? • How do we know whether the amount of money that has been printed is too much, too little, or just enough? • Should China keep the value of the yuan fixed with respect to the US dollar? • Why has th ...
... What Macroeconomists Study • What can government policy do to help an economy recover from a slump? • How do we know whether the amount of money that has been printed is too much, too little, or just enough? • Should China keep the value of the yuan fixed with respect to the US dollar? • Why has th ...
By Alvaro Cencini* Introduction The aim of this paper is not to
... In fact, Keynesian econometric models did already incorporate a demand for money function and ‘could easily enough be accommodated’ (ibid.: 335) in order to account for a more stable relationship. Likewise, ‘large-scale Keynesian econometric systems proved easily able to absorb monetarist ideas’ (i ...
... In fact, Keynesian econometric models did already incorporate a demand for money function and ‘could easily enough be accommodated’ (ibid.: 335) in order to account for a more stable relationship. Likewise, ‘large-scale Keynesian econometric systems proved easily able to absorb monetarist ideas’ (i ...
CENTRAL BANK OF THE REPUBLIC OF TURKEY
... Under free floating exchange rate regime; There is no anchor that the public opinion can follow closely. Therefore, inflation itself must be used as the most effective anchor in the inflation targeting system. Central Bank does not need to hold high international reserves for maintaining exchange ra ...
... Under free floating exchange rate regime; There is no anchor that the public opinion can follow closely. Therefore, inflation itself must be used as the most effective anchor in the inflation targeting system. Central Bank does not need to hold high international reserves for maintaining exchange ra ...
BU204_02 _JACKSON_EDWARD_mid
... c. Given your answer to part b and the information in the table, what do you think is the relationship between the level of involuntary unemployment and the level of the minimum wage? my answer: The higher the minimum wage, the larger the amount of involuntary unemployment. Who benefits from such a ...
... c. Given your answer to part b and the information in the table, what do you think is the relationship between the level of involuntary unemployment and the level of the minimum wage? my answer: The higher the minimum wage, the larger the amount of involuntary unemployment. Who benefits from such a ...