Answers to Text Questions and Problems in
... 5. Although the AD-AS model shows a self-correcting economy, a recessionary gap will take time to be eliminated. Therefore, expansionary macroeconomic policy can be used to eliminate the recessionary gap more quickly. 6. Stagflation is caused by an adverse price shock that shifts up the SRAS curve, ...
... 5. Although the AD-AS model shows a self-correcting economy, a recessionary gap will take time to be eliminated. Therefore, expansionary macroeconomic policy can be used to eliminate the recessionary gap more quickly. 6. Stagflation is caused by an adverse price shock that shifts up the SRAS curve, ...
Dynamics of Food Price Trends and Policy Options in Ethiopia
... So far, there is no consensus on why Ethiopia experienced such high food price surges. The puzzle is that the increase in inflation in the recent years coincided with relatively favorable harvests, whereas in the past inflation Ethiopia had typically been associated with agricultural supply shocks d ...
... So far, there is no consensus on why Ethiopia experienced such high food price surges. The puzzle is that the increase in inflation in the recent years coincided with relatively favorable harvests, whereas in the past inflation Ethiopia had typically been associated with agricultural supply shocks d ...
Business Cycles and Oil Price Fluctuations: Some Evidence
... exporters. For an oil exporting country, various kinds of frictions and misallocation of resources may dampen the positive stimulus on the activity level stemming from an increase in the oil price. These effects are closely related to the phenomena discussed in the literature under the name of "dutc ...
... exporters. For an oil exporting country, various kinds of frictions and misallocation of resources may dampen the positive stimulus on the activity level stemming from an increase in the oil price. These effects are closely related to the phenomena discussed in the literature under the name of "dutc ...
PDF
... Although specific crop elasticities reflect inter-crop shifts in resources and are not particularly large, they are of considerable policy interest. A steady deterioration in the relative price of cash crops can, for example, bring about significant long-run reductions in their production relative t ...
... Although specific crop elasticities reflect inter-crop shifts in resources and are not particularly large, they are of considerable policy interest. A steady deterioration in the relative price of cash crops can, for example, bring about significant long-run reductions in their production relative t ...
Natural Disasters
... miles east of New Orleans, Louisiana. Katrina caused waters to rise and pressure to build until the levees protecting the city of New Orleans from the waters of Lake Pontchartrain and the Mississippi River collapsed. Flooding occurred throughout most of the city, leaving more than 1,000 people dead. ...
... miles east of New Orleans, Louisiana. Katrina caused waters to rise and pressure to build until the levees protecting the city of New Orleans from the waters of Lake Pontchartrain and the Mississippi River collapsed. Flooding occurred throughout most of the city, leaving more than 1,000 people dead. ...
(July-September) of 2016-17 - Ministry of Statistics and Programme
... The second quarter estimates are based on agricultural production during Kharif season of 2016-17 obtained from the Ministry of Agriculture, Department of Agriculture & Cooperation(DAC), abridged financial results of listed companies from BSE/NSE, Index of Industrial Production (IIP), monthly accoun ...
... The second quarter estimates are based on agricultural production during Kharif season of 2016-17 obtained from the Ministry of Agriculture, Department of Agriculture & Cooperation(DAC), abridged financial results of listed companies from BSE/NSE, Index of Industrial Production (IIP), monthly accoun ...
Menu Costs and Phillips Curves
... is that the assumption of a constant repricing rate cannot fit the fact that repricing is more frequent in high-inflation environments. But a second, more important, reason was discovered by Caplin and Spulber (1987), who constructed a theoretical example of an economy with menu costs in which only ...
... is that the assumption of a constant repricing rate cannot fit the fact that repricing is more frequent in high-inflation environments. But a second, more important, reason was discovered by Caplin and Spulber (1987), who constructed a theoretical example of an economy with menu costs in which only ...
Menu Costs and Phillips Curves - The University of Chicago Booth
... is that the assumption of a constant repricing rate cannot fit the fact that repricing is more frequent in high-inflation environments. But a second, more important, reason was discovered by Caplin and Spulber (1987), who constructed a theoretical example of an economy with menu costs in which only ...
... is that the assumption of a constant repricing rate cannot fit the fact that repricing is more frequent in high-inflation environments. But a second, more important, reason was discovered by Caplin and Spulber (1987), who constructed a theoretical example of an economy with menu costs in which only ...
PPT
... barrel to less than $13 a barrel. The result: gasoline prices were lower than they had been in over 50 years. In 2005, oil prices shot up to $60 a barrel. • Reason: increased demand throughout the world, particularly in fastgrowing countries such as China and India. • Result: the economy appeared to ...
... barrel to less than $13 a barrel. The result: gasoline prices were lower than they had been in over 50 years. In 2005, oil prices shot up to $60 a barrel. • Reason: increased demand throughout the world, particularly in fastgrowing countries such as China and India. • Result: the economy appeared to ...
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations
... – supplies of capital, labor – technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
... – supplies of capital, labor – technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations
... – supplies of capital, labor – technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
... – supplies of capital, labor – technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations
... Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
... Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations
... Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
... Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
1.4 Aggregate Supply
... • An increase in prices shifts the LM curve to the left • Increase in the transactions velocity of circulation (vt) will make the LM flatter e.g. financial innovation such as credit cards meaning that there is a rise in the number of units of income that one unit of transaction balances can finance. ...
... • An increase in prices shifts the LM curve to the left • Increase in the transactions velocity of circulation (vt) will make the LM flatter e.g. financial innovation such as credit cards meaning that there is a rise in the number of units of income that one unit of transaction balances can finance. ...
NBER WORKING PAPER SERIES James D. Hamilton Working Paper 15002
... the price would no longer be physically possible. The low expenditure share in the early part of this decade may be part of the explanation for why Americans were largely ignoring the early price increases— we didn’t change our behavior much because most of us could afford not to. By 2007-08, however ...
... the price would no longer be physically possible. The low expenditure share in the early part of this decade may be part of the explanation for why Americans were largely ignoring the early price increases— we didn’t change our behavior much because most of us could afford not to. By 2007-08, however ...
1 Sample Questions for Microeconomics 1. Which of the following is
... a. The central bank should increase the nation's money supply. b. The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. d. The local government ought to spen ...
... a. The central bank should increase the nation's money supply. b. The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. d. The local government ought to spen ...
AP MACRO-MR. LIPMAN KRUGMAN`S UNIT 4
... • Firms that increase inventories are engaging in a form of investment spending. Higher than anticipated inventories due to a unplanned decrease in sales is known as unplanned inventory investment. • Investment (I) = I unplanned + I planned • Rising inventories typically indicates a slowing economy ...
... • Firms that increase inventories are engaging in a form of investment spending. Higher than anticipated inventories due to a unplanned decrease in sales is known as unplanned inventory investment. • Investment (I) = I unplanned + I planned • Rising inventories typically indicates a slowing economy ...
Mankiw 5/e Chapter 9: Intro to Economic Fluctuations
... – supplies of capital, labor – technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
... – supplies of capital, labor – technology Changes in demand for goods & services (C, I, G ) only affect prices, not quantities. Complete price flexibility is a crucial assumption, so classical theory applies in the long run. CHAPTER 9 ...
Causes and Consequences of the Oil Shock of 2007-08*
... the price would no longer be physically possible. The low expenditure share in the early part of this decade may be part of the explanation for why Americans were largely ignoring the early price increases— we didn’t change our behavior much because most of us could afford not to. By 2007-08, however ...
... the price would no longer be physically possible. The low expenditure share in the early part of this decade may be part of the explanation for why Americans were largely ignoring the early price increases— we didn’t change our behavior much because most of us could afford not to. By 2007-08, however ...
Aggregate Demand
... How do policy actions by the government and the Federal Reserve affect output and prices? To answer the applied questions we need to answer first the following theoretical questions: How is GDP determined in the short-run? How is the price level determined in the short-run? ...
... How do policy actions by the government and the Federal Reserve affect output and prices? To answer the applied questions we need to answer first the following theoretical questions: How is GDP determined in the short-run? How is the price level determined in the short-run? ...
Economics 100 Assignment #1 Name
... (2) In April of 1995, the television show 60 Minutes had a feature on a small town in Vermont. The town was one of many towns that were trying the stop Wal-Mart from opening a store ten miles outside of town. (Wal-Mart used to locate primarily in rural areas.) The town was complaining that Wal-Mart ...
... (2) In April of 1995, the television show 60 Minutes had a feature on a small town in Vermont. The town was one of many towns that were trying the stop Wal-Mart from opening a store ten miles outside of town. (Wal-Mart used to locate primarily in rural areas.) The town was complaining that Wal-Mart ...
ECON 545 Week 6 Quiz
... gasoline in response to either short-run or long-run price increase. The relative inflexibility of consumer demand for gasoline makes consumers more vulnerable to substantial gasoline price increases. This inability to substitute other products for gasoline in the short-run at the retail level resul ...
... gasoline in response to either short-run or long-run price increase. The relative inflexibility of consumer demand for gasoline makes consumers more vulnerable to substantial gasoline price increases. This inability to substitute other products for gasoline in the short-run at the retail level resul ...
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... value of the parameter which represents the probability of a …rm not changing its price in period t. If = 0 all prices are perfectly ‡exible and each …rm can respond immediately to changes in the aggregate environment. Since all …rms are by assumption equal they will choose the same price and will e ...
... value of the parameter which represents the probability of a …rm not changing its price in period t. If = 0 all prices are perfectly ‡exible and each …rm can respond immediately to changes in the aggregate environment. Since all …rms are by assumption equal they will choose the same price and will e ...
Asymmetric Effects of Oil Prices on the Manufacturing Sector in Turkey
... studies have achieved remarkable progress in explaining the dynamics for the U.S. and other developed economies1 , there are relatively few studies devoted to developed economies, and almost none to oil-importing small open economies such as Turkey. Turkish economy distinguishes from the U.S. and ot ...
... studies have achieved remarkable progress in explaining the dynamics for the U.S. and other developed economies1 , there are relatively few studies devoted to developed economies, and almost none to oil-importing small open economies such as Turkey. Turkish economy distinguishes from the U.S. and ot ...
economics ( hsc practice questions)
... State giving reasons whether the following statements are true or false:1. The degree of responsiveness of demand to the change in the price of the commodity is called elasticity of demand. 2. Total expenditure method is also called the total outlay method. 3. Demand for life saving medicines is hig ...
... State giving reasons whether the following statements are true or false:1. The degree of responsiveness of demand to the change in the price of the commodity is called elasticity of demand. 2. Total expenditure method is also called the total outlay method. 3. Demand for life saving medicines is hig ...
2000s commodities boom
The 2000s commodities boom or the commodities super cycle was the rise in many physical commodity prices (such as those of food stuffs, oil, metals, chemicals, fuels and the like) which occurred during the decade of the 2000s (2000–2009), following the Great Commodities Depression of the 1980s and 1990s. The boom was largely due to the rising demand from emerging markets such as the BRIC countries, as well as the result of concerns over long-term supply availability. There was a sharp down-turn in prices during 2008 and early 2009 as a result of the credit crunch and sovereign debt crisis, but prices began to rise as demand recovered from late 2009 to mid-2010. Oil began to slip downwards after mid-2010, but peaked at $101.80 on 30 and 31 January 2011, as then Egyptian political crisis and rioting broke out, leading to concerns over both the safe use of the Suez Canal and over all security in Arabia itself. On 3 March, Libya's National Oil Corp said that output had halved due to the departure of foreign workers. As this happened, Brent Crude surged to a new high of above $116.00 a barrel as supply disruptions and potential for more unrest in the Middle East and North Africa continued to worry investors. Thus the price of oil kept rising into the 2010s. The commodities super-cycle peaked in 2011, ""driven by a combination of strong demand from emerging nations and low supply growth."" Prior to 2002, only 5 to 10 per cent of trading in the commodities market was attributable to investors. Since 2002 ""30 per cent of trading is attributable to investors in the commodities market"" which ""has caused higher price volatility.""