K7833E
... Supply response to price changes for tea and other perennial crops is not immediate but delayed over time as it requires investment decisions that have long term implications. It takes at least three years from planting before plucking can be carried out economically on a tea bush, by which time pri ...
... Supply response to price changes for tea and other perennial crops is not immediate but delayed over time as it requires investment decisions that have long term implications. It takes at least three years from planting before plucking can be carried out economically on a tea bush, by which time pri ...
Welfare Costs of Inflation in a Menu Cost Model
... the aggregation of price changes in individual firms maps into aggregate inflation (see, among many others, Mark Bils and Peter J. Klenow 2005). These facts about price movements are a key input in recent quantitative models of the aggregate effects of nominal rigidities (e.g. Mikhail Golosov and Rob ...
... the aggregation of price changes in individual firms maps into aggregate inflation (see, among many others, Mark Bils and Peter J. Klenow 2005). These facts about price movements are a key input in recent quantitative models of the aggregate effects of nominal rigidities (e.g. Mikhail Golosov and Rob ...
Not Dutch Disease, It`s China Syndrome
... with its exports. As a result, terms of trade adjusted real gross domestic product (GDP) measures have outpaced real GDP growth because the purchasing power of Canadian earnings has risen faster than the earnings themselves. ¾ What is the impact on employment? The resource boom is leading to a reall ...
... with its exports. As a result, terms of trade adjusted real gross domestic product (GDP) measures have outpaced real GDP growth because the purchasing power of Canadian earnings has risen faster than the earnings themselves. ¾ What is the impact on employment? The resource boom is leading to a reall ...
Revision – Inflation and deflation
... Deflationary demand-side policies may be used, but they will result in lower national output and are likely to cause unemployment to rise. Thus, demand-side policies are ineffective and supply-side policies are appropriate. However, when inflation does occur, it is difficult to distinguish between t ...
... Deflationary demand-side policies may be used, but they will result in lower national output and are likely to cause unemployment to rise. Thus, demand-side policies are ineffective and supply-side policies are appropriate. However, when inflation does occur, it is difficult to distinguish between t ...
The Business Cycle
... most prolonged departure from the long-term growth-path. Between 1929 and 1933, real GDP contracted a total of nearly 30%. In 1939, GDP per capita was lower than it had been in 1929. ...
... most prolonged departure from the long-term growth-path. Between 1929 and 1933, real GDP contracted a total of nearly 30%. In 1939, GDP per capita was lower than it had been in 1929. ...
Lower Bulk Commodity Prices and Their Effect
... prices for so-called ‘bulk’ commodities, which are iron ore and coking coal (both used in steel production), and thermal coal (used in energy production) (Graph 1). The declines follow large price increases over the 2000s, when growth in global demand for steel and energy, particularly from China, ...
... prices for so-called ‘bulk’ commodities, which are iron ore and coking coal (both used in steel production), and thermal coal (used in energy production) (Graph 1). The declines follow large price increases over the 2000s, when growth in global demand for steel and energy, particularly from China, ...
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... in significant gains in maize yields. In 2000-01, average production increased by 130 percent over the previous five-year average while producer prices fell to record lows, by as much as 80 percent in rural producer markets (Bonger, Gabre-Madhin, Babu, 2002). ...
... in significant gains in maize yields. In 2000-01, average production increased by 130 percent over the previous five-year average while producer prices fell to record lows, by as much as 80 percent in rural producer markets (Bonger, Gabre-Madhin, Babu, 2002). ...
solution - Ka
... Q8 Suppose the coffee lobby convinced the legislature to impose last year a price control requiring that coffee prices must be at least $2.50 when the original demand function and supply function were applicable. The most likely result with the new demand and supply would be A) a short term excess ...
... Q8 Suppose the coffee lobby convinced the legislature to impose last year a price control requiring that coffee prices must be at least $2.50 when the original demand function and supply function were applicable. The most likely result with the new demand and supply would be A) a short term excess ...
Classical economists assume that ______.
... Of the factors which contribute to the downward slope of the aggregate demand curve, which is best described as the incorporation of nominal exchange rates into the IS-LM model? ...
... Of the factors which contribute to the downward slope of the aggregate demand curve, which is best described as the incorporation of nominal exchange rates into the IS-LM model? ...
Factors affecting consumer behavior of purchasing tobacco products
... The effect of income change on demand is measured by income elasticity. An income elasticity of 0.2 indicates that when income increases by 10%, demand increases by 2% in a reasonable period of time that allows the consumers to adjust that tobacco use behavior. In effect, the growth in aggregate ...
... The effect of income change on demand is measured by income elasticity. An income elasticity of 0.2 indicates that when income increases by 10%, demand increases by 2% in a reasonable period of time that allows the consumers to adjust that tobacco use behavior. In effect, the growth in aggregate ...
CESifo Working Paper no. 4086 - Hans
... (i) the larger the growth rate of the country considered, (ii) the lower the interest rate (ii) and the larger the debt relief provided to the country in question. Unfortunately, the new Goldman Sachs study does not inform the reader about its growth assumptions. In last year's report (Goldman Sachs ...
... (i) the larger the growth rate of the country considered, (ii) the lower the interest rate (ii) and the larger the debt relief provided to the country in question. Unfortunately, the new Goldman Sachs study does not inform the reader about its growth assumptions. In last year's report (Goldman Sachs ...
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... (i) the larger the growth rate of the country considered, (ii) the lower the interest rate (ii) and the larger the debt relief provided to the country in question. Unfortunately, the new Goldman Sachs study does not inform the reader about its growth assumptions. In last year's report (Goldman Sachs ...
... (i) the larger the growth rate of the country considered, (ii) the lower the interest rate (ii) and the larger the debt relief provided to the country in question. Unfortunately, the new Goldman Sachs study does not inform the reader about its growth assumptions. In last year's report (Goldman Sachs ...
Economic Costs of America`s Dependence on Oil
... have increased by (0.75)(17.5%) = 13.1%. Such calculations suggest that, if the price of oil had not increased since 2004, and if world GDP had grown by the amount observed since then, oil consumption could have reached 93.4 mb/d in 2008 and 99.5 mb/d in 2011, as shown in the dashed line in Figure 2 ...
... have increased by (0.75)(17.5%) = 13.1%. Such calculations suggest that, if the price of oil had not increased since 2004, and if world GDP had grown by the amount observed since then, oil consumption could have reached 93.4 mb/d in 2008 and 99.5 mb/d in 2011, as shown in the dashed line in Figure 2 ...
To derive AS relation, we need
... 2. Wage setters will set their wage higher due to the modified expectations [W=f(Pe)], therefore under the wage setters pressure the price setters will increase the price level [P=f(W)]. 3. The higher price level leads to a lower real money stock. 4. A lower real money stock leads to a higher intere ...
... 2. Wage setters will set their wage higher due to the modified expectations [W=f(Pe)], therefore under the wage setters pressure the price setters will increase the price level [P=f(W)]. 3. The higher price level leads to a lower real money stock. 4. A lower real money stock leads to a higher intere ...
Third Oil Shock - Peterson Institute for International Economics
... stocks to the market . . . can make the third oil shock a non-event. The price increase marked the beginning of the second crisis. The principal cause of the predicament, though, was the fall of the Shah of Iran and the subsequent outbreak of war between Iraq and Iran. After the coup, Iran’s product ...
... stocks to the market . . . can make the third oil shock a non-event. The price increase marked the beginning of the second crisis. The principal cause of the predicament, though, was the fall of the Shah of Iran and the subsequent outbreak of war between Iraq and Iran. After the coup, Iran’s product ...
AGEC 105 - Department of Agricultural Economics
... (a) In 2011, U.S. net farm income will likely increase by almost 20% relative to 2010. (b) One out of every ten jobs in the U.S. economy is tied to the food and fiber industry. (c) U.S. farms tend to be specialized rather than diversified in that about half of the U.S. farms produce just one commodi ...
... (a) In 2011, U.S. net farm income will likely increase by almost 20% relative to 2010. (b) One out of every ten jobs in the U.S. economy is tied to the food and fiber industry. (c) U.S. farms tend to be specialized rather than diversified in that about half of the U.S. farms produce just one commodi ...
Nonlinearities and the Macroeconomic Effects of Oil Prices*
... will have some unemployed resources. Moreover, these effects are clearly nonlinear. For example when energy prices fell in 1985, some workers in the oil-producing sector were forced to find other jobs. As a result, it is possible in principle for aggregate output to fall temporarily in response to an ...
... will have some unemployed resources. Moreover, these effects are clearly nonlinear. For example when energy prices fell in 1985, some workers in the oil-producing sector were forced to find other jobs. As a result, it is possible in principle for aggregate output to fall temporarily in response to an ...
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... The previous discussion implies that consumer surplus is considered as a unique measure of utility change when the marginal utility of income is constant. That is, constancy of marginal utility of income guarantees path independency of the line integral, whereas path independency of the line integra ...
... The previous discussion implies that consumer surplus is considered as a unique measure of utility change when the marginal utility of income is constant. That is, constancy of marginal utility of income guarantees path independency of the line integral, whereas path independency of the line integra ...
Additional Help Practice Questions for Chapter 9 Michael G. Lanyi 1
... becomes more equitable. In the long run, which of the following is most likely to be ...
... becomes more equitable. In the long run, which of the following is most likely to be ...
This PDF is a selection from a published volume from... of Economic Research Volume Title: NBER Macroeconomics Annual 2012, Volume 27
... with the degree to which changes in broad price indices reflect variation in the size of the changes in individual prices that would in any event be reconsidered (the “intensive margin” of price adjustment), or variation in the number of prices that are reconsidered over a given period of time (the ...
... with the degree to which changes in broad price indices reflect variation in the size of the changes in individual prices that would in any event be reconsidered (the “intensive margin” of price adjustment), or variation in the number of prices that are reconsidered over a given period of time (the ...
Chapter 23 - Inflation
... The CPI does also does not take full account of – consumer differences, since it is based on the consumption patterns of an average household – changes in spending patterns since it uses base-year quantities – improvements in product quality ...
... The CPI does also does not take full account of – consumer differences, since it is based on the consumption patterns of an average household – changes in spending patterns since it uses base-year quantities – improvements in product quality ...
Answers. - Econedlink
... If the cause of inflation were, decreases in supply output would be falling. Over short periods of time, inflation can be caused by increases in costs or increases in spending. Inflation resulting from an increase in aggregate demand or total spending is called demand-pull inflation. Increases in de ...
... If the cause of inflation were, decreases in supply output would be falling. Over short periods of time, inflation can be caused by increases in costs or increases in spending. Inflation resulting from an increase in aggregate demand or total spending is called demand-pull inflation. Increases in de ...
National Income Concepts - JAJUPRAMODKUMAR'S WORLD
... domestic producers for their output. It is one of several price indices. Its importance is being undermined by the steady decline in manufactured goods as a share of spending. The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic ...
... domestic producers for their output. It is one of several price indices. Its importance is being undermined by the steady decline in manufactured goods as a share of spending. The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic ...
This PDF is a selection from a published volume from... Research Volume Title: Asset Prices and Monetary Policy
... John Y. Campbell is Harvard College Professor and Morton L. and Carole S. Olshan Professor of Economics at Harvard University, and a research associate of the National Bureau of Economic Research. 1. “Nice” stands for noninflationary consistently expansionary, an acronym due to Governor Mervyn King ...
... John Y. Campbell is Harvard College Professor and Morton L. and Carole S. Olshan Professor of Economics at Harvard University, and a research associate of the National Bureau of Economic Research. 1. “Nice” stands for noninflationary consistently expansionary, an acronym due to Governor Mervyn King ...
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.""