Solutions to PSET 4 1. Why does the AS curve slope up, at least in
... total quantity of output produced by firms. Because firms have market power (as in monopolistic competition) they may raise output and prices in response to an increase in demand for their products. When aggregate demand rises, price level rises but wages tend be sticky, moving only gradually in res ...
... total quantity of output produced by firms. Because firms have market power (as in monopolistic competition) they may raise output and prices in response to an increase in demand for their products. When aggregate demand rises, price level rises but wages tend be sticky, moving only gradually in res ...
... strong print in the last quarter of 2010. Indeed, industrial production, capacity utilization and other leading data indicate a slowdown on a quarterly basis. In addition, expectations for the 3-month ahead orders signal that economic activity would continue to grow moderately in the second quarter. ...
IMF background note G-8 Energy Ministers Meeting
... demand prospects in global commodity markets were seriously damaged. In addition, while advanced economies only accounted for a small share of the demand increases during the boom, they have accounted for most of the fall in the levels of global commodity consumption in recent months. Following past ...
... demand prospects in global commodity markets were seriously damaged. In addition, while advanced economies only accounted for a small share of the demand increases during the boom, they have accounted for most of the fall in the levels of global commodity consumption in recent months. Following past ...
Market Cap
... Steady increase in profitability ratios despite declining asset turnover led to improved returns ...
... Steady increase in profitability ratios despite declining asset turnover led to improved returns ...
Unit 3: Markets, not just for fleas and stocks!
... That explains the left side of the diagram, showing how the family demanded popcorn and then acquired it. The right side of the diagram shows how the popcorn was supplied. To be a successful popcorn “Business,” a company must secure kernels of corn; these are the primary “Resource” needed to produce ...
... That explains the left side of the diagram, showing how the family demanded popcorn and then acquired it. The right side of the diagram shows how the popcorn was supplied. To be a successful popcorn “Business,” a company must secure kernels of corn; these are the primary “Resource” needed to produce ...
Economics 100 Old Final Examination
... hours working at $10 per hour, attending a baseball game for $15, or renting a movie for $4. Your opportunity cost of attending the play is: A. $10, because this is the price of the ticket B. $20, because this is the value of the time sacrificed C. $30, because this is the value of everything that w ...
... hours working at $10 per hour, attending a baseball game for $15, or renting a movie for $4. Your opportunity cost of attending the play is: A. $10, because this is the price of the ticket B. $20, because this is the value of the time sacrificed C. $30, because this is the value of everything that w ...
note C
... nominal rigidities are of importance for short run mechanisms, although in their view the “short run” was shorter than believed by Keynesians. Of lasting influence was Friedman’s emphatic claim that while there is usually a short-run trade-off between inflation and unemployment, there is no long-run ...
... nominal rigidities are of importance for short run mechanisms, although in their view the “short run” was shorter than believed by Keynesians. Of lasting influence was Friedman’s emphatic claim that while there is usually a short-run trade-off between inflation and unemployment, there is no long-run ...
Mankiw 6e PowerPoints
... What is the government budget deficit? How does it affect workers, consumers, businesses, and taxpayers? CHAPTER 1 ...
... What is the government budget deficit? How does it affect workers, consumers, businesses, and taxpayers? CHAPTER 1 ...
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS Subject CT7 - Economics
... A. quantity exchanged would decrease and price would be indeterminate. B. price and quantity exchanged would both decrease. C. price would decrease and quantity exchanged would be indeterminate. D. there is not enough information to determine either price or quantity. ...
... A. quantity exchanged would decrease and price would be indeterminate. B. price and quantity exchanged would both decrease. C. price would decrease and quantity exchanged would be indeterminate. D. there is not enough information to determine either price or quantity. ...
Lahore School of Economics
... A. more than one Euro, and European imports will be relatively cheaper in the United States B. less than one Euro, and European imports will be relatively more expensive in the United States C. more than one Euro, and European imports will be relatively more expensive in the United States D. less th ...
... A. more than one Euro, and European imports will be relatively cheaper in the United States B. less than one Euro, and European imports will be relatively more expensive in the United States C. more than one Euro, and European imports will be relatively more expensive in the United States D. less th ...
Aggregate Supply in the Short and Long Run
... • There are three reasons why the Short run Aggregate Supply curve is upward sloping. • Sticky wages - as prices rise wages may be slow to follow, allowing business owners to profit from higher prices. • Sticky prices- all prices do not rise simultaneously. A business that is slow to raise their pri ...
... • There are three reasons why the Short run Aggregate Supply curve is upward sloping. • Sticky wages - as prices rise wages may be slow to follow, allowing business owners to profit from higher prices. • Sticky prices- all prices do not rise simultaneously. A business that is slow to raise their pri ...
Intermediate Macroeconomics - College of Business and Economics
... Ignores costs of output adjustment; Fails to explain why some prices are more flexible;To get large aggregate effects requires implausible values for demand elasticity and marginal cost elasticity ...
... Ignores costs of output adjustment; Fails to explain why some prices are more flexible;To get large aggregate effects requires implausible values for demand elasticity and marginal cost elasticity ...
The Classical Model and Macroeconomic Policy
... would eliminate the surplus by driving down wages. In the face of unemployment, workers would bid down wages until equilibrium was established. In this simple world, there is no long-term unemployment. Returning to the initial question of how the increase in money would be allocated between higher p ...
... would eliminate the surplus by driving down wages. In the face of unemployment, workers would bid down wages until equilibrium was established. In this simple world, there is no long-term unemployment. Returning to the initial question of how the increase in money would be allocated between higher p ...
Department of Economics Economics 1123 Harvard University Fall
... determine whether shifts in prices and quantities indicate that a company or group of companies has market power (that is, that it is a price-setter rather than a price-taker). In this problem set, you will use market data to attempt to decide whether a cartel was at work in a nineteenth century mar ...
... determine whether shifts in prices and quantities indicate that a company or group of companies has market power (that is, that it is a price-setter rather than a price-taker). In this problem set, you will use market data to attempt to decide whether a cartel was at work in a nineteenth century mar ...
Working With Our Basic Aggregate Demand / Supply Model
... Such factors as an improvement in technology will expand the economy’s potential output and shift the LRAS to the right (note that SRAS will also shift to the right). Such factors as a reduction in resource prices, favorable weather, or a temporary decrease in the world price of an important importe ...
... Such factors as an improvement in technology will expand the economy’s potential output and shift the LRAS to the right (note that SRAS will also shift to the right). Such factors as a reduction in resource prices, favorable weather, or a temporary decrease in the world price of an important importe ...
Inflation - Cloudfront.net
... Money supply exceeds the dollar value of all goods and services within the economy (real GDP). Excess money in the economy creates a demand-pull effect ...
... Money supply exceeds the dollar value of all goods and services within the economy (real GDP). Excess money in the economy creates a demand-pull effect ...
Shifting LRAS - The Good, the Bad and the Economist
... affecting SRAS were identified; price of labour, price of other factor inputs such as raw materials, and taxation/legislation. While all of these indeed affect the long run, there are several rather specific long run influences for LRAS: New oil/mineral finds, improved pesticides, better land use, ...
... affecting SRAS were identified; price of labour, price of other factor inputs such as raw materials, and taxation/legislation. While all of these indeed affect the long run, there are several rather specific long run influences for LRAS: New oil/mineral finds, improved pesticides, better land use, ...
OPEC - Marriott School
... Yom Kippur War, that they would no longer ship petroleum to nations that had supported Israel in its conflict with Syria and Egypt •About the same time, ...
... Yom Kippur War, that they would no longer ship petroleum to nations that had supported Israel in its conflict with Syria and Egypt •About the same time, ...
ECON 509 Homework over Chapter 5
... 1. The Keynesian AS-curve differs from the classical AS-curve, since Keynes A) thought that labor markets worked smoothly to always establish full employment B) thought that nominal wages were flexible even when there was unemployment C) thought that nominal wages were rigid even when there was unem ...
... 1. The Keynesian AS-curve differs from the classical AS-curve, since Keynes A) thought that labor markets worked smoothly to always establish full employment B) thought that nominal wages were flexible even when there was unemployment C) thought that nominal wages were rigid even when there was unem ...
macroeconomic principles (econ
... fluctuations and adjustment. The economy is self-adjusting to full employment. There is debate about how fast the economy adjusts and whether the government can speed up the process. We will always start in long-run equilibrium and shock the economy. We will adjust back to full employment. 1. Expans ...
... fluctuations and adjustment. The economy is self-adjusting to full employment. There is debate about how fast the economy adjusts and whether the government can speed up the process. We will always start in long-run equilibrium and shock the economy. We will adjust back to full employment. 1. Expans ...
President’s Report Board Directors
... stronger than originally thought, the economy is still restrained. Escalating oil prices and weaker employment conditions are wearing on consumers, and investment data has been mixed. Combined with the prolonged housing slump, these factors are likely to continue to restrict growth through the secon ...
... stronger than originally thought, the economy is still restrained. Escalating oil prices and weaker employment conditions are wearing on consumers, and investment data has been mixed. Combined with the prolonged housing slump, these factors are likely to continue to restrict growth through the secon ...
Aggregate Supply, Demand, and Equilibrium
... need to charge higher interest rates to get a REAL return on their loans. • Higher interest rates discourage consumer spending and business investment. WHY? • Example: An increase in prices leads to an increase in the interest rate from 5% to 25%. You are less likely to take out loans to improve you ...
... need to charge higher interest rates to get a REAL return on their loans. • Higher interest rates discourage consumer spending and business investment. WHY? • Example: An increase in prices leads to an increase in the interest rate from 5% to 25%. You are less likely to take out loans to improve you ...
Inflation ch 13.2
... push inflation can cause a wage price spiral, which is when wages go up causing prices to go up, which causes workers to ask for higher wages. Also, when unemployment falls to very low levels, we get an increase in prices. ...
... push inflation can cause a wage price spiral, which is when wages go up causing prices to go up, which causes workers to ask for higher wages. Also, when unemployment falls to very low levels, we get an increase in prices. ...
Keynote Address - Harvard University
... – link the terms of the loan, not to $, nor to the local currency, but to the price of the export commodity. – Then debt service obligations match revenues. – Debt crises in Indonesia, Russia & Ecuador in 1998: • <= the $ prices of their oil exports had fallen, – and so their debt service ratios wor ...
... – link the terms of the loan, not to $, nor to the local currency, but to the price of the export commodity. – Then debt service obligations match revenues. – Debt crises in Indonesia, Russia & Ecuador in 1998: • <= the $ prices of their oil exports had fallen, – and so their debt service ratios wor ...
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.""