Business Cycle Theories
... following a change in aggregate demand, if nominal wages change in proportion, then the aggregate supply curve shifts vertically by the same amount as the demand shift, with no change in real variables. Self-correcting forces: the role of flexible prices in stabilising real GDP under some conditions ...
... following a change in aggregate demand, if nominal wages change in proportion, then the aggregate supply curve shifts vertically by the same amount as the demand shift, with no change in real variables. Self-correcting forces: the role of flexible prices in stabilising real GDP under some conditions ...
Example: Calculate the GDP of an economy with three firms a steel
... • Investors wanted to sell their stocks which in turn resulted in more decline of the stock prices and no one wanted to buy stock and panic spread all over the world. ...
... • Investors wanted to sell their stocks which in turn resulted in more decline of the stock prices and no one wanted to buy stock and panic spread all over the world. ...
Spring 2009
... (d) if expected inflation fell by more than the rise in the real interest rate. 6. A developing country does not have enough taxes to cover its expenditures and is unable to borrow. This government would be most likely to cover its deficit by: (a) purchasing government bonds from the public. (b) sel ...
... (d) if expected inflation fell by more than the rise in the real interest rate. 6. A developing country does not have enough taxes to cover its expenditures and is unable to borrow. This government would be most likely to cover its deficit by: (a) purchasing government bonds from the public. (b) sel ...
PRESIDENT'S REPORT TO THE BOARD OF DIRECTORS,
... record and existing home sales remained high. In the manufacturing sector, the ISM index eased in August and growth in industrial production slowed in July. Durable goods orders also slowed in July, as did orders for nondefense capital goods, excluding aircraft. Revisions to second quarter real GDP ...
... record and existing home sales remained high. In the manufacturing sector, the ISM index eased in August and growth in industrial production slowed in July. Durable goods orders also slowed in July, as did orders for nondefense capital goods, excluding aircraft. Revisions to second quarter real GDP ...
Slide 1
... last year. So your standard of living is no higher than last year. Your paycheck may be for a larger amount of money, but the prices you pay for the things you buy on average have increased by the same amount. Certainly the COLA clause gives you some protection against inflation in that at least you ...
... last year. So your standard of living is no higher than last year. Your paycheck may be for a larger amount of money, but the prices you pay for the things you buy on average have increased by the same amount. Certainly the COLA clause gives you some protection against inflation in that at least you ...
The Dust Bowl: action and reaction between
... Depression, crops were bountiful and farmers enjoyed several seasons of high yields, the profits of which were often consigned to financial investments and bank deposits that disappeared over night. The combination of both phenomena resulted in a mass exodus from the central states. More than three ...
... Depression, crops were bountiful and farmers enjoyed several seasons of high yields, the profits of which were often consigned to financial investments and bank deposits that disappeared over night. The combination of both phenomena resulted in a mass exodus from the central states. More than three ...
Chapter 01 Lecture Notes Page
... GDP is gross domestic product, and it measures the total value of all goods and services produced in a year by a nation’s economy through domestic factors of production. Real GDP is GDP adjusted for inflation. Both measure annual performance of a given economy. 4. Why is inflation both good and bad? ...
... GDP is gross domestic product, and it measures the total value of all goods and services produced in a year by a nation’s economy through domestic factors of production. Real GDP is GDP adjusted for inflation. Both measure annual performance of a given economy. 4. Why is inflation both good and bad? ...
University of the Faroe Islands Introductory Course in Economics
... Why long-term economic growth is measured as an increase in real GDP per capita, how real GDP per capita has changed over time, and how much real GDP per capita differs between countries Why productivity is the key to long-term economic growth and how physical capital, human capital and technologica ...
... Why long-term economic growth is measured as an increase in real GDP per capita, how real GDP per capita has changed over time, and how much real GDP per capita differs between countries Why productivity is the key to long-term economic growth and how physical capital, human capital and technologica ...
PowerPoint File
... • THEN can tie changes in money supply to changes in “P” – that is, inflation • But in fact – V is noisy and shifts with institutional change – PY is not easy to decompose ...
... • THEN can tie changes in money supply to changes in “P” – that is, inflation • But in fact – V is noisy and shifts with institutional change – PY is not easy to decompose ...
A rise in the price of oil imports has resulted in a decrease of short
... 1. Use an aggregate demand and aggregate supply diagram to show what will happen to output, prices, unemployment and wages in the U.S. economy if there is a large increase in the price of oil. On your diagram, mark the starting output as QN, the output at the end of the short run as Q2, and the outp ...
... 1. Use an aggregate demand and aggregate supply diagram to show what will happen to output, prices, unemployment and wages in the U.S. economy if there is a large increase in the price of oil. On your diagram, mark the starting output as QN, the output at the end of the short run as Q2, and the outp ...
State-Wrecked: The Corruption of Capitalism in America - 04-1-2013
... going dark and the money market industry was not imploding. Instead, the White House, Congress and the Fed, under Mr. Bush and then President Obama, made a series of desperate, reckless maneuvers that were not only unnecessary but ruinous. The auto bailouts, for example, simply shifted jobs around — ...
... going dark and the money market industry was not imploding. Instead, the White House, Congress and the Fed, under Mr. Bush and then President Obama, made a series of desperate, reckless maneuvers that were not only unnecessary but ruinous. The auto bailouts, for example, simply shifted jobs around — ...
Euro-zone Economic Outlook April 2008: Slogging through a weakening world economy (PDF, 104 KB)
... driven by the recovery in order books, while in France it was supported by the enhancement in entrepreneurs’ assessment of production outlook. The development of industrial activity is again diverging in Italy, eroding the gains observed during 2007. After a recovery at the beginning of 2008, indust ...
... driven by the recovery in order books, while in France it was supported by the enhancement in entrepreneurs’ assessment of production outlook. The development of industrial activity is again diverging in Italy, eroding the gains observed during 2007. After a recovery at the beginning of 2008, indust ...
mod 3 top 4: economic growth 1. Other things equal, which of the
... A. the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. B. public investments in highways, schools, utilities, and such. C. the fact that large producers may be able to use more efficient technologies than smaller producers. D. the reallocation of labor ...
... A. the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. B. public investments in highways, schools, utilities, and such. C. the fact that large producers may be able to use more efficient technologies than smaller producers. D. the reallocation of labor ...
President’s Report Board Directors
... Data released since your last Directors' meeting show the economy shrank in the third quarter at a higher rate than first estimated. Recent data also suggest the now-official recession could stretch well into next year. Rising unemployment, worried consumers, and manufacturing cutbacks are all likel ...
... Data released since your last Directors' meeting show the economy shrank in the third quarter at a higher rate than first estimated. Recent data also suggest the now-official recession could stretch well into next year. Rising unemployment, worried consumers, and manufacturing cutbacks are all likel ...
... GDP expanded by 1.9% in 2014, owing to growth in all sectors apart from manufacturing, which contracted slightly. Business and personal services accounted for the largest share of growth (0.4 percentage points), driven by public and private health services and legal and accounting activities. Mining ...
The Stockholm School
... rate of interest is to remain unaltered. If prices rise, the rate of interest is to be raised; and if prices fall, the rate of interest is to be lowered; and the rate interest is henceforth to be maintained at its new level until a further movement of prices calls for a further change in one directi ...
... rate of interest is to remain unaltered. If prices rise, the rate of interest is to be raised; and if prices fall, the rate of interest is to be lowered; and the rate interest is henceforth to be maintained at its new level until a further movement of prices calls for a further change in one directi ...
HOW TO STOP THE DEPRESSION
... no lower than that of its gold content as determined in the open market. In other words, the monetary value of the standard gold coin must be adjusted upwards every time the gold price makes a new high. As an aside I note that at present the Federal Reserve still tariffs gold at $42.22, while in the ...
... no lower than that of its gold content as determined in the open market. In other words, the monetary value of the standard gold coin must be adjusted upwards every time the gold price makes a new high. As an aside I note that at present the Federal Reserve still tariffs gold at $42.22, while in the ...
Timescale interactions in economy: Application to climate change
... Investing less is not equivalent to having some productive capital destroyed by a disaster We introduce: K0 = potential capital (no disaster) K = portion of destroyed capital Effective capital : ...
... Investing less is not equivalent to having some productive capital destroyed by a disaster We introduce: K0 = potential capital (no disaster) K = portion of destroyed capital Effective capital : ...
but weaker in advanced economies.
... • Turkey can probably not sustain the rapid economic growth and very high trade deficits of recent years. • Vulnerable to world oil price. ...
... • Turkey can probably not sustain the rapid economic growth and very high trade deficits of recent years. • Vulnerable to world oil price. ...
SOLUTION EXAM 06/07/04
... Y = quantity of output (real GDP) This equation states that the quantity of money (M) time the velocity of money (V) equals the price of output (P) times the amount of output. It relates the quantity of money (M) to the nominal value of output (P x Y). According to this theory inflation is exclusive ...
... Y = quantity of output (real GDP) This equation states that the quantity of money (M) time the velocity of money (V) equals the price of output (P) times the amount of output. It relates the quantity of money (M) to the nominal value of output (P x Y). According to this theory inflation is exclusive ...
exercises for q2
... d) none of the above. 2. Cyclical unemployment is frequently caused by: a) shifts in the economy that make certain job skills obsolete; b) temporary layoffs in industries such as agriculture; c) the impact of recession on employment; d) none of the above. 3. The natural rate of unemployment tends to ...
... d) none of the above. 2. Cyclical unemployment is frequently caused by: a) shifts in the economy that make certain job skills obsolete; b) temporary layoffs in industries such as agriculture; c) the impact of recession on employment; d) none of the above. 3. The natural rate of unemployment tends to ...
Panel Discussion James Tobin*
... impact. Its influence is indirect, via interest rates on assets of longer duration and maturity, bank loan rates and lending policies, and equity values. The funds rate seems to be a tiny tail wagging a huge dog. It often works, but how? and how reliably? The term structure is a weak and erratic lin ...
... impact. Its influence is indirect, via interest rates on assets of longer duration and maturity, bank loan rates and lending policies, and equity values. The funds rate seems to be a tiny tail wagging a huge dog. It often works, but how? and how reliably? The term structure is a weak and erratic lin ...
Keynesian vs New Classical
... the price level and output (real GDP) produced by firms when the prices of all resources, especially price of labor (wages), are flexible and change along with changes in the price level. It assumes the economy has reached its potential – The Keynesian AS curve is for both LR and SR. It assumes spar ...
... the price level and output (real GDP) produced by firms when the prices of all resources, especially price of labor (wages), are flexible and change along with changes in the price level. It assumes the economy has reached its potential – The Keynesian AS curve is for both LR and SR. It assumes spar ...
Government's role in investments in power plants in Iceland
... • You don’t have to calculate for full wage costs in public investments during economic recessions. • The discount rate used in the evaluation of those investments is lower than the one private companies use. ...
... • You don’t have to calculate for full wage costs in public investments during economic recessions. • The discount rate used in the evaluation of those investments is lower than the one private companies use. ...
Long Depression
The Long Depression was a worldwide price recession, beginning in 1873 and running through the spring of 1879. It was the most severe in Europe and the United States, which had been experiencing strong economic growth fueled by the Second Industrial Revolution in the decade following the American Civil War. The episode was labeled the ""Great Depression"" at the time, and it held that designation until the Great Depression of the 1930s. Though a period of general deflation and a general contraction, it did not have the severe economic retrogression of the Great Depression.It was most notable in Western Europe and North America, at least in part because reliable data from the period are most readily available in those parts of the world. The United Kingdom is often considered to have been the hardest hit; during this period it lost some of its large industrial lead over the economies of Continental Europe. While it was occurring, the view was prominent that the economy of the United Kingdom had been in continuous depression from 1873 to as late as 1896 and some texts refer to the period as the Great Depression of 1873–96.In the United States, economists typically refer to the Long Depression as the Depression of 1873–79, kicked off by the Panic of 1873, and followed by the Panic of 1893, book-ending the entire period of the wider Long Depression. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction.In the US, from 1873–1879, 18,000 businesses went bankrupt, including 89 railroads. Ten states and hundreds of banks went bankrupt. Unemployment peaked in 1878, long after the panic ended. Different sources peg the peak unemployment rate anywhere from 8.25% to 14%.