Macroeconomic Views
... also known as the GDP deflator Real Output (Q) = real output, the quantity of goods and services in GDP. ...
... also known as the GDP deflator Real Output (Q) = real output, the quantity of goods and services in GDP. ...
Fisher Explained
... In the money market, interest rates are measured on the y-axis and the quantity of money is measured on the x-axis. In our example, we will assume that the economy is at point A. At point A, GDP is at the full employment level. Prices are at P* and unemployment is at 5.5 percent (the natural rate). ...
... In the money market, interest rates are measured on the y-axis and the quantity of money is measured on the x-axis. In our example, we will assume that the economy is at point A. At point A, GDP is at the full employment level. Prices are at P* and unemployment is at 5.5 percent (the natural rate). ...
Global economy: Bumpy recovery and volatile financial
... of 0.4% in the first quarter, the economy recorded the strongest increase for almost two years. The acceleration is being buoyed primarily by external factors: the ongoing weakness of the euro, the still low oil price and the ECB’s ultra-loose monetary policy. We expect positive thrusts above all on ...
... of 0.4% in the first quarter, the economy recorded the strongest increase for almost two years. The acceleration is being buoyed primarily by external factors: the ongoing weakness of the euro, the still low oil price and the ECB’s ultra-loose monetary policy. We expect positive thrusts above all on ...
ch 9 sp 2017
... 7. (p. 188) Suppose the quantities of labor, land, and capital each increase by 12 percent while output increases by 9 percent. In that case, returns to scale are: A. decreasing. If output rises by less than the proportion of all inputs, then decreasing returns to scale exist. 8. (p. 188) According ...
... 7. (p. 188) Suppose the quantities of labor, land, and capital each increase by 12 percent while output increases by 9 percent. In that case, returns to scale are: A. decreasing. If output rises by less than the proportion of all inputs, then decreasing returns to scale exist. 8. (p. 188) According ...
MONETARY POLICY BUSINESS CYCLE Beryl W. Sprinkel
... change and the business cycle. Although this relationship is debatable, the evidence of the direction of change between money growth and nominal economic activity appears overwhelming. One does not have to argue that money is the only causal factor in business cycles, and I would not, but the eviden ...
... change and the business cycle. Although this relationship is debatable, the evidence of the direction of change between money growth and nominal economic activity appears overwhelming. One does not have to argue that money is the only causal factor in business cycles, and I would not, but the eviden ...
The Broken Window Fallacy (with answer key)
... terrorist attacks on the World trade Center and the Pentagon. Based on your knowledge of the Broken Window Fallacy, do you think Dr. Krugman is right? Are acts of war and terrorism potentially good for the economy? Why or why not? “Ghastly as it may seem to say this, the terror attack -- like the or ...
... terrorist attacks on the World trade Center and the Pentagon. Based on your knowledge of the Broken Window Fallacy, do you think Dr. Krugman is right? Are acts of war and terrorism potentially good for the economy? Why or why not? “Ghastly as it may seem to say this, the terror attack -- like the or ...
here
... If the recession is particularly severe, it becomes a depression. During a recession, many sectors of the economy experience declining sales and production, and workers are laid off or forced to work only part-time. ...
... If the recession is particularly severe, it becomes a depression. During a recession, many sectors of the economy experience declining sales and production, and workers are laid off or forced to work only part-time. ...
'The State of the World Economy' (pdf).
... Source: IMF staff estimates based on 2010 October WEO. 1/ In percent of GDP; distance from yellow bar reflects required additional fiscal adjustment relative to 2010-13; adjustment to be sustained between 2020-30 to reduce public debt to prudent levels. 2/ Structural primary balance. 3/ Excluding fi ...
... Source: IMF staff estimates based on 2010 October WEO. 1/ In percent of GDP; distance from yellow bar reflects required additional fiscal adjustment relative to 2010-13; adjustment to be sustained between 2020-30 to reduce public debt to prudent levels. 2/ Structural primary balance. 3/ Excluding fi ...
Social Studies 30 - Sundre High School
... The Great Depression began in 1929 and was largely the result of 2 phenomenon; a largely unregulated banking and investment system in the United States (and other capitalist democracies) and lack of consumer confidence in the economy once the stock market crash began in 1929. The period after World ...
... The Great Depression began in 1929 and was largely the result of 2 phenomenon; a largely unregulated banking and investment system in the United States (and other capitalist democracies) and lack of consumer confidence in the economy once the stock market crash began in 1929. The period after World ...
Community Leaders Breakfast Hotel De Anza, San Jose, CA
... First, the prices of imported goods were kept down by a strong dollar and weakness in some of our trading partners abroad. ...
... First, the prices of imported goods were kept down by a strong dollar and weakness in some of our trading partners abroad. ...
Economic Activites
... 130 million worker in the U.S. Labor force consists of all people above the age of 16 who are actively working or seeking work Unemployment rate another economic statistic of concern Unemployment rate – the portion of people in the labor force who are NOT working Considered unemployed when ...
... 130 million worker in the U.S. Labor force consists of all people above the age of 16 who are actively working or seeking work Unemployment rate another economic statistic of concern Unemployment rate – the portion of people in the labor force who are NOT working Considered unemployed when ...
The Great Divergence in World Incomes
... unrealiable. • Instead I rely on real wages. They measure the incomes of workers and perhaps other people as well. ...
... unrealiable. • Instead I rely on real wages. They measure the incomes of workers and perhaps other people as well. ...
The current economic situation in Germany
... Economic activity in the second quarter was given a sharp boost by exports, which benefited from the slight firming of global economic dynamics following the sluggish start to the year and probably also from the euro’s earlier depreciation and returned to the faster-paced development seen in the se ...
... Economic activity in the second quarter was given a sharp boost by exports, which benefited from the slight firming of global economic dynamics following the sluggish start to the year and probably also from the euro’s earlier depreciation and returned to the faster-paced development seen in the se ...
short-run economic fluctuations
... • What, if anything, can the government do to stop GDP from falling and unemployment from rising? • And if the government can’t stop the occurrence of bad times, can it at least make them less damaging in terms of duration and severity? ...
... • What, if anything, can the government do to stop GDP from falling and unemployment from rising? • And if the government can’t stop the occurrence of bad times, can it at least make them less damaging in terms of duration and severity? ...
The Bursting of the Asian Housing Bubble*
... bubbles in many Asian countries, the bursting of the bubble need not be good news, and can have painful conseqences. As in the US housing market before 2007, most of the increase in real estate prices in these Asian economies was debt-driven, resulting from the rapid expansion of retail credit to ho ...
... bubbles in many Asian countries, the bursting of the bubble need not be good news, and can have painful conseqences. As in the US housing market before 2007, most of the increase in real estate prices in these Asian economies was debt-driven, resulting from the rapid expansion of retail credit to ho ...
Inflation and Deflation: Meaning, Measures and Impact
... Causes fiscal drag and bracket creep: salary increases move people into higher tax brackets and they could be effectively worse off. Inflation has an adverse effect on a country’s balance of payments. If India’s rate of inflation is higher than that of our trading partners the result is a loss of in ...
... Causes fiscal drag and bracket creep: salary increases move people into higher tax brackets and they could be effectively worse off. Inflation has an adverse effect on a country’s balance of payments. If India’s rate of inflation is higher than that of our trading partners the result is a loss of in ...
Problem 1. Assume that the price level is set as a weighted average
... normalize the foreign prices to 1 P* = 1. Assuming ceteris paribus, what is the impact on the nominal and real exchange rate of the following events: − total expenditures are constant & the overall price level P is constant, but domestic residents decide to spend more of their income on non-tradable ...
... normalize the foreign prices to 1 P* = 1. Assuming ceteris paribus, what is the impact on the nominal and real exchange rate of the following events: − total expenditures are constant & the overall price level P is constant, but domestic residents decide to spend more of their income on non-tradable ...
What phase of the business cycle
... Low interest rates makes it easier for people and businesses to borrow money companies make new investments, adding jobs. High interest rates does the opposite. ...
... Low interest rates makes it easier for people and businesses to borrow money companies make new investments, adding jobs. High interest rates does the opposite. ...
Paul Krugman wrote The Return of Depression Economics (1999
... (1991-2003) was an internal one. Like the Great Depression, and like our current financial crisis, it began with low interest rates/ cheap loans and massive private spending which drove up real estate and stock market prices. When people were forced to confront the fact that assets were over-valued, ...
... (1991-2003) was an internal one. Like the Great Depression, and like our current financial crisis, it began with low interest rates/ cheap loans and massive private spending which drove up real estate and stock market prices. When people were forced to confront the fact that assets were over-valued, ...
Macroeconomics Notes - North Allegheny School District
... as more and more companies want to I and fewer and fewer people save as P ↑ => Inflation and an “overheated economy” ...
... as more and more companies want to I and fewer and fewer people save as P ↑ => Inflation and an “overheated economy” ...
No: 2009-12 31 March 2009 SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING
... some downward pressure on the prices of durable goods in March and April, but is expected to be offset by price increases as the tax cut expires in the middle of June. Therefore, the SCT tax cut is expected to have only a temporary direct impact on inflation. Similarly, the SCT tax cut may cause a t ...
... some downward pressure on the prices of durable goods in March and April, but is expected to be offset by price increases as the tax cut expires in the middle of June. Therefore, the SCT tax cut is expected to have only a temporary direct impact on inflation. Similarly, the SCT tax cut may cause a t ...
Econ 375 Sample Exam 3 Questions 1. Some firms do not instantly
... 16. Which of the following is an example of a fiscal policy that has no inside lag? A) a decrease in income tax rates B) an ongoing unemployment insurance program C) an increase in government spending for job training D) a reduction in the age at which people become eligible for retirement benefits ...
... 16. Which of the following is an example of a fiscal policy that has no inside lag? A) a decrease in income tax rates B) an ongoing unemployment insurance program C) an increase in government spending for job training D) a reduction in the age at which people become eligible for retirement benefits ...
PDF
... ranging from -0.9 percent in 1982 to +2.9 percent in 1983. Average hourly earnings of all nonfarm workers , adjusted for inflation, declined slowly but steadily through the 1980s. As Kevin Phillips points out, real family incomes in all but the top 20 percent declined between 1977 and 1988; stated d ...
... ranging from -0.9 percent in 1982 to +2.9 percent in 1983. Average hourly earnings of all nonfarm workers , adjusted for inflation, declined slowly but steadily through the 1980s. As Kevin Phillips points out, real family incomes in all but the top 20 percent declined between 1977 and 1988; stated d ...
Chapter 9: Introduction to Economic Fluctuations (A short Run Model
... model, the fluctuations in output (business cycle) can only be caused by changes in inputs (capital and labor) or changes in production function (technology). In other words, only variation in real variables (supply shocks) can generate business cycle. The latest version of this kind of flexible-pri ...
... model, the fluctuations in output (business cycle) can only be caused by changes in inputs (capital and labor) or changes in production function (technology). In other words, only variation in real variables (supply shocks) can generate business cycle. The latest version of this kind of flexible-pri ...
Therefore, entrepreneurship is the best way to go in
... like bush fire is globalisation. The world has been reduced into a small global village and what affects one country may directly or indirectly affect the other; more so the economic depression under review. According to Mishkrin (2004, P. 656), “The major cause in the investment collapse of 1929-19 ...
... like bush fire is globalisation. The world has been reduced into a small global village and what affects one country may directly or indirectly affect the other; more so the economic depression under review. According to Mishkrin (2004, P. 656), “The major cause in the investment collapse of 1929-19 ...
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%.