AD and AS - uwcmaastricht-econ
... A number of factors other than the PL can cause shifts of the SRAS curve. A rightward shift of the SRAS curve means that for any particular price level, firms produce a larger quantity of real GDP. A leftward shift of the SRAS curve means that for any particular price level, firms produce a smaller ...
... A number of factors other than the PL can cause shifts of the SRAS curve. A rightward shift of the SRAS curve means that for any particular price level, firms produce a larger quantity of real GDP. A leftward shift of the SRAS curve means that for any particular price level, firms produce a smaller ...
US Economy in Recession: Similarities To and Differences From the
... [Excerpt] According to the National Bureau of Economic Research (NBER), the U.S. economy entered a recession in December 2007. It is now the longest recession of the post-World War II era. The recession can be separated into two distinct phases. During the first phase, which lasted for the first hal ...
... [Excerpt] According to the National Bureau of Economic Research (NBER), the U.S. economy entered a recession in December 2007. It is now the longest recession of the post-World War II era. The recession can be separated into two distinct phases. During the first phase, which lasted for the first hal ...
Chronic Deflation in Japan - Faculty of Business and Economics
... examining each of the explanatory variables—namely, inflation expectations, the output gap and other factors—in turn. In doing so, we not only describe developments in these variables, but also discuss what the driving forces underlying them are in order to discover the more fundamental reasons for ...
... examining each of the explanatory variables—namely, inflation expectations, the output gap and other factors—in turn. In doing so, we not only describe developments in these variables, but also discuss what the driving forces underlying them are in order to discover the more fundamental reasons for ...
Chapter 12: Aggregate Demand and Aggregate Supply model
... If households become more optimistic about their future incomes, they are likely to increase their current consumption. Changes in Foreign Variables If firms and households in other countries buy fewer U.S. goods or if firms and households in the United States buy more foreign goods, net exports wil ...
... If households become more optimistic about their future incomes, they are likely to increase their current consumption. Changes in Foreign Variables If firms and households in other countries buy fewer U.S. goods or if firms and households in the United States buy more foreign goods, net exports wil ...
Money and Inflation
... purchase of bonds from public In exchange for bonds, CB gives money to public and the money supply increases During the financial crisis,the Fed increased the ...
... purchase of bonds from public In exchange for bonds, CB gives money to public and the money supply increases During the financial crisis,the Fed increased the ...
Economic Growth
... handful of countries, mostly in Western Europe and North America, and largely represented by the list in Table 3.1, could manage the “takeo↵ into sustained growth,” to use a well-known term coined by the economic historian W. W. Rostow. Throughout most of what is commonly known as the Third World, t ...
... handful of countries, mostly in Western Europe and North America, and largely represented by the list in Table 3.1, could manage the “takeo↵ into sustained growth,” to use a well-known term coined by the economic historian W. W. Rostow. Throughout most of what is commonly known as the Third World, t ...
Global inflation: how big a threat?
... and emerging markets. Though the major developed economies are better placed to deal with the current round of price shocks than during the 1970s, emerging market and developing economies may be more vulnerable. But avoiding the mistakes of the 1970s, when high inflation became deeply ingrained and ...
... and emerging markets. Though the major developed economies are better placed to deal with the current round of price shocks than during the 1970s, emerging market and developing economies may be more vulnerable. But avoiding the mistakes of the 1970s, when high inflation became deeply ingrained and ...
A Two-Sector Model of Economic Growth
... reduction of Federal budget deficits. If this were the case, then we would expect to see the ratio of real investment to real consumption declining to its long-run average with the next recession. However, while the factors just cited have likely played some role in the remarkable strength in invest ...
... reduction of Federal budget deficits. If this were the case, then we would expect to see the ratio of real investment to real consumption declining to its long-run average with the next recession. However, while the factors just cited have likely played some role in the remarkable strength in invest ...
Consistently wrong: Neoclassical micro
... macroeconomic policy will be perceived as stimulating, pushing the economy to a higher potential, it will be perceived as a virtue rather than as a mistake. Thus, economic agents are assumed to have learned (or to know) the right model - which is supposed to be the new classical model - and they kno ...
... macroeconomic policy will be perceived as stimulating, pushing the economy to a higher potential, it will be perceived as a virtue rather than as a mistake. Thus, economic agents are assumed to have learned (or to know) the right model - which is supposed to be the new classical model - and they kno ...
The Exchange Economy, Money - Cowles Foundation
... The various proofs of the existence of a set of prices as a su¢ cient signal to coordinate all actors operating purely in the interest of self with no further considerations of other aspects of the society or polity were, and remain striking. For those who do not see the limitations implicit in the ...
... The various proofs of the existence of a set of prices as a su¢ cient signal to coordinate all actors operating purely in the interest of self with no further considerations of other aspects of the society or polity were, and remain striking. For those who do not see the limitations implicit in the ...
Mechanisms of Financial Crises in Growth and Collapse
... any government, it is still barely visible on the political agenda. Today’s economics – compared to in earlier times – has important blind spots as regards the role of the financial sector, and these blind spots also transfer to the perspective of politicians. Earlier terminologies, which understood ...
... any government, it is still barely visible on the political agenda. Today’s economics – compared to in earlier times – has important blind spots as regards the role of the financial sector, and these blind spots also transfer to the perspective of politicians. Earlier terminologies, which understood ...
Research Statement Jón Steinsson March 2012 My research
... terms for both the commitment case and the case of discretion. I show that the result attained in a purely forward-looking model that price-level targeting is optimal is fragile to the presence of ruleof-thumb consumers. In addition to the ongoing projects discussed above, Emi Nakamura and I have b ...
... terms for both the commitment case and the case of discretion. I show that the result attained in a purely forward-looking model that price-level targeting is optimal is fragile to the presence of ruleof-thumb consumers. In addition to the ongoing projects discussed above, Emi Nakamura and I have b ...
Keynes-Wicksell and Neoclassical Models of Money and
... The essential features of Keynes-Wicksell (henceforth KW) monetary growth models, distinguishing them from neoclassical models, are the specification of an independent investment function and the assumption that prices change only in response to excess demand in the goods market.! In neoclassical mo ...
... The essential features of Keynes-Wicksell (henceforth KW) monetary growth models, distinguishing them from neoclassical models, are the specification of an independent investment function and the assumption that prices change only in response to excess demand in the goods market.! In neoclassical mo ...
NATIONAL ACCOUNTS DATA AND MACROECONOMIC ANALYSIS
... economic subjects. According to the Pasinetti paradox, savings from profits are crucial for the value of domestic aggregate savings (Pasinetti, 1962, 1974). We thus have a relationship between accumulation and profits, where the causation runs from the latter to the former (Arestis, 1992, p. 212). I ...
... economic subjects. According to the Pasinetti paradox, savings from profits are crucial for the value of domestic aggregate savings (Pasinetti, 1962, 1974). We thus have a relationship between accumulation and profits, where the causation runs from the latter to the former (Arestis, 1992, p. 212). I ...
UK BUSINESS CONFIDENCE MONITOR Q1 2009 North West Summary Report
... Firms are also cutting back on other areas of spending, such as capital investment – with a 1.2% contraction expected over the next 12 months following an expansion of just 0.3% over the last year – and research and development budgets, where a 0.4% contraction is expected over the coming year. ...
... Firms are also cutting back on other areas of spending, such as capital investment – with a 1.2% contraction expected over the next 12 months following an expansion of just 0.3% over the last year – and research and development budgets, where a 0.4% contraction is expected over the coming year. ...
Inflation October 18
... in spending. Inflation resulting from an increase in aggregate demand or total spending is called demand-pull inflation. Increases in demand, particularly if production in the economy is near the full-employment level of real GDP, pull up prices. It is not just rising spending. If spending is increa ...
... in spending. Inflation resulting from an increase in aggregate demand or total spending is called demand-pull inflation. Increases in demand, particularly if production in the economy is near the full-employment level of real GDP, pull up prices. It is not just rising spending. If spending is increa ...
PPT
... banks and they withdrew their deposits. 1929-1933: Four waves of bank panics. By 1933, 40% of all American banks failed. BACK TO ...
... banks and they withdrew their deposits. 1929-1933: Four waves of bank panics. By 1933, 40% of all American banks failed. BACK TO ...
UK BUSINESS CONFIDENCE MONITOR Q1 2009 Wales Summary Report
... Wales is now 4.8 points below the current UK level and is 2.1 points above the level reported in Q4 2008. However, this quarter’s modest recovery comes after a 24.4 point fall in the previous quarter when confidence stood at the lowest level recorded in BCM. House prices in Wales have fallen more th ...
... Wales is now 4.8 points below the current UK level and is 2.1 points above the level reported in Q4 2008. However, this quarter’s modest recovery comes after a 24.4 point fall in the previous quarter when confidence stood at the lowest level recorded in BCM. House prices in Wales have fallen more th ...
chap013Answers
... In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis to show the two impacts on real GDP. Both events would be represented by a leftward shift in aggregat ...
... In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis to show the two impacts on real GDP. Both events would be represented by a leftward shift in aggregat ...
Economics for Today 2nd edition Irvin B. Tucker
... velocity of money (V) and the output (Q) variables in the equation of exchange are relatively constant. Given this assumption, changes in the money supply yield proportionate changes in the price level. ...
... velocity of money (V) and the output (Q) variables in the equation of exchange are relatively constant. Given this assumption, changes in the money supply yield proportionate changes in the price level. ...
MACRO SHOCKS AND REAL US STOCK PRICES WITH SPECIAL FOCUS... THE “GREAT RECESSION” Abstract GUPTA, Rangan
... information is the same as with Figure 1 but in a different format. The portfolio shocks are the dominant force changing the real stock prices. The aggregate supply shocks also play a significant role in explaining the variability of stock prices through the quarters. Due to the assumption of money ...
... information is the same as with Figure 1 but in a different format. The portfolio shocks are the dominant force changing the real stock prices. The aggregate supply shocks also play a significant role in explaining the variability of stock prices through the quarters. Due to the assumption of money ...
Chain-weighting: The New Approach to Measuring GDP
... years that are consistently lower than those expressed in 1987 prices (Chart 2). The major reason is that the rapidly growing computer industry, valued in 1987 prices, claims a higher share of output and hence contributes more to growth than it does under the chainweighted procedure. With chain-weig ...
... years that are consistently lower than those expressed in 1987 prices (Chart 2). The major reason is that the rapidly growing computer industry, valued in 1987 prices, claims a higher share of output and hence contributes more to growth than it does under the chainweighted procedure. With chain-weig ...
Chapter 11 All Markets Together. The AS-AD
... real money supply in each year, you would find that in America the real money supply increased from 1929 to 1932 while output continued to fall over these years. In Canada, where output fell by 30% between 1929 and 1933, the real money supply fell by only 5%. The real money supply in both countries ...
... real money supply in each year, you would find that in America the real money supply increased from 1929 to 1932 while output continued to fall over these years. In Canada, where output fell by 30% between 1929 and 1933, the real money supply fell by only 5%. The real money supply in both countries ...
macro - uc-davis economics
... of production factors (i.e., there can be unemployment and capital underutilization) Short-run frictions prevent full factor utilization in the short-run and distort optimal economic ...
... of production factors (i.e., there can be unemployment and capital underutilization) Short-run frictions prevent full factor utilization in the short-run and distort optimal economic ...
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%.