- Indiana State University
... relative to the output price deflator for business sector output. The effects of higher energy prices on the general level of prices also take time to work their way through the economy. Thus the maximum effects of last years’ higher energy prices are still coming. Oil prices raise energy prices and ...
... relative to the output price deflator for business sector output. The effects of higher energy prices on the general level of prices also take time to work their way through the economy. Thus the maximum effects of last years’ higher energy prices are still coming. Oil prices raise energy prices and ...
Chapter 5 - Denton ISD
... Before and during Great Depression After Great Depression to early 1970s The Age of Keynes From early 1970s to early 1980s ...
... Before and during Great Depression After Great Depression to early 1970s The Age of Keynes From early 1970s to early 1980s ...
Gross Domestic Product
... GDP and Population Growth In order to account for population increases in an economy, economists use a measurement of real GDP per capita. It is a measure of real GDP divided by the total population. Real GDP per capita is considered the best measure of a nation’s standard of living. GDP and Qua ...
... GDP and Population Growth In order to account for population increases in an economy, economists use a measurement of real GDP per capita. It is a measure of real GDP divided by the total population. Real GDP per capita is considered the best measure of a nation’s standard of living. GDP and Qua ...
Sample Questions_Chap 24
... A) Potential output is rising, putting upward pressure on wages. B) The aggregate supply curve is shifting to the right, which is causing wages to rise. C) The aggregate demand curve is shifting to the right, causing wages to rise. D) The inflationary gap generates excess demand for labour, which ca ...
... A) Potential output is rising, putting upward pressure on wages. B) The aggregate supply curve is shifting to the right, which is causing wages to rise. C) The aggregate demand curve is shifting to the right, causing wages to rise. D) The inflationary gap generates excess demand for labour, which ca ...
Midterm #2
... Suppose in the neo-classical (Solow) growth model, Country A and Country B share the same technology, same depreciation rate of capital, same savings rate, and same population growth rate. Country A has a higher initial capital-labor ratio than Country B. Which is also true? a. Country A will have a ...
... Suppose in the neo-classical (Solow) growth model, Country A and Country B share the same technology, same depreciation rate of capital, same savings rate, and same population growth rate. Country A has a higher initial capital-labor ratio than Country B. Which is also true? a. Country A will have a ...
EC 102
... Velocity in the country of Aquilonia is always stable. In 2002, the money supply was $100 billion, nominal GDP was $500 billion, and the real interest rate was 3 percent. In 2003, the money supply was $105 billion and real GDP did not change from its level in 2002. The nominal interest rate in 2003 ...
... Velocity in the country of Aquilonia is always stable. In 2002, the money supply was $100 billion, nominal GDP was $500 billion, and the real interest rate was 3 percent. In 2003, the money supply was $105 billion and real GDP did not change from its level in 2002. The nominal interest rate in 2003 ...
Capital Markets Review
... using two different labor force surveys conducted by As of December 31, 2014, +/- 1 standard deviation the United States Census Bureau and the Bureau of of historical month-end values have ranged from labor Statistics that gather employment statistics monthly. The data reported here is seasonally ad ...
... using two different labor force surveys conducted by As of December 31, 2014, +/- 1 standard deviation the United States Census Bureau and the Bureau of of historical month-end values have ranged from labor Statistics that gather employment statistics monthly. The data reported here is seasonally ad ...
EC-602 MACROECONOMICS
... save part of it – won’t that cause the amount of national income spent to be too small to buy all the output we have made? No, the Classical economists said, because businesses don’t intend to sell all their output to consumers anyway. To keep the analysis simple, imagine the economy only has consum ...
... save part of it – won’t that cause the amount of national income spent to be too small to buy all the output we have made? No, the Classical economists said, because businesses don’t intend to sell all their output to consumers anyway. To keep the analysis simple, imagine the economy only has consum ...
Slide 1
... Social Impact of the Crisis • With per capita income and social spending rising in the oil exporters, poverty is expected to fall • In the oil importers, despite some increase in social spending, poverty is expected to pick up via the following channels: – Disposable income is projected to drop by ...
... Social Impact of the Crisis • With per capita income and social spending rising in the oil exporters, poverty is expected to fall • In the oil importers, despite some increase in social spending, poverty is expected to pick up via the following channels: – Disposable income is projected to drop by ...
Aggregate Supply
... • To Analyze changes in real GDP & price level simultaneously • Provides insights on inflation, unemployment, & economic growth • Aggregate Demand – Amounts of real output – Buyers collectively desire – At each possible price level ...
... • To Analyze changes in real GDP & price level simultaneously • Provides insights on inflation, unemployment, & economic growth • Aggregate Demand – Amounts of real output – Buyers collectively desire – At each possible price level ...
What have we Learned
... 1931 and a deficit of 4 percent of GDP in 1932. The bulk of the increase in 1932 was due to a decrease in tax collections caused by the sharp contraction in income rather than to autonomous fiscal policy. Although the deficit share in GDP increased under Roosevelt, reaching a peak of 5.9 percent in ...
... 1931 and a deficit of 4 percent of GDP in 1932. The bulk of the increase in 1932 was due to a decrease in tax collections caused by the sharp contraction in income rather than to autonomous fiscal policy. Although the deficit share in GDP increased under Roosevelt, reaching a peak of 5.9 percent in ...
Economic Indicators and Measurements
... services produced within a nation in a given time period. GDP includes spending by households, on durable and nondurable goods and on services; business investment, both fixed investment in capital goods and inventory investment in unsold goods; government spending; and net exports, the value of all ...
... services produced within a nation in a given time period. GDP includes spending by households, on durable and nondurable goods and on services; business investment, both fixed investment in capital goods and inventory investment in unsold goods; government spending; and net exports, the value of all ...
Three Items for the Macroeconomic Agenda
... Bringing Keynes up to code6 does not make his theory of the 1930's relevant to the 1990's, however. A relentless passion for saving has not been a pervasive problem among the Western countries and those countries in East who have had the 'problem' do not seem to have suffered from it. Yet, intertemp ...
... Bringing Keynes up to code6 does not make his theory of the 1930's relevant to the 1990's, however. A relentless passion for saving has not been a pervasive problem among the Western countries and those countries in East who have had the 'problem' do not seem to have suffered from it. Yet, intertemp ...
Working with our basic Aggregate Demand / Supply Model
... 1. The end of the housing bubble. A speculative bubble contributed to the rapidly rising housing prices between 2002 and 2005 before deflating in 2006, as both new home sales and existing home values began to decline. The growth of aggregate demand slowed as spending on residential construction fell ...
... 1. The end of the housing bubble. A speculative bubble contributed to the rapidly rising housing prices between 2002 and 2005 before deflating in 2006, as both new home sales and existing home values began to decline. The growth of aggregate demand slowed as spending on residential construction fell ...
Document
... exams. Although you are not required to submit your answers, we will discuss the solutions in class. Your participation will count for 10% of the final grade. ...
... exams. Although you are not required to submit your answers, we will discuss the solutions in class. Your participation will count for 10% of the final grade. ...
Unemployment
... • The upward sloping aggregate supply curve is a short-run supply curve. • Why? – As time passes, nominal wages will adjust to the excess demand or excess supply. • If the real wage has fallen because of a rise in the price level, nominal wages will rise. • If the real wage has risen because of a fa ...
... • The upward sloping aggregate supply curve is a short-run supply curve. • Why? – As time passes, nominal wages will adjust to the excess demand or excess supply. • If the real wage has fallen because of a rise in the price level, nominal wages will rise. • If the real wage has risen because of a fa ...
Keynesian vs. monetarist/new classical view
... final prices. For example, if the price level increases by 5% and wages and other factor prices also increase by 5% then real factor costs and real wages have not changed. This means that there is in fact no increase in the real price level and therefore no real inducement for an increase in output. ...
... final prices. For example, if the price level increases by 5% and wages and other factor prices also increase by 5% then real factor costs and real wages have not changed. This means that there is in fact no increase in the real price level and therefore no real inducement for an increase in output. ...
Terms of Trade and Economic Growth in a World of
... countries, which is taken to be exogenous. The return to H-capital, on the other hand, may var among countries. However, since investors always have the opportunity to ...
... countries, which is taken to be exogenous. The return to H-capital, on the other hand, may var among countries. However, since investors always have the opportunity to ...
Real consequences of financial crises
... activity beyond those of a normal recession? What are the arguments and what is the evidence? Can we identify a specific pattern of output developments in the aftermath of a major financial crisis, which could help economic policy decisions? One obvious possible source of a financial crisis’s long-t ...
... activity beyond those of a normal recession? What are the arguments and what is the evidence? Can we identify a specific pattern of output developments in the aftermath of a major financial crisis, which could help economic policy decisions? One obvious possible source of a financial crisis’s long-t ...
Macroeconomic Situations and Policy Adjustments in China
... reforms, at the same time, promoting reforms in the fields of health care, education, social security, and housing. These reforms promoted macroeconomic management system to change from a planned economy to a market economy, learning from the mature market economies and macro-management mode, establ ...
... reforms, at the same time, promoting reforms in the fields of health care, education, social security, and housing. These reforms promoted macroeconomic management system to change from a planned economy to a market economy, learning from the mature market economies and macro-management mode, establ ...
Untitled
... in the real value of their holdings of fixed nominal value assets (thanks to a larger than average increase in their holdings of helicopter-dropped money or through deflation) or a fall in the real value of their fixed nominal value debt (through inflation) are just offset by a fall in spending by a ...
... in the real value of their holdings of fixed nominal value assets (thanks to a larger than average increase in their holdings of helicopter-dropped money or through deflation) or a fall in the real value of their fixed nominal value debt (through inflation) are just offset by a fall in spending by a ...
Macro in Context - Tufts University
... a major concern. The United Nations estimates that about 1.2 billion people—or about 20% of the world’s population—live in absolute poverty, subsisting on the equivalent of U.S. $1 per day or less. The production of more and better housing, better roads, more grain, more schooling, and more medical ...
... a major concern. The United Nations estimates that about 1.2 billion people—or about 20% of the world’s population—live in absolute poverty, subsisting on the equivalent of U.S. $1 per day or less. The production of more and better housing, better roads, more grain, more schooling, and more medical ...
Price inflation and the agribusiness industry
... Directors at the time of its organization some 27 years ago. As you glance out your office window this particular morning, you see Bob driving his pickup into the loading area on the south side of your store’s warehouse. It’s a pattern which has been repeated every 8 to 10 weeks for as long as you c ...
... Directors at the time of its organization some 27 years ago. As you glance out your office window this particular morning, you see Bob driving his pickup into the loading area on the south side of your store’s warehouse. It’s a pattern which has been repeated every 8 to 10 weeks for as long as you c ...
Throughout the interwar period the United States had
... such as DDT and 2,4-D also raised farm productivity. Farm prices increased. The rising productivity and prices raised farm incomes, allowing farmers to reduce their mortgage indebtedness by 28 percent. Unlike during the First World War, few farmers went deeply into debt to expand. Industry. Manufact ...
... such as DDT and 2,4-D also raised farm productivity. Farm prices increased. The rising productivity and prices raised farm incomes, allowing farmers to reduce their mortgage indebtedness by 28 percent. Unlike during the First World War, few farmers went deeply into debt to expand. Industry. Manufact ...
Open Economy Macroeconomics: Basic Concepts
... Vocabulary Flash Cards: vocabulary associated with Macroeconomics will be emphasized throughout the course. Students will be responsible through various assignments for incorporating and highlighting important vocabulary terms and applying them to real-world contexts. All students will create their ...
... Vocabulary Flash Cards: vocabulary associated with Macroeconomics will be emphasized throughout the course. Students will be responsible through various assignments for incorporating and highlighting important vocabulary terms and applying them to real-world contexts. All students will create their ...
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%.