Annual Economic Outlook 2016
... a time when commodity prices have slumped. – Following the temporary recovery in the price of oil between March and May 2015 to US$6065 per barrel, prices fell again in Q3 2015 and Q4 2015, with the West Texas Intermediate oil price falling below US$40 per barrel in December. I believe that oil pri ...
... a time when commodity prices have slumped. – Following the temporary recovery in the price of oil between March and May 2015 to US$6065 per barrel, prices fell again in Q3 2015 and Q4 2015, with the West Texas Intermediate oil price falling below US$40 per barrel in December. I believe that oil pri ...
Monetary expansion raises AD in the SR
... including monetary & fiscal policy, now goes into the AD relationship, but holds only for a give price level P. • The Aggregate Demand curve allows the price level to vary. API-120 - Prof. J. Frankel, Harvard University ...
... including monetary & fiscal policy, now goes into the AD relationship, but holds only for a give price level P. • The Aggregate Demand curve allows the price level to vary. API-120 - Prof. J. Frankel, Harvard University ...
Business Cycle
... But unemployment was not the only indication of difficult economic times. All aspects of the economy were bad. Total production declined about 40 percent. Expenditures on production by all four sectors (household, business, government, and foreign) were all down, too. Consumption by the household s ...
... But unemployment was not the only indication of difficult economic times. All aspects of the economy were bad. Total production declined about 40 percent. Expenditures on production by all four sectors (household, business, government, and foreign) were all down, too. Consumption by the household s ...
Problem Sheet 1
... supply growth. It follows that differences in nominal interest rates may be due to differences in inflation rates. There may be some difference in real interest rates, but if we suppose these are small, then we predict that Bolivia, Russia, and Turkey have higher inflation, and Japan has lower infla ...
... supply growth. It follows that differences in nominal interest rates may be due to differences in inflation rates. There may be some difference in real interest rates, but if we suppose these are small, then we predict that Bolivia, Russia, and Turkey have higher inflation, and Japan has lower infla ...
Chapter 11
... Aggregate supply curve is a curve that shows the amount of real output or GDP that is for sale at various prices. In this case, Aggregate supply (AS) curve can be divided into 3 ranges. a- Horizontal range: This portion of AS curve is horizontal and the price level is fixed. It is called Keynisian s ...
... Aggregate supply curve is a curve that shows the amount of real output or GDP that is for sale at various prices. In this case, Aggregate supply (AS) curve can be divided into 3 ranges. a- Horizontal range: This portion of AS curve is horizontal and the price level is fixed. It is called Keynisian s ...
ESCAP High-level Policy Dialogue
... commodity prices have stronger & longer‐lasting effects on inflation since food & energy account for a large share of CPI basket & where pass‐ through from global commodity prices is higher CBs typically accommodate first‐round effects as these price pressures lead to relative price shifts, ...
... commodity prices have stronger & longer‐lasting effects on inflation since food & energy account for a large share of CPI basket & where pass‐ through from global commodity prices is higher CBs typically accommodate first‐round effects as these price pressures lead to relative price shifts, ...
Sample Final Exam, Spring 2013
... 50. A former Governor of the Bank of Canada argued that interest rates must be increased in order to reduce inflation, and this would ultimately result in lower interest rates. This apparent contradiction can be explained by noting that a) higher interest rates in the short run put downward pressure ...
... 50. A former Governor of the Bank of Canada argued that interest rates must be increased in order to reduce inflation, and this would ultimately result in lower interest rates. This apparent contradiction can be explained by noting that a) higher interest rates in the short run put downward pressure ...
Module Productivity and Growth
... Latin America’s Disappointment • Education—especially broad basic education—has been underemphasized: even Latin American nations rich in natural resources often failed to channel that wealth into their educational systems. • And political instability, leading to irresponsible economic policies, ha ...
... Latin America’s Disappointment • Education—especially broad basic education—has been underemphasized: even Latin American nations rich in natural resources often failed to channel that wealth into their educational systems. • And political instability, leading to irresponsible economic policies, ha ...
financial crisis of 2007 to the present
... $41.8 billion in May 2003. World production may be outpacing demand, particularly in some sectors such as capital goods and consumer durable goods. ...
... $41.8 billion in May 2003. World production may be outpacing demand, particularly in some sectors such as capital goods and consumer durable goods. ...
Midterm #2
... If utilization rates of capital and labor behave procyclically, then we would expect to observe in the data that: a. average labor productivity would be counter-cyclical. b. real wages would be procyclical. c. total factor productivity would be procyclical. d. Okun's Law would show that a less than ...
... If utilization rates of capital and labor behave procyclically, then we would expect to observe in the data that: a. average labor productivity would be counter-cyclical. b. real wages would be procyclical. c. total factor productivity would be procyclical. d. Okun's Law would show that a less than ...
Mankiw 6e PowerPoints
... For this chapter’s intro to the AD/AS model, we use a simple theory of aggregate demand based on the quantity theory of money. ...
... For this chapter’s intro to the AD/AS model, we use a simple theory of aggregate demand based on the quantity theory of money. ...
Economic Growth
... Describe long-term growth trends In the United States Explain growth accounting Explain that growth accounting shows that to achieve increased economic growth, economies must increase the growth, economies must increase growth rate of capital stock or increase technological development. Explain how ...
... Describe long-term growth trends In the United States Explain growth accounting Explain that growth accounting shows that to achieve increased economic growth, economies must increase the growth, economies must increase growth rate of capital stock or increase technological development. Explain how ...
An overview of the South African macro
... eliminated. Secondly, the figures should also be adjusted for population growth. In other words, they should be expressed in per capita terms. The growth in total production (economic growth) can be measured by calculating the percentage change in the real gross domestic product (GDP) from one year ...
... eliminated. Secondly, the figures should also be adjusted for population growth. In other words, they should be expressed in per capita terms. The growth in total production (economic growth) can be measured by calculating the percentage change in the real gross domestic product (GDP) from one year ...
Week 8 Practice Quiz a Answers
... shifts right when real money supply (M/P) increases (or changes in inflation expectations – but we have not focused on that). M/P increases only when M increases or P falls. I told you in the question stem to assume that P is fixed (unless told otherwise). So, basically, the only true answer would b ...
... shifts right when real money supply (M/P) increases (or changes in inflation expectations – but we have not focused on that). M/P increases only when M increases or P falls. I told you in the question stem to assume that P is fixed (unless told otherwise). So, basically, the only true answer would b ...
Business cycles recessions and economic booms
... increase their power, and ask for, and gain wage increases. These higher costs feed through to price increases. This domestic inflation means that exports become harder to make as they are dearer, so aggregate demand falls, and the downswing commences automatically. 13. The multiplier-accelerator ev ...
... increase their power, and ask for, and gain wage increases. These higher costs feed through to price increases. This domestic inflation means that exports become harder to make as they are dearer, so aggregate demand falls, and the downswing commences automatically. 13. The multiplier-accelerator ev ...
Global Forecast Update - Global Banking and Markets
... increasing activity in the manufacturing sectors in the central provinces that will benefit from the U.S. revival and a much lowervalued Canadian dollar. Domestic demand will be supported by continuing, albeit slower job growth, and low interest rates, though high household debt will remain a drag o ...
... increasing activity in the manufacturing sectors in the central provinces that will benefit from the U.S. revival and a much lowervalued Canadian dollar. Domestic demand will be supported by continuing, albeit slower job growth, and low interest rates, though high household debt will remain a drag o ...
ECONOMICS why study it?
... begin when unemployment rate is above the natural rate of unemployment. In fact, the natural rate of unemployment is defined as the rate of unemployment at which the inflation rate remains constant. Another way of defining the natural rate of unemployment is to simply tie it to the level of real GDP ...
... begin when unemployment rate is above the natural rate of unemployment. In fact, the natural rate of unemployment is defined as the rate of unemployment at which the inflation rate remains constant. Another way of defining the natural rate of unemployment is to simply tie it to the level of real GDP ...
How Did Economists Get It So Wrong?
... market” theory, which asserted that financial markets always get asset prices right given the available information. Meanwhile, many macroeconomists completely rejected Keynes’s framework for understanding economic slumps. Some returned to the view of Schumpeter and other apologists for the Great De ...
... market” theory, which asserted that financial markets always get asset prices right given the available information. Meanwhile, many macroeconomists completely rejected Keynes’s framework for understanding economic slumps. Some returned to the view of Schumpeter and other apologists for the Great De ...
President’s Report Board Directors
... disasters. Despite the recent downturn in data, economic growth is expected to pick up a bit in the coming months. Initial claims for unemployment insurance eased a bit in May, but remain uncomfortably high. Consumer attitudes were mixed in May as measures of future expectations moved in opposite di ...
... disasters. Despite the recent downturn in data, economic growth is expected to pick up a bit in the coming months. Initial claims for unemployment insurance eased a bit in May, but remain uncomfortably high. Consumer attitudes were mixed in May as measures of future expectations moved in opposite di ...
Suppose that this year`s money supply is $500 Bil
... 1. (20 pts) Suppose that this year’s money supply is $500 Billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. a. What is the Price level? What is the Velocity of Money? b. Suppose the Velocity of money is constant and the economy’s output of goods and services increases by 5% per year ...
... 1. (20 pts) Suppose that this year’s money supply is $500 Billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. a. What is the Price level? What is the Velocity of Money? b. Suppose the Velocity of money is constant and the economy’s output of goods and services increases by 5% per year ...
price level
... what something is sold for (output prices) but not what it costs to produce (input prices). This causes profits to increase and additional productivity to follow. (In this way, it is very similar to our micro-supply curve…greater profits to the supplier induce greater output.) iii. SRAS is convex be ...
... what something is sold for (output prices) but not what it costs to produce (input prices). This causes profits to increase and additional productivity to follow. (In this way, it is very similar to our micro-supply curve…greater profits to the supplier induce greater output.) iii. SRAS is convex be ...
Chapter 10 Slides
... slowly. Consumption is a positive function of permanent income. • Therefore, consumption expenditures should change slowly. • And the nominal value of transactions should change slowly. • According to the transaction form of the equation of exchange (and the Quantity Theory), M=kPT; money demand is ...
... slowly. Consumption is a positive function of permanent income. • Therefore, consumption expenditures should change slowly. • And the nominal value of transactions should change slowly. • According to the transaction form of the equation of exchange (and the Quantity Theory), M=kPT; money demand is ...
President’s Report Board Directors
... Data released since your last Directors' meeting show the economy grew in the third quarter at a higher rate than first estimated and also suggest fourth quarter growth is likely to be in line with the growth seen over the previous six months. General areas of strength and weakness remain mostly the ...
... Data released since your last Directors' meeting show the economy grew in the third quarter at a higher rate than first estimated and also suggest fourth quarter growth is likely to be in line with the growth seen over the previous six months. General areas of strength and weakness remain mostly the ...
GRAPHS: https://clearspace
... domestically, Beijing has few good choices. It must keep enough cash flowing to maintain economic growth and social stability in the short term while tightening credit to avoid a tsunami of bad loans and a market collapse over the long term. Certainly, Beijing don’t want to face the kind of collapse ...
... domestically, Beijing has few good choices. It must keep enough cash flowing to maintain economic growth and social stability in the short term while tightening credit to avoid a tsunami of bad loans and a market collapse over the long term. Certainly, Beijing don’t want to face the kind of collapse ...
Aggregate Demand/Aggregate Supply Model Differences
... respond to the higher prices and reduced output with government policy. One logical approach would be to increase aggregate demand so that output returns to full employment levels. If we shift the aggregate demand curve outwards by increasing government spending, by monetary policy to lower interest ...
... respond to the higher prices and reduced output with government policy. One logical approach would be to increase aggregate demand so that output returns to full employment levels. If we shift the aggregate demand curve outwards by increasing government spending, by monetary policy to lower interest ...
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%.