Word Document
... Say’s Law – total supply of goods and services will equal total demand derived from consumption; a general glut (economy-wide over-supply) is impossible money illusion – nominal vs. real confusion (wages or prices) crowding out – fiscal policy is ineffective because a rise in government spendi ...
... Say’s Law – total supply of goods and services will equal total demand derived from consumption; a general glut (economy-wide over-supply) is impossible money illusion – nominal vs. real confusion (wages or prices) crowding out – fiscal policy is ineffective because a rise in government spendi ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... "Money, Quantity Theory." In International Encyclopedia of the Social Sciences, pp. 432—47. New York: Macmillan and Free Press, 1968. (a) "The Role of Monetary Policy." A.E.R. (March 1968), pp. 1—17. (b) Reprinted in Friedman (1969). The Optimum Quantity of Money and Other Essays. Chicago: ...
... "Money, Quantity Theory." In International Encyclopedia of the Social Sciences, pp. 432—47. New York: Macmillan and Free Press, 1968. (a) "The Role of Monetary Policy." A.E.R. (March 1968), pp. 1—17. (b) Reprinted in Friedman (1969). The Optimum Quantity of Money and Other Essays. Chicago: ...
President’s Report Board Directors
... The housing market showed mixed signs in January. New home sales declined for the fourth time in six months, and existing home sales slowed for the fifth straight month. Despite the slower sales, housing starts and permits both increased in January. In the manufacturing sector, the ISM manufacturing ...
... The housing market showed mixed signs in January. New home sales declined for the fourth time in six months, and existing home sales slowed for the fifth straight month. Despite the slower sales, housing starts and permits both increased in January. In the manufacturing sector, the ISM manufacturing ...
Toward Free-Market Money
... Many would be happy to sweep these issues under the table because, in their view, the economy has (until recently) been doing great, and the Fed deserves much of the credit. Even with the recent economic slide, going back to the start of 1995, the S&P 500 has increased 2.5 times (through 8/31/01) an ...
... Many would be happy to sweep these issues under the table because, in their view, the economy has (until recently) been doing great, and the Fed deserves much of the credit. Even with the recent economic slide, going back to the start of 1995, the S&P 500 has increased 2.5 times (through 8/31/01) an ...
Module 18-SRAS
... Have workers work harder by increasing the length of the work and the number of days worked Switch workers from uncounted production to counted production that generates output With labor being paid in nominal wages based on yearly contracts, employers are paying less in wages than the increase in t ...
... Have workers work harder by increasing the length of the work and the number of days worked Switch workers from uncounted production to counted production that generates output With labor being paid in nominal wages based on yearly contracts, employers are paying less in wages than the increase in t ...
Company Name - University of Wisconsin–La Crosse
... shows the relationship between the aggregate price level and the quantity of aggregate output supplied when all prices are flexible. ...
... shows the relationship between the aggregate price level and the quantity of aggregate output supplied when all prices are flexible. ...
Liquidity Trap - Portland State University
... monetary base leads to more than one-unit change in money supply – the ratio between the two is referred as the money multiplier and is usually greater than one (see Money supply). The reason for this relationship is that banks do not have any incentives to hold reserves, which typically do not earn ...
... monetary base leads to more than one-unit change in money supply – the ratio between the two is referred as the money multiplier and is usually greater than one (see Money supply). The reason for this relationship is that banks do not have any incentives to hold reserves, which typically do not earn ...
An Introduction to Monetary Policy Rules
... As policymakers seek to prevent another financial crisis, they are scrutinizing the role the Federal Reserve (Fed) played before and during the 2008 crisis. The Fed currently exercises a great deal of discretion in monetary policy. A key point of debate is whether requiring the Fed to follow a speci ...
... As policymakers seek to prevent another financial crisis, they are scrutinizing the role the Federal Reserve (Fed) played before and during the 2008 crisis. The Fed currently exercises a great deal of discretion in monetary policy. A key point of debate is whether requiring the Fed to follow a speci ...
Chapter 16
... • Average rate of growth • 1.5% per year 1973-1995 • 2.8% per year 1995-2009 • Affects real output, real income, and real ...
... • Average rate of growth • 1.5% per year 1973-1995 • 2.8% per year 1995-2009 • Affects real output, real income, and real ...
Learning Outcomes. By the end of the course students should be
... economy works. In this setting there is a clear separation between the determinants of real and nominal variables: the ‘classical dichotomy’. Basically, output, employment and relative prices, including the real interest rate, are independent of the amount of money, which only determines long-run in ...
... economy works. In this setting there is a clear separation between the determinants of real and nominal variables: the ‘classical dichotomy’. Basically, output, employment and relative prices, including the real interest rate, are independent of the amount of money, which only determines long-run in ...
Eco120Int_Lecture11
... Long-run in the AD-AS model • So far, all the macroeconomics we have done is short-run. • In terms of a story, we have: – A beginning where the economy starts off in long-run equilibrium at the natural rate of output and some price level; and – A middle where some shock occurs and the economy is af ...
... Long-run in the AD-AS model • So far, all the macroeconomics we have done is short-run. • In terms of a story, we have: – A beginning where the economy starts off in long-run equilibrium at the natural rate of output and some price level; and – A middle where some shock occurs and the economy is af ...
Chapter 11 - McGraw Hill Higher Education - McGraw
... When would you be more likely to put money in your savings account: when interest rates are high or low? (Hint: Think about opportunity costs of keeping cash.) ...
... When would you be more likely to put money in your savings account: when interest rates are high or low? (Hint: Think about opportunity costs of keeping cash.) ...
Economics 259 Final Exam – Spring 2014 Name: Before beginning
... 20. IS-LM and AD-AS in the Long run (10 points) A major shopping store-chain Target experiences a security breach where a significant amount of consumers’ credit card data is stolen. As a response, people limit their use of credit cards and resort to using cash. Assume that the United States is a c ...
... 20. IS-LM and AD-AS in the Long run (10 points) A major shopping store-chain Target experiences a security breach where a significant amount of consumers’ credit card data is stolen. As a response, people limit their use of credit cards and resort to using cash. Assume that the United States is a c ...
Answers 2008 Exam
... (D) Growth is an increase in productive capacity. Savings is income not spent. Investment is buying stock/capital goods (E) Because an increase in savings means the financial intermediaries have more funds to lend to firms as loans for investment so investment can increase. More capital goods result ...
... (D) Growth is an increase in productive capacity. Savings is income not spent. Investment is buying stock/capital goods (E) Because an increase in savings means the financial intermediaries have more funds to lend to firms as loans for investment so investment can increase. More capital goods result ...
Reflections On Hayek’s Business Cycle Theory
... without central economic planning. But it is true that the European recovery could not have proceeded so rapidly and smoothly without U.S. aid under the Marshall Plan, and that the replacement of the gold standard by the Bretton Woods system and the tariff reductions under the GATT were essential fo ...
... without central economic planning. But it is true that the European recovery could not have proceeded so rapidly and smoothly without U.S. aid under the Marshall Plan, and that the replacement of the gold standard by the Bretton Woods system and the tariff reductions under the GATT were essential fo ...
Boom or Bust - kristinaaustin
... Contraction. When the demand for goods and services starts to fall and unemployment rises, the peak has passed. The business cycle has entered its third phase, known as contraction. This is considered to be a bad time for consumers and businesses. Consumers are spending less and saving more—buying o ...
... Contraction. When the demand for goods and services starts to fall and unemployment rises, the peak has passed. The business cycle has entered its third phase, known as contraction. This is considered to be a bad time for consumers and businesses. Consumers are spending less and saving more—buying o ...
Chapters 12 and 13 Economic Indicators
... 1. Recession. It is defined as a decline in the real GDP that occurs for at least two or more quarters. Recessions feed on themselves. During a recession, business people spend less than they once did. Because sales are failing, businesses do what they can to reduce their spending. They lay off wor ...
... 1. Recession. It is defined as a decline in the real GDP that occurs for at least two or more quarters. Recessions feed on themselves. During a recession, business people spend less than they once did. Because sales are failing, businesses do what they can to reduce their spending. They lay off wor ...
Economic growth - Woodhaven High School
... Since 1950, real GDP has increased about sixfold but the ...
... Since 1950, real GDP has increased about sixfold but the ...
Exam Answers
... e) Real wages remained unchanged because of the indexing of union wages to inflation, and as a result, labor costs also remained unchanged. 23. In his assigned article on the U.S. economic outlook, Saul Hymans argued that the number of jobs in the U.S. had expanded in November by substantially more ...
... e) Real wages remained unchanged because of the indexing of union wages to inflation, and as a result, labor costs also remained unchanged. 23. In his assigned article on the U.S. economic outlook, Saul Hymans argued that the number of jobs in the U.S. had expanded in November by substantially more ...
THE IMPACT OF LENDING ACTIVITY AND MONETARY POLICY IN
... quarterly increases 80% of the time between 1975 and 2008 (see Figure 1). Prices peaked in February 2007, remained stagnant for the rest of that year and then began to fall through 2008, with prices in January 2009 having fallen by 1.4% month-onmonth and 9.8% year-on-year. This paper seeks to explai ...
... quarterly increases 80% of the time between 1975 and 2008 (see Figure 1). Prices peaked in February 2007, remained stagnant for the rest of that year and then began to fall through 2008, with prices in January 2009 having fallen by 1.4% month-onmonth and 9.8% year-on-year. This paper seeks to explai ...
PROSPECTS FOR 2002-2003 PROSPECTS FOR 2002
... The stock market will correct. Most likely, sometime during 2002 or 2003, a very large correction will come. Stock prices will fall by a large amount. ...
... The stock market will correct. Most likely, sometime during 2002 or 2003, a very large correction will come. Stock prices will fall by a large amount. ...
Economic Study Notes Inflation - The description of inflation
... nominal wages are unable to keep up with the rate of inflation – real incomes and subsequent purchasing power will fall. Individuals whose incomes rise faster than the rate of inflation experience an increase in real incomes Income distribution becomes more unequal than before inflation. Speculators ...
... nominal wages are unable to keep up with the rate of inflation – real incomes and subsequent purchasing power will fall. Individuals whose incomes rise faster than the rate of inflation experience an increase in real incomes Income distribution becomes more unequal than before inflation. Speculators ...
Expansionary and Contractionary Monetary Policy
... slashed interest rates to their lowest levels since August 1994. Between January 2001 and August 2001, the Fed cut the federal funds rate target by 3 percentage points, clearly demonstrating that it was concerned that the economy was dangerously close to falling into a recession. Then came the event ...
... slashed interest rates to their lowest levels since August 1994. Between January 2001 and August 2001, the Fed cut the federal funds rate target by 3 percentage points, clearly demonstrating that it was concerned that the economy was dangerously close to falling into a recession. Then came the event ...
... Current Economic Developments - December 11, 2003 Data released since your last Directors' meeting show the economy is gaining strength as the manufacturing sector continues to improve and the labor market finally shows signs of growth. In November, payroll employment posted its fourth consecutive i ...
Stages of the Business Cycle
... a) Higher sales due to rising consumer incomes b) Lower fixed costs due to lower interest rates c) Less risk of the business becoming insolvent d) More difficult to recruit employees e) Lower demand due to business closures f) Lower prices on goods bought from suppliers ...
... a) Higher sales due to rising consumer incomes b) Lower fixed costs due to lower interest rates c) Less risk of the business becoming insolvent d) More difficult to recruit employees e) Lower demand due to business closures f) Lower prices on goods bought from suppliers ...
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%.