Inflation - SP Moodle
... people may spend more now. – Would this lead to more or less inflation? ...
... people may spend more now. – Would this lead to more or less inflation? ...
Power Point - U of T : Economics
... theme of European economic history, from the 12th century to present day, the Price Revolution era is unique: • - longest sustained period of inflation ever recorded, • - importance: changes in both the price level (CPI) and changes in relative prices often had very major impacts on economic changes ...
... theme of European economic history, from the 12th century to present day, the Price Revolution era is unique: • - longest sustained period of inflation ever recorded, • - importance: changes in both the price level (CPI) and changes in relative prices often had very major impacts on economic changes ...
Chapter 13 Unemployment and Inflation
... Affects of Inflation Reduces purchasing power People on fixed incomes, such as social security, unemployment, and investment proceeds (CD’s, preferred stock dividends) are negatively effected. The greater the inflation rate, interest earned on savings loses value – can buy less with the money y ...
... Affects of Inflation Reduces purchasing power People on fixed incomes, such as social security, unemployment, and investment proceeds (CD’s, preferred stock dividends) are negatively effected. The greater the inflation rate, interest earned on savings loses value – can buy less with the money y ...
the causes of deflation and some selected
... income on the consumption. Moreover, if there are unfavourable expectations of the future development, people will postpone the consumption. It also illustrates the case of the Japanese economy where savings have been growing even in the situation of the zero nominal interests.3 Both situations “slo ...
... income on the consumption. Moreover, if there are unfavourable expectations of the future development, people will postpone the consumption. It also illustrates the case of the Japanese economy where savings have been growing even in the situation of the zero nominal interests.3 Both situations “slo ...
A rise in the price of oil imports has resulted in a decrease of short
... a. We have paper money backed by government held gold. b. We have coins made from valuable metals. c. We use the barter system in which people trade goods for goods. d. We have paper money based on the government's legal authority to create money. 8. What is it that gives paper currency its value? a ...
... a. We have paper money backed by government held gold. b. We have coins made from valuable metals. c. We use the barter system in which people trade goods for goods. d. We have paper money based on the government's legal authority to create money. 8. What is it that gives paper currency its value? a ...
MACRO Study Guide Before AP 2016
... shifts left or right as the Fed buys or sells bonds. Money Demand Graph is the desire to “hold” money. It is based on speculative demand, precautionary demand & price level. So we hold more money when consumers get ‘scared”. You rarely shift MD on AP tests but sometimes they do require it! The loana ...
... shifts left or right as the Fed buys or sells bonds. Money Demand Graph is the desire to “hold” money. It is based on speculative demand, precautionary demand & price level. So we hold more money when consumers get ‘scared”. You rarely shift MD on AP tests but sometimes they do require it! The loana ...
ECO 120- Macroeconomics
... of money required to make the purchases people will wish to make. • But a $1 in your pocket is a $1 not in the bank. In the bank, that $1 would be accumulating interest, but in your pocket, it accumulates no interest. So the interest rate is the price of holding money as currency rather than as a de ...
... of money required to make the purchases people will wish to make. • But a $1 in your pocket is a $1 not in the bank. In the bank, that $1 would be accumulating interest, but in your pocket, it accumulates no interest. So the interest rate is the price of holding money as currency rather than as a de ...
economic polices to control inflation
... temporary working along with the expansion of flexible working hours are all moves that have increased flexibility in the labour market. If this does allow firms to control their labour costs it may reduce cost push inflationary pressure. Supply side reforms If a greater output can be produced at ...
... temporary working along with the expansion of flexible working hours are all moves that have increased flexibility in the labour market. If this does allow firms to control their labour costs it may reduce cost push inflationary pressure. Supply side reforms If a greater output can be produced at ...
The Radical Implications of Stable, Quiet Inflation
... Really active NK, no one expected it to last? (A: Japan?) Peg still unstable/indeterminate? Really unstable but slow to emerge (sticky wages, velocity)? Reserves didn’t leak to M1, M2. (A: My point.) More general models? (A: don’t change stability, determinacy.) Large deficits, debt, Japan? (A: Low ...
... Really active NK, no one expected it to last? (A: Japan?) Peg still unstable/indeterminate? Really unstable but slow to emerge (sticky wages, velocity)? Reserves didn’t leak to M1, M2. (A: My point.) More general models? (A: don’t change stability, determinacy.) Large deficits, debt, Japan? (A: Low ...
Inflation - University of Hull
... Julius DeAnne (1998) Inflation and growth in a service economy, Bank of England Quarterly Bulletine, November, pp. 338-346. Kydland, Finn E. and Prescott, Edward C. 1977: Rules Rather than Discretion: The Inconsistency of Optimal Plans, JPE vol. 85, no. 3, pp. 473-491. Layard R and S. Nickeel (1990) ...
... Julius DeAnne (1998) Inflation and growth in a service economy, Bank of England Quarterly Bulletine, November, pp. 338-346. Kydland, Finn E. and Prescott, Edward C. 1977: Rules Rather than Discretion: The Inconsistency of Optimal Plans, JPE vol. 85, no. 3, pp. 473-491. Layard R and S. Nickeel (1990) ...
midterm exam 3
... lags that are unpredictable in length – sometimes the adjustment is slow. Suppose the response of the economy to the effects of monetary policy (like lowering interest rates) takes place with time lags that are unpredictable in length – sometimes the impact is after a long lag. How would these two f ...
... lags that are unpredictable in length – sometimes the adjustment is slow. Suppose the response of the economy to the effects of monetary policy (like lowering interest rates) takes place with time lags that are unpredictable in length – sometimes the impact is after a long lag. How would these two f ...
Word Document
... Classicals and neoclassicals believed Say’s Law implies the economy must always be at full employment. Under new classical theory the economy is always at equilibrium: all unemployment is voluntary. Under real business cycle theory supply side shocks cause what appear to be business cycles. Th ...
... Classicals and neoclassicals believed Say’s Law implies the economy must always be at full employment. Under new classical theory the economy is always at equilibrium: all unemployment is voluntary. Under real business cycle theory supply side shocks cause what appear to be business cycles. Th ...
AP Macroeconomics AP Exam Date: Wednesday, May 10, 2017
... 29. Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. 30. Given data, determine the size of the spending multiplier and assess its impact on AD. 31. Define fiscal policy—discretionary and nondi ...
... 29. Determine equilibrium using an AD/AS graph and show the effects on price level and real GDP when equilibrium changes in both the long run and the short run. 30. Given data, determine the size of the spending multiplier and assess its impact on AD. 31. Define fiscal policy—discretionary and nondi ...
AD Curve 2
... Having built the Income-Expenditure model, we next need to look at money. If we assume that people can either hold money as currency or buy bonds, then there will be a relationship between the amount of money in circulation and the interest paid on bonds. If the amount of money increases, this impli ...
... Having built the Income-Expenditure model, we next need to look at money. If we assume that people can either hold money as currency or buy bonds, then there will be a relationship between the amount of money in circulation and the interest paid on bonds. If the amount of money increases, this impli ...
Inflation And Its Effects
... COLA’s –Some union workers Some businesses, if prices of goods rise faster than prices of inputs and production costs ...
... COLA’s –Some union workers Some businesses, if prices of goods rise faster than prices of inputs and production costs ...
Chapter 16
... government spending is financed by taxes or a deficit In either case, the transfer of resources from the private sector to the government leads to having no net effect on the aggregate economy Based on rational expectations, individuals realize that deficits must be paid off in the future taxes ...
... government spending is financed by taxes or a deficit In either case, the transfer of resources from the private sector to the government leads to having no net effect on the aggregate economy Based on rational expectations, individuals realize that deficits must be paid off in the future taxes ...
Chapter12-Multiple Choice Questions on Inflation
... 5. A cost-push inflation spiral results if the Fed's response to stagflation is to keep A) decreasing aggregate demand. B) decreasing aggregate supply. C) increasing aggregate demand. D) increasing aggregate supply. 6. For a cost-push inflation to occur, oil price increases must be accompanied by A) ...
... 5. A cost-push inflation spiral results if the Fed's response to stagflation is to keep A) decreasing aggregate demand. B) decreasing aggregate supply. C) increasing aggregate demand. D) increasing aggregate supply. 6. For a cost-push inflation to occur, oil price increases must be accompanied by A) ...
Fisher Explained
... the real wage rate which is at equilibrium. E* is the employment level. r* shows the interest rate, M* is the quantity of money in the economy; I* is the amount of investment. The market on the upper right is the labor market. The y axis measures the real wages. The real wages is the nominal wage ad ...
... the real wage rate which is at equilibrium. E* is the employment level. r* shows the interest rate, M* is the quantity of money in the economy; I* is the amount of investment. The market on the upper right is the labor market. The y axis measures the real wages. The real wages is the nominal wage ad ...
Macroeconomics Quiz 4 Topics
... 4. How does the AD/AS model explain why there can be an inflation/unemployment tradeoff in the short-run, but not in the long-run? 5. When can government economic policy be effective, i.e., when can government intervention in the economy increase output and lower unemployment? 6. When will governmen ...
... 4. How does the AD/AS model explain why there can be an inflation/unemployment tradeoff in the short-run, but not in the long-run? 5. When can government economic policy be effective, i.e., when can government intervention in the economy increase output and lower unemployment? 6. When will governmen ...
Introduction
... policymakers may have unwittingly contributed to the downward pressure on prices; and finally, we outline the problems associated with deflation. Causes of deflation Overcapacity in the real economy: It has been suggested that a contributory factor in Japan’s deflationary trend was the large-scale o ...
... policymakers may have unwittingly contributed to the downward pressure on prices; and finally, we outline the problems associated with deflation. Causes of deflation Overcapacity in the real economy: It has been suggested that a contributory factor in Japan’s deflationary trend was the large-scale o ...
__ 1. Which of the following will cause the demand curve for
... b. only when they have a highly structured set of rules like the New York Stock Exchange c. because each market uses the same set of rules for buying and selling goods and services d. only when the government can coordinate the plans of many buyers and sellers e. when prices are set by the sellers a ...
... b. only when they have a highly structured set of rules like the New York Stock Exchange c. because each market uses the same set of rules for buying and selling goods and services d. only when the government can coordinate the plans of many buyers and sellers e. when prices are set by the sellers a ...
10. Oil Shocks of the 1970s and the Great Depression
... Shocks to the IS curve an exogenous fall in the demand for goods & services – a leftward shift of the IS curve. ...
... Shocks to the IS curve an exogenous fall in the demand for goods & services – a leftward shift of the IS curve. ...