19 Big Events: The Economics of Depression, Hyperinflation, and
... national debt have become a significant component of government expenditure. Most of the federal government’s revenues come from taxes. The government’s revenues haven’t changed very much as a percentage of GDP over the last 30 years; its expenditures have soared. Social security taxes contribute mo ...
... national debt have become a significant component of government expenditure. Most of the federal government’s revenues come from taxes. The government’s revenues haven’t changed very much as a percentage of GDP over the last 30 years; its expenditures have soared. Social security taxes contribute mo ...
Test #2
... curve which have larger effects on aggregate demand because of the horizontal LM curve – monetary policy in such situations is “procyclical”. Monetary targeting eliminates the impact of fluctuations in the money supply induced by the private sector and moderates the impact of fluctuations emanating ...
... curve which have larger effects on aggregate demand because of the horizontal LM curve – monetary policy in such situations is “procyclical”. Monetary targeting eliminates the impact of fluctuations in the money supply induced by the private sector and moderates the impact of fluctuations emanating ...
Y - The University of Chicago Booth School of Business
... Key Insight: If the economy experiences unexpected deflation, the opposite happens-borrowers are paying more in terms of lost real purchasing power when there is unexpected deflation. Borrowers, both consumers and firms, will essentially be poorer. (Even though, there is another side of the market - ...
... Key Insight: If the economy experiences unexpected deflation, the opposite happens-borrowers are paying more in terms of lost real purchasing power when there is unexpected deflation. Borrowers, both consumers and firms, will essentially be poorer. (Even though, there is another side of the market - ...
View/Open
... The attitudes of businessmen and consumers toward the future can have important effects upon price changes. If people expect prices to rise sharply in the future and wage rates to increase accordingly, they are likely to buy more on credit. In effect, this is an increase in demand and creates additi ...
... The attitudes of businessmen and consumers toward the future can have important effects upon price changes. If people expect prices to rise sharply in the future and wage rates to increase accordingly, they are likely to buy more on credit. In effect, this is an increase in demand and creates additi ...
An Introduction to Basic Macroeconomic Markets
... SRAS – in the short run, an unanticipated increase in the price level will increase the profitability of businesses ***This is because resource prices are fixed in the short run!! ...
... SRAS – in the short run, an unanticipated increase in the price level will increase the profitability of businesses ***This is because resource prices are fixed in the short run!! ...
國立嘉義大學95學年度
... 18. Which of the following shifts the investment demand curve leftward? A) A fall in the real interest rate. B) The economy enters the expansion phase of a business cycle. C) A decrease in the taxes paid by the business. ...
... 18. Which of the following shifts the investment demand curve leftward? A) A fall in the real interest rate. B) The economy enters the expansion phase of a business cycle. C) A decrease in the taxes paid by the business. ...
Exam questions first prelim ECON 102
... 4. What would not be included in the GDP of the US? a) the haircut I got this morning at the hairdressers on the commons b) the bag of wheat used by the bakery to make the bread I bought this morning c) the tomatoes which I ate at lunch today, picked by Mexican workers in California d) the wine of y ...
... 4. What would not be included in the GDP of the US? a) the haircut I got this morning at the hairdressers on the commons b) the bag of wheat used by the bakery to make the bread I bought this morning c) the tomatoes which I ate at lunch today, picked by Mexican workers in California d) the wine of y ...
Money Demand (Handa, Chapter 2)
... The Walrasian GE Model determines relative prices but not the absolute price level. QUESTION: Can we marry the two together? This amounts to integrating microeconomic price theory with macroeconomic monetary theory. Can we add some form of the Equation of Exchange to the Walrasian ...
... The Walrasian GE Model determines relative prices but not the absolute price level. QUESTION: Can we marry the two together? This amounts to integrating microeconomic price theory with macroeconomic monetary theory. Can we add some form of the Equation of Exchange to the Walrasian ...
Financial Factors in the Great Depression
... uncertain length, and cite evidence that banking crises in the 1930s are associated with changes in the money multiplier (for example Anderson and Butkiewitz, 1980; Boughton and Wicker, 1979; Schwartz, 1981; Trescott, 1984). As Wicker (1989) points out, however, the association between bank failures ...
... uncertain length, and cite evidence that banking crises in the 1930s are associated with changes in the money multiplier (for example Anderson and Butkiewitz, 1980; Boughton and Wicker, 1979; Schwartz, 1981; Trescott, 1984). As Wicker (1989) points out, however, the association between bank failures ...
CHAPTER 36: CURRENT ISSUES IN MACRO - jb
... policies Congress and the Fed will undertake and then take action to protect themselves from the effects of those policies. For example, during a recession, workers and banks may anticipate that the Fed will increase the money supply in order to increase aggregate demand. But because such an action ...
... policies Congress and the Fed will undertake and then take action to protect themselves from the effects of those policies. For example, during a recession, workers and banks may anticipate that the Fed will increase the money supply in order to increase aggregate demand. But because such an action ...
9 Money
... • There are two kinds of assets – money (M1) – interest-paying assets (stocks, bonds, etc.) • Money is necessary to make transactions (you cannot use interest-bearing assets for these) • Households consume c in a period (a month or a quarter, maybe). This is a real (as opposed to nominal) amount. • ...
... • There are two kinds of assets – money (M1) – interest-paying assets (stocks, bonds, etc.) • Money is necessary to make transactions (you cannot use interest-bearing assets for these) • Households consume c in a period (a month or a quarter, maybe). This is a real (as opposed to nominal) amount. • ...
QUIZ 7: Macro – Winter 2011 Name
... However, as seen in question 3 part 1, a short-term effect of an increase in money supply is an expansion (the AD shifts out because real money balances temporarily increase and real rates go down, fostering investment). These effects are however possible only because we are assuming that wages are ...
... However, as seen in question 3 part 1, a short-term effect of an increase in money supply is an expansion (the AD shifts out because real money balances temporarily increase and real rates go down, fostering investment). These effects are however possible only because we are assuming that wages are ...
Marco Casiraghi and Giuseppe Ferrero
... would further raise real rates. Fully rational agents anticipate that the ZLB may prevent the central bank from closing the inflation gap. The risk of a disanchoring is even higher if agents use past forecast errors and current values to update their inflation expectations. The probability that infl ...
... would further raise real rates. Fully rational agents anticipate that the ZLB may prevent the central bank from closing the inflation gap. The risk of a disanchoring is even higher if agents use past forecast errors and current values to update their inflation expectations. The probability that infl ...
Classical Economics and the Business Cycles
... • Firms are going to want to invest less because productivity is going to be low for many period now. So the IS curve shifts in due to lower value of capital in future. ...
... • Firms are going to want to invest less because productivity is going to be low for many period now. So the IS curve shifts in due to lower value of capital in future. ...
Vocabulary Exercises for
... with a high level of inflation and high aggregate demand. 2. The money that a woman pays to the government from any money that she earns is …………………………………….. tax. 3. The …………………………………….. principle says that poor people should pay less tax than people who have more money than them. 4. Many people feel ...
... with a high level of inflation and high aggregate demand. 2. The money that a woman pays to the government from any money that she earns is …………………………………….. tax. 3. The …………………………………….. principle says that poor people should pay less tax than people who have more money than them. 4. Many people feel ...
14.02 Principles of Macroeconomics Fall 2005 Quiz 2 Solutions
... At t=0 the stock market learns that the Central Bank is going to behave at t=1 as described in part 2). Assume that the stock market is able to perfectly forecast the future real interest rate and that in each period the real interest rate decreases by the same percentage points by which the real mo ...
... At t=0 the stock market learns that the Central Bank is going to behave at t=1 as described in part 2). Assume that the stock market is able to perfectly forecast the future real interest rate and that in each period the real interest rate decreases by the same percentage points by which the real mo ...
Inflation is a persistent increase in the general price level
... Demand-Pull Inflation Demand-pull inflation is inflation that occurs when total demand for goods and services exceeds the economy's capacityto produce those goods. Put another way, there is "too much money chasing too few goods. " Typically, demand-pull inflation occurs when unemployment is low or f ...
... Demand-Pull Inflation Demand-pull inflation is inflation that occurs when total demand for goods and services exceeds the economy's capacityto produce those goods. Put another way, there is "too much money chasing too few goods. " Typically, demand-pull inflation occurs when unemployment is low or f ...
Document
... adjust to interest rates for those interest-sensitive purchases. Price level falls (bundle of goods costs less) rest of money into savings, more money available for borrowing interest rate down. Think of money as stationary… demand drives up price of money. ...
... adjust to interest rates for those interest-sensitive purchases. Price level falls (bundle of goods costs less) rest of money into savings, more money available for borrowing interest rate down. Think of money as stationary… demand drives up price of money. ...
aggregate supply aggregate demand krugman 2nd ed
... Key Questions Why is the Aggregate Demand Curve downward sloping? What factors shift the Aggregate Demand Curve? What factors shift the Aggregate Supply Curve? Why is there a long run and short run supply curve? What stabilizing policies does the government have at its disposal, when are they used? ...
... Key Questions Why is the Aggregate Demand Curve downward sloping? What factors shift the Aggregate Demand Curve? What factors shift the Aggregate Supply Curve? Why is there a long run and short run supply curve? What stabilizing policies does the government have at its disposal, when are they used? ...
