ECONOMICS 100:15
... Between 1928 and 1933 the Canadian economy went from a situation of good economic conditions into the most severe recession in the nation’s history. Prices fell, real GDP declined sharply and unemployment reached 20%. Difficult conditions persisted throughout the 1930’s and full employment was resto ...
... Between 1928 and 1933 the Canadian economy went from a situation of good economic conditions into the most severe recession in the nation’s history. Prices fell, real GDP declined sharply and unemployment reached 20%. Difficult conditions persisted throughout the 1930’s and full employment was resto ...
ECN202 Practice Questions: 1960s
... Obama ‘stole’ from Kennedy the idea of using the new media - for Kennedy it was TV and Obama used the Internet 2. WWII followed close on the heals of a worldwide depression in the 1930s and another WW in the 1910s, so once WWII was ended there was a very real interest in moving the world forward tow ...
... Obama ‘stole’ from Kennedy the idea of using the new media - for Kennedy it was TV and Obama used the Internet 2. WWII followed close on the heals of a worldwide depression in the 1930s and another WW in the 1910s, so once WWII was ended there was a very real interest in moving the world forward tow ...
Panel on: “Behavioral Economics and Economic Policy in the Past... Federal Reserve Bank of Boston Conference: “Implications of Behavioral...
... phenomenon which, according to surveys and other empirical evidence, appears to be both widespread and significant in decisionmaking. In their model, when inflation is sufficiently low, most agents don’t focus on the difference between real and nominal variables, so inflation is relatively unimport ...
... phenomenon which, according to surveys and other empirical evidence, appears to be both widespread and significant in decisionmaking. In their model, when inflation is sufficiently low, most agents don’t focus on the difference between real and nominal variables, so inflation is relatively unimport ...
Unemployed
... – CPI report the price of a ‘market basket’ that are purchased by a typical urban consumer – Set CPI equal to 100 for the base year Price of the Most Recent Market Basket in the Particular Year ...
... – CPI report the price of a ‘market basket’ that are purchased by a typical urban consumer – Set CPI equal to 100 for the base year Price of the Most Recent Market Basket in the Particular Year ...
Answers to Practice Problems 2005
... curve left/up. Since the natural rate of unemployment has risen, the natural rate of output will fall as well. What about the effect on AD? We are not really certain about this. Higher costs might mean lower profits for investors, so investment might drop as a result. In this case, the AD curve woul ...
... curve left/up. Since the natural rate of unemployment has risen, the natural rate of output will fall as well. What about the effect on AD? We are not really certain about this. Higher costs might mean lower profits for investors, so investment might drop as a result. In this case, the AD curve woul ...
Mankiw Precis
... Inflation expectations. Changes in expectations of inflation are the most important factor shifting the Phillips curve. When expectations of inflation rise, the Phillips curve shifts up: the same unemployment rate is associated with a higher inflation rate. When expectations of inflation fall, the P ...
... Inflation expectations. Changes in expectations of inflation are the most important factor shifting the Phillips curve. When expectations of inflation rise, the Phillips curve shifts up: the same unemployment rate is associated with a higher inflation rate. When expectations of inflation fall, the P ...
Sample questions
... 8. What causes the IS curve to shift? What causes the LM curve to shift? What results in movement along each curve? Answer: Any exogenous change in the goods market will shift the IS, changes in income and interest rate will cause movements along it. Any exogenous change in the money market plus ch ...
... 8. What causes the IS curve to shift? What causes the LM curve to shift? What results in movement along each curve? Answer: Any exogenous change in the goods market will shift the IS, changes in income and interest rate will cause movements along it. Any exogenous change in the money market plus ch ...
Economics 330 (Kelly)
... 13. Inflation does not result from government budget deficits. UNCERTAIN: Inflation cannot occur without monetization. Even if monetization does occur, inflation will still not occur if perfect Ricardian equivalence holds. Other Questions: 1. Suppose that Alan Greenspan’s successor is an inflation ‘ ...
... 13. Inflation does not result from government budget deficits. UNCERTAIN: Inflation cannot occur without monetization. Even if monetization does occur, inflation will still not occur if perfect Ricardian equivalence holds. Other Questions: 1. Suppose that Alan Greenspan’s successor is an inflation ‘ ...
MACROECONOMICS STUDY SHEET
... 2. Fallacy of Composition - the erroneous notion that what holds true for the individual must also hold true for the group as a whole 3. Violation of ceteris paribus - ("all other things being equal") the error in comparing items when the situations are not comparable ...
... 2. Fallacy of Composition - the erroneous notion that what holds true for the individual must also hold true for the group as a whole 3. Violation of ceteris paribus - ("all other things being equal") the error in comparing items when the situations are not comparable ...
economics 100 / resources / powerpoints
... [2] cost push inflation – firms’ costs rise; wage increases, gov’t taxes, exchange rates needed for purchasing materials abroad. ...
... [2] cost push inflation – firms’ costs rise; wage increases, gov’t taxes, exchange rates needed for purchasing materials abroad. ...
Business Cycle - The Bronx High School of Science
... They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for large streams of government expenditures. In effect, inflation is a form of taxation in which the government gains at the expense of those who hold money while its value is declining ...
... They occur when the monetary and fiscal authorities of a nation regularly issue large quantities of money to pay for large streams of government expenditures. In effect, inflation is a form of taxation in which the government gains at the expense of those who hold money while its value is declining ...
1) Gross domestic product is calculated by summing up A) the total
... shifts the aggregate demand curve to the right from AD2 to AD1. As a result, prices rise and output increases. Unemployment also falls as the economy rises above potential GDP (point D). The growing economy causes workers and firms to adjust their expectations about wages and prices upward. As wages ...
... shifts the aggregate demand curve to the right from AD2 to AD1. As a result, prices rise and output increases. Unemployment also falls as the economy rises above potential GDP (point D). The growing economy causes workers and firms to adjust their expectations about wages and prices upward. As wages ...
04/2012 Rohit Azad and Anupam Das Abstract
... There has been a great deal of empirical work, both within the mainstream and heterodox frameworks, to study the relationship between unemployment and inflation especially in the era of globalization. This has been particularly so because of an almost tame response of inflation in the advanced natio ...
... There has been a great deal of empirical work, both within the mainstream and heterodox frameworks, to study the relationship between unemployment and inflation especially in the era of globalization. This has been particularly so because of an almost tame response of inflation in the advanced natio ...
Measuring Inflation and Unemployment
... • Using 2006 as a base year, compute the GDP deflator for the country. ...
... • Using 2006 as a base year, compute the GDP deflator for the country. ...
Economics for Today 2nd edition Irvin B. Tucker
... 11. If the nominal rate of interest is less than the inflation rate, a. lenders win. b. savers win. c. the real interest rate is negative. d. the economy is at full employment. C. The real rate of interest is negative because the lender is receiving less money back, in real terms, than was lent out ...
... 11. If the nominal rate of interest is less than the inflation rate, a. lenders win. b. savers win. c. the real interest rate is negative. d. the economy is at full employment. C. The real rate of interest is negative because the lender is receiving less money back, in real terms, than was lent out ...
Document
... exams. There will be no early exams or e-exams. If you miss an exam, you have to make sure that your excuse is documented and approved by the University. If you have a valid reason with required documentation, such as a doctor’s report approved by the University, you will be allowed to take the make ...
... exams. There will be no early exams or e-exams. If you miss an exam, you have to make sure that your excuse is documented and approved by the University. If you have a valid reason with required documentation, such as a doctor’s report approved by the University, you will be allowed to take the make ...
Welch & Welch - Economics: Theory and Practice
... markets automatically stabilize themselves and that government intervention in the macroeconomy is not advisable. Brought about by what some argued to be holes in Keynesian economics principles, which could not explain or remedy some problems of the 1970s. • Stagflation – Occurs when an economy ex ...
... markets automatically stabilize themselves and that government intervention in the macroeconomy is not advisable. Brought about by what some argued to be holes in Keynesian economics principles, which could not explain or remedy some problems of the 1970s. • Stagflation – Occurs when an economy ex ...
Long run Aggregate Supply
... before we can understand how inflation and unemployment are determined by the economy. We will portray the notion of the LAS curve differently from the way Gottheil does in his text. In Gottheil's text the aggregate supply curve becomes vertical at the level of real GDP that defines full employment. ...
... before we can understand how inflation and unemployment are determined by the economy. We will portray the notion of the LAS curve differently from the way Gottheil does in his text. In Gottheil's text the aggregate supply curve becomes vertical at the level of real GDP that defines full employment. ...
Price Indexes and the Inflation Rate
... inflation occurs when producers raise prices in order to meet increased costs. Wage increases are usually the reason for the increased costs. Wage-price spiral - The process by which rising wages cause higher prices, and higher prices cause higher wages. ...
... inflation occurs when producers raise prices in order to meet increased costs. Wage increases are usually the reason for the increased costs. Wage-price spiral - The process by which rising wages cause higher prices, and higher prices cause higher wages. ...
Temporarily Unstable Government Debt and Inflation
... • Does the model really need to be based on increasing transfers and looming pressures from aging? Wouldn’t the results be motivated by any increase in the deficit, regardless of the source? • How does the paper relate/compare with Drazen and Helpman (REStud, 1990), who make sense of the difficultie ...
... • Does the model really need to be based on increasing transfers and looming pressures from aging? Wouldn’t the results be motivated by any increase in the deficit, regardless of the source? • How does the paper relate/compare with Drazen and Helpman (REStud, 1990), who make sense of the difficultie ...
Phillips curve
In economics, the Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result in an economy. Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of inflation.While there is a short run tradeoff between unemployment and inflation, it has not been observed in the long run. In 1968, Milton Friedman asserted that the Phillips Curve was only applicable in the short-run and that in the long-run, inflationary policies will not decrease unemployment. Friedman then correctly predicted that, in the upcoming years after 1968, both inflation and unemployment would increase. The long-run Phillips Curve is now seen as a vertical line at the natural rate of unemployment, where the rate of inflation has no effect on unemployment. Accordingly, the Phillips curve is now seen as too simplistic, with the unemployment rate supplanted by more accurate predictors of inflation based on velocity of money supply measures such as the MZM (""money zero maturity"") velocity, which is affected by unemployment in the short but not the long term.