Aggregate Supply and Demand
... exists firms can obtain any amount of labor at the going wage rate Prices “sticky” in the short run: firms reluctant to change prices and wages when demand shifts Intellectual origins: Great Depression ...
... exists firms can obtain any amount of labor at the going wage rate Prices “sticky” in the short run: firms reluctant to change prices and wages when demand shifts Intellectual origins: Great Depression ...
B-Inflation
... • According to nonactivists, in modern economies, wages and prices are sufficiently flexible to allow the economy to equilibrate at reasonable speed at natural real GDP. ...
... • According to nonactivists, in modern economies, wages and prices are sufficiently flexible to allow the economy to equilibrate at reasonable speed at natural real GDP. ...
Title of Part A - Tufts University
... But let’s take a closer look at the people classified as “employed,” too. In the BLS statistics a person is counted as “employed” if they do any paid work at all during the reference week, even if only for an hour or two. Some people prefer part time work, of course, because of the time it leaves t ...
... But let’s take a closer look at the people classified as “employed,” too. In the BLS statistics a person is counted as “employed” if they do any paid work at all during the reference week, even if only for an hour or two. Some people prefer part time work, of course, because of the time it leaves t ...
Macroeconomic Fundamentals Aggregate demand product market
... Aggregate demand, referred to as Gross domestic product or GDP, is therefore given by: AD = GDP = C + I + G + X – M The economy is said to be in general equilibrium when the money, labor and product markets are all in equilibrium. Focus here is on the short run. ...
... Aggregate demand, referred to as Gross domestic product or GDP, is therefore given by: AD = GDP = C + I + G + X – M The economy is said to be in general equilibrium when the money, labor and product markets are all in equilibrium. Focus here is on the short run. ...
Chart 12 : Reports of Official Rates for Economic Statistics from
... We are interested in how people get official government information about the rate of unemployment, the rate of change in prices, and the rate of change in the Gross Domestic Product. Do you get most of this type of information from television, the radio, newspapers, magazines, the internet, your fa ...
... We are interested in how people get official government information about the rate of unemployment, the rate of change in prices, and the rate of change in the Gross Domestic Product. Do you get most of this type of information from television, the radio, newspapers, magazines, the internet, your fa ...
Toolkit for Mainstreaming Employment and Decent
... • According to GET 2012 for Women, there are serious gender gaps with regard to labour force participation rates, employment absorption, unemployment, sectoral and occupational distribution with women being concentrated in agriculture and services and low paying and status occupations, and vulnerabi ...
... • According to GET 2012 for Women, there are serious gender gaps with regard to labour force participation rates, employment absorption, unemployment, sectoral and occupational distribution with women being concentrated in agriculture and services and low paying and status occupations, and vulnerabi ...
Econ 102: Problem Set 1
... economy moves from point A to point B, with the price level and real GDP rising to P2 and Y2 respectively: i) Real GDP rises; ii) Nominal GDP also rises, since P and Y both rise; iii) Unemployment falls, as more workers are needed to produce the higher output. Over time, since output is now above it ...
... economy moves from point A to point B, with the price level and real GDP rising to P2 and Y2 respectively: i) Real GDP rises; ii) Nominal GDP also rises, since P and Y both rise; iii) Unemployment falls, as more workers are needed to produce the higher output. Over time, since output is now above it ...
Suppose that this year`s money supply is $500 Bil
... a. The nominal interest rate was 10 percent and the inflation rate was 6 percent. b. The nominal interest rate was 6 percent and the inflation rate was 2 percent. c. The nominal interest rate was 4 percent and the inflation rate was 2 percent. d. The nominal interest rate was 10 percent and the infl ...
... a. The nominal interest rate was 10 percent and the inflation rate was 6 percent. b. The nominal interest rate was 6 percent and the inflation rate was 2 percent. c. The nominal interest rate was 4 percent and the inflation rate was 2 percent. d. The nominal interest rate was 10 percent and the infl ...
November 2003 FBSM exam question paper
... (d) Fill in the gaps in the following statements (Maximum 3 words per gap) (i) Economies of scale tend to lead to industries; here there are a few large firms and competition is often by ...
... (d) Fill in the gaps in the following statements (Maximum 3 words per gap) (i) Economies of scale tend to lead to industries; here there are a few large firms and competition is often by ...
ECON 101
... 1. Recognize and list factors leading to a change in market demand and/or market supply. 2. Graphically depict the market in competitive equilibrium. 3. Graphically depict the impact of the changes described in the reading on the market. 4. Verbally summarize the impact of the changes described in t ...
... 1. Recognize and list factors leading to a change in market demand and/or market supply. 2. Graphically depict the market in competitive equilibrium. 3. Graphically depict the impact of the changes described in the reading on the market. 4. Verbally summarize the impact of the changes described in t ...
Principles of Macroeconomics – ECO 101
... construction and use of several macroeconomics statistics (unemployment, GDP, inflation, price indexes, monetary aggregates). The course will also devote some time to the theories that explain growth. Finally, it will close with an analysis of the workings of an open economy. We will study both the ...
... construction and use of several macroeconomics statistics (unemployment, GDP, inflation, price indexes, monetary aggregates). The course will also devote some time to the theories that explain growth. Finally, it will close with an analysis of the workings of an open economy. We will study both the ...
5 S-R closed economy
... bank may not be able to provide sufficient stimulus to get the economy out, no matter how much money it provides (liquidity trap). Something like this may have happened in the 1930s, and again in Japan in the 1990s—although in both cases monetary policy was inept, and not nearly aggressive enough. T ...
... bank may not be able to provide sufficient stimulus to get the economy out, no matter how much money it provides (liquidity trap). Something like this may have happened in the 1930s, and again in Japan in the 1990s—although in both cases monetary policy was inept, and not nearly aggressive enough. T ...
Chapter 3 The Business Cycle
... during periods of recession. In recessions of the 1970s and 1980s, most unemployment was of the cyclical type. Once the economy began to recover, these jobs returned rather quickly. But in the recession of 1990 – 1991, and especially in the recession of 2001 and the slowdown of 2008, much more of th ...
... during periods of recession. In recessions of the 1970s and 1980s, most unemployment was of the cyclical type. Once the economy began to recover, these jobs returned rather quickly. But in the recession of 1990 – 1991, and especially in the recession of 2001 and the slowdown of 2008, much more of th ...
Chapter 17
... According to the theory of economic fluctuations, which of the following explains the relationship between aggregate demand and employment during a recession? a) A fall in output causes potential GDP to increase, causing employment to decline. b) A fall in real GDP causes aggregate demand to fall. A ...
... According to the theory of economic fluctuations, which of the following explains the relationship between aggregate demand and employment during a recession? a) A fall in output causes potential GDP to increase, causing employment to decline. b) A fall in real GDP causes aggregate demand to fall. A ...
Chapter 1: A Tour of the World
... long periods? Has the United States entered a New Economy, in which growth will be much higher in the future? Can other countries emulate China and grow at the same rate? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard ...
... long periods? Has the United States entered a New Economy, in which growth will be much higher in the future? Can other countries emulate China and grow at the same rate? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard ...
ECON 102 MIDTERM 2 – LIST OF TOPICS
... supply of labor curve shows the opportunity cost of the last worker hired, while the demand for labor curve shows the benefit for businesses from the last worker hired (if this concept is not clear to you, draw the picture depicting the labor market and consider a fixed quantity of labor. What is th ...
... supply of labor curve shows the opportunity cost of the last worker hired, while the demand for labor curve shows the benefit for businesses from the last worker hired (if this concept is not clear to you, draw the picture depicting the labor market and consider a fixed quantity of labor. What is th ...
Economics 212 Principles of Macroeconomics Study Guide David L
... Definition 15 The natural rate of unemployment is the long run average rate of unemployment, when the economy is neither in a boom nor recession. Definition 16 Cyclical unemployment is the increase in unemployment due to recessions. The model predicts that unemployment falls in a boom and rises in a ...
... Definition 15 The natural rate of unemployment is the long run average rate of unemployment, when the economy is neither in a boom nor recession. Definition 16 Cyclical unemployment is the increase in unemployment due to recessions. The model predicts that unemployment falls in a boom and rises in a ...
Full employment
Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or deficient-demand unemployment. It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0%. The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year. This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of ""full"" employment. The NAIRU has also been described by Milton Friedman, among others, as the ""natural"" rate of unemployment. Having many names, it has also been called the structural unemployment rate.The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment. Other economists have provided estimates between 2% and 13%, depending on the country, time period, and their political biases. For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s. Recently, economists have emphasized the idea that full employment represents a ""range"" of possible unemployment rates. For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the ""full-employment unemployment rate"" of 4 to 6.4%. This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate.The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve. In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or ""potential"" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary.