Labor Productivity - ScholarWorks@UMass Amherst
... and mobility of employment, raising not only productivity but employment 1 . This article shows that empirical evidence does not confirm the assumption that the U.S. productivity dynamic is superior to Europe’s. Labor productivity in the European economies has continued to slow down since the mid-19 ...
... and mobility of employment, raising not only productivity but employment 1 . This article shows that empirical evidence does not confirm the assumption that the U.S. productivity dynamic is superior to Europe’s. Labor productivity in the European economies has continued to slow down since the mid-19 ...
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... A distinction between " potential" and "normal" output needs to be made within the stochastic production function-based framework. Modelling potential output as opposed to normal output requires the estimation of potential levels of factor inputs. "Normal " output, defmed as the production level wit ...
... A distinction between " potential" and "normal" output needs to be made within the stochastic production function-based framework. Modelling potential output as opposed to normal output requires the estimation of potential levels of factor inputs. "Normal " output, defmed as the production level wit ...
Chapter 9 Aggregate Demand and Aggregate Supply
... First, what happens to Real GDP if aggregate demand rises? As you can see, Real GDP rises. As you know from Chapter 3, a period in which Real GDP is rising is called an expansion. And during an expansion, unemployment falls. The increase in goods and services being produced and the reduction in unem ...
... First, what happens to Real GDP if aggregate demand rises? As you can see, Real GDP rises. As you know from Chapter 3, a period in which Real GDP is rising is called an expansion. And during an expansion, unemployment falls. The increase in goods and services being produced and the reduction in unem ...
Macroeconomic Policy, Economic Stability, and the Federal Debt
... improve, output will expand, and unemployment will fall below its natural rate. • Alternatively, when the actual rate of inflation is less than the expected rate, profits will be abnormally low, output will recede, and unemployment will rise above its natural rate. • When the inflation rate is stead ...
... improve, output will expand, and unemployment will fall below its natural rate. • Alternatively, when the actual rate of inflation is less than the expected rate, profits will be abnormally low, output will recede, and unemployment will rise above its natural rate. • When the inflation rate is stead ...
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... 9. In the expenditures-output model, the price level is held constant and the aggregate expenditures schedule (C + Ig+ Xn) shifts upward. In the aggregate demandaggregate supply model this change would be equivalent to a(n): A) decrease in aggregate demand in the horizontal range of the aggregate su ...
... 9. In the expenditures-output model, the price level is held constant and the aggregate expenditures schedule (C + Ig+ Xn) shifts upward. In the aggregate demandaggregate supply model this change would be equivalent to a(n): A) decrease in aggregate demand in the horizontal range of the aggregate su ...
Chapter 1 - IDEAS/RePEc
... component of GDP and include items that last longer than the current period such as automobiles and furniture. Nondurables are goods that are consumed or “used up” within the period such as food. Services are non-tangible items such as haircuts and massages. Investment consists of fixed investment, ...
... component of GDP and include items that last longer than the current period such as automobiles and furniture. Nondurables are goods that are consumed or “used up” within the period such as food. Services are non-tangible items such as haircuts and massages. Investment consists of fixed investment, ...
Economics of Money, Banking, and Fin. Markets, 10e, Global Edition
... pursuing expansionary policies once expectations are set. The problem is that this policy results not in higher output, but in higher actual and expected inflation. The solution is to adopt a rule to constrain discretion. Nominal anchors can provide the necessary constraint on discretionary behavior ...
... pursuing expansionary policies once expectations are set. The problem is that this policy results not in higher output, but in higher actual and expected inflation. The solution is to adopt a rule to constrain discretion. Nominal anchors can provide the necessary constraint on discretionary behavior ...
E U R N
... as in the case of monetary policy, the estimation of potential growth is crucial to assess correctly the fiscal stance, taking into account the effect of the business cycle on public finances. At the end of the 1990’s, when economic growth was strong in Europe, some analysts suggested that this upsw ...
... as in the case of monetary policy, the estimation of potential growth is crucial to assess correctly the fiscal stance, taking into account the effect of the business cycle on public finances. At the end of the 1990’s, when economic growth was strong in Europe, some analysts suggested that this upsw ...
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... rigidities. They calibrate a model in which firm-specific productivity shocks affect the wages firms offer their employees, subject to constraints imposed by nominal-wage rigidities. Their results suggest that reducing inflation to zero would significantly increase the steady-state unemployment rate ...
... rigidities. They calibrate a model in which firm-specific productivity shocks affect the wages firms offer their employees, subject to constraints imposed by nominal-wage rigidities. Their results suggest that reducing inflation to zero would significantly increase the steady-state unemployment rate ...
Inflation - American University
... popular mind is Milton Friedman, who is credited with leading a revival of monetarist ideas in the 1950s–1970s. ...
... popular mind is Milton Friedman, who is credited with leading a revival of monetarist ideas in the 1950s–1970s. ...
2014-15 Budget medium-term economic projections
... Nearly twenty-one years ago, the release of the 1993-94 Commonwealth budget saw the first extension of economic estimates beyond the budget year. These additional estimates, based on medium term economic assumptions, underpinned more informative estimates of taxation revenue and the Government’s bud ...
... Nearly twenty-one years ago, the release of the 1993-94 Commonwealth budget saw the first extension of economic estimates beyond the budget year. These additional estimates, based on medium term economic assumptions, underpinned more informative estimates of taxation revenue and the Government’s bud ...
Monetary policy and supply shocks - Hans-Böckler
... either case, potential output once again reaches a higher level. Whether this potential output level is higher or lower than the one that would have been realized in the absence of an oil price shock depends, among other things, on the technological progress embedded in new production methods. In th ...
... either case, potential output once again reaches a higher level. Whether this potential output level is higher or lower than the one that would have been realized in the absence of an oil price shock depends, among other things, on the technological progress embedded in new production methods. In th ...
5 Progression in public provider-based tertiary
... 2.2 Factors influencing participation in education In terms of the economic cycle, there are potentially both direct and indirect effects on participation at the tertiary level. The indirect effect is where participation at senior secondary school increases as a result of an economic slowdown. As a ...
... 2.2 Factors influencing participation in education In terms of the economic cycle, there are potentially both direct and indirect effects on participation at the tertiary level. The indirect effect is where participation at senior secondary school increases as a result of an economic slowdown. As a ...
Aggregate Demand and Aggregate Supply
... attempts to increase aggregate output result in an increase in both output and the price level. – When the demand for goods and services rises, firms increase their demand for inputs. • When all firms demand more inputs and the market supply of inputs is upward sloping, firms’ costs rise. Firms resp ...
... attempts to increase aggregate output result in an increase in both output and the price level. – When the demand for goods and services rises, firms increase their demand for inputs. • When all firms demand more inputs and the market supply of inputs is upward sloping, firms’ costs rise. Firms resp ...
1. Driving factors of male employment in African countries
... group 15–64 over the period 1991–2009), using cross-sectional data. The results suggest that for all-Africa estimation, quadratic (squared) levels of real per capita GDP, greater access to credit by the private sector, more education, and higher male share of the population increase male employment ...
... group 15–64 over the period 1991–2009), using cross-sectional data. The results suggest that for all-Africa estimation, quadratic (squared) levels of real per capita GDP, greater access to credit by the private sector, more education, and higher male share of the population increase male employment ...
Foundations of Economics, 3e (Bade/Parkin)
... 17) How does an increase in the price level affect the aggregate quantity of goods and services demanded? Answer: An increase in the price level decreases the aggregate quantity of goods and services demanded for three reasons. First, it decreases the buying power of money. As a result, people decr ...
... 17) How does an increase in the price level affect the aggregate quantity of goods and services demanded? Answer: An increase in the price level decreases the aggregate quantity of goods and services demanded for three reasons. First, it decreases the buying power of money. As a result, people decr ...
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.