Econ 102: Problem Set 1
... aggregate demand curve? Under what circumstances would it shift horizontally by exactly $100 billion? What aspects of economic behavior would cause it to shift by more than $100 billion? What aspects would cause it to shift by less? This is a change in government purchases, G. Since G is one compone ...
... aggregate demand curve? Under what circumstances would it shift horizontally by exactly $100 billion? What aspects of economic behavior would cause it to shift by more than $100 billion? What aspects would cause it to shift by less? This is a change in government purchases, G. Since G is one compone ...
The Natural Rate of Unemployment
... Minimum wages - a government-mandated floor on the price of labor. In the U.S., the national minimum wage in 2005 was $5.15 an hour. Unions - by bargaining for all a firm’s workers collectively (collective bargaining), unions can often win higher wages from employers than the market would have other ...
... Minimum wages - a government-mandated floor on the price of labor. In the U.S., the national minimum wage in 2005 was $5.15 an hour. Unions - by bargaining for all a firm’s workers collectively (collective bargaining), unions can often win higher wages from employers than the market would have other ...
CENTRE for ECONOMIC PERFORMANCE OCCASIONAL PAPER
... Monetarists” essays that I wrote as an undergraduate, when — in my first week at the Harvard Economics Department, Professor Greg Mankiw — doyen of the young New Keynesians — eulogised Milton Friedman to the new graduate class. (He had already made clear that there was no doubting his credentials — ...
... Monetarists” essays that I wrote as an undergraduate, when — in my first week at the Harvard Economics Department, Professor Greg Mankiw — doyen of the young New Keynesians — eulogised Milton Friedman to the new graduate class. (He had already made clear that there was no doubting his credentials — ...
Macro3 Exercise #4 Answers
... have been tricked they cease offering the additional labor. Consider the new equilibrium point. Is it below, at or above the full employment level of output? The new equilibrium point is below the full employment level of output. Is this consistent with the indicated unemployment rate (Refer to the ...
... have been tricked they cease offering the additional labor. Consider the new equilibrium point. Is it below, at or above the full employment level of output? The new equilibrium point is below the full employment level of output. Is this consistent with the indicated unemployment rate (Refer to the ...
Developments in Malta`s structural unemployment
... end-of-sample bias and difficulties in adequately capturing structural breaks. The second approach links statistical approaches to economic information, based on long-standing economic relationships like the Phillips Curve and Okun’s Law. The former links price pressures to slack in the economy or i ...
... end-of-sample bias and difficulties in adequately capturing structural breaks. The second approach links statistical approaches to economic information, based on long-standing economic relationships like the Phillips Curve and Okun’s Law. The former links price pressures to slack in the economy or i ...
esp01-molana 221832 en
... There are already a number of studies that analyse the macroeconomic effects of labour market imperfections. The interested reader may consult, for instance, Danthine and Donaldson (1990), Dixon (1990), Moutos (1991), Hoon and Phelps (1992), Fender and Yip (1993), Phelps (1994) and Dixon and Rankin ...
... There are already a number of studies that analyse the macroeconomic effects of labour market imperfections. The interested reader may consult, for instance, Danthine and Donaldson (1990), Dixon (1990), Moutos (1991), Hoon and Phelps (1992), Fender and Yip (1993), Phelps (1994) and Dixon and Rankin ...
Chapter 1
... • The “invisible hand”: the idea that if there are free markets and individuals conduct their economic affairs in their own best interests, the overall economy will work well • Wages and prices adjust rapidly to get to equilibrium – Equilibrium: a situation in which the quantities demanded and suppl ...
... • The “invisible hand”: the idea that if there are free markets and individuals conduct their economic affairs in their own best interests, the overall economy will work well • Wages and prices adjust rapidly to get to equilibrium – Equilibrium: a situation in which the quantities demanded and suppl ...
year 1 macroeconomic objectives - inflation
... 10. A(n) ____________ of the exchange rate could lead to demand pull inflation 11. People on this type of income are likely to suffer as a result of inflation 13. The rate of inflation in the UK is controlled by the ____________ Bank of England’s Monetary Policy Committee 14. A wage-price spiral is ...
... 10. A(n) ____________ of the exchange rate could lead to demand pull inflation 11. People on this type of income are likely to suffer as a result of inflation 13. The rate of inflation in the UK is controlled by the ____________ Bank of England’s Monetary Policy Committee 14. A wage-price spiral is ...
Anti-Inflationary Policies in a Democratic Free Market Society Barry Bosworth
... the wage side, despite the high level of unemployment, increases were running at a very constant 7 percent a year for money wages; if fringe benefits and other compensation increases were included, increases amounted to about 8 percent a year. Our rate of productivity growth has now declined from 3 ...
... the wage side, despite the high level of unemployment, increases were running at a very constant 7 percent a year for money wages; if fringe benefits and other compensation increases were included, increases amounted to about 8 percent a year. Our rate of productivity growth has now declined from 3 ...
PDF
... First, some essentially say that we’re just not a dynamic profession. A recent graduate text in microeconomic theory presents a detailed explanation and proof of the SMD theorem and then, a few pages later, tells students that A characteristic feature that distinguishes economics from other scientif ...
... First, some essentially say that we’re just not a dynamic profession. A recent graduate text in microeconomic theory presents a detailed explanation and proof of the SMD theorem and then, a few pages later, tells students that A characteristic feature that distinguishes economics from other scientif ...
What the Political System Can Do to Help the Fed
... Monetary policy cannot peg these real magnitudes at predetermined levels. But monetary policy can and does have important effects on real magnitudes. The one is in no way inconsistent with the other. Indeed, Milton Friedman’s monumental work with Anna Schwartz, their 1963 volume A Monetary History o ...
... Monetary policy cannot peg these real magnitudes at predetermined levels. But monetary policy can and does have important effects on real magnitudes. The one is in no way inconsistent with the other. Indeed, Milton Friedman’s monumental work with Anna Schwartz, their 1963 volume A Monetary History o ...
Chapter 15
... • “Each of the major schools of economic thought can be useful on occasion. The insights of Keynesian economics proved appropriate for Western societies attempting to get out of the depression in the 1930s. The tools of monetarism were powerfully effective in squeezing out the inflationary force of ...
... • “Each of the major schools of economic thought can be useful on occasion. The insights of Keynesian economics proved appropriate for Western societies attempting to get out of the depression in the 1930s. The tools of monetarism were powerfully effective in squeezing out the inflationary force of ...
New classical/real business cycle macroeconomics The anatomy of
... problem they are faced with.4 Optimizing behavior refers to what is observable after trading has started. Thus, optimizing behavior implies that the optimizing plan has been realized. The gist of the above quotations is that optimal plan and optimal behavior need to be logically separated ― there is ...
... problem they are faced with.4 Optimizing behavior refers to what is observable after trading has started. Thus, optimizing behavior implies that the optimizing plan has been realized. The gist of the above quotations is that optimal plan and optimal behavior need to be logically separated ― there is ...
Chapter 15
... 1. "Activist policies have been followed by the government only after World War II. The business cycles since that time have been much milder than those before the war. Therefore, activist policies have successfully stabilized the economy." How would an economist favoring nonactivism respond to this ...
... 1. "Activist policies have been followed by the government only after World War II. The business cycles since that time have been much milder than those before the war. Therefore, activist policies have successfully stabilized the economy." How would an economist favoring nonactivism respond to this ...
Edmund Phelps
Edmund Strother Phelps, Jr. (born July 26, 1933) is an American economist and the winner of the 2006 Nobel Memorial Prize in Economic Sciences. Early in his career he became renowned for his research at Yale's Cowles Foundation in the first half of the 1960s on the sources of economic growth. His demonstration of the Golden Rule savings rate, a concept first devised by John von Neumann and Maurice Allais, started a wave of research on how much a nation ought to spend on present consumption rather than save and invest for future generations. His most seminal work inserted a microfoundation—one featuring imperfect information, incomplete knowledge and expectations about wages and prices—to support a macroeconomic theory of employment determination and price-wage dynamics. This led to his development of the natural rate of unemployment—its existence and the mechanism governing its size.Phelps has been McVickar Professor of Political Economy at Columbia University since 1982. He is also the director of Columbia's Center on Capitalism and Society.