Using Fiscal Policy to Fight Recession
... fail to increase along with aggregate supply, or aggregate demand may even shift left, for a number of possible reasons: households become hesitant about consuming; rms decide against investing as much; or perhaps the demand from other countries for exports diminishes. For example, investment by pr ...
... fail to increase along with aggregate supply, or aggregate demand may even shift left, for a number of possible reasons: households become hesitant about consuming; rms decide against investing as much; or perhaps the demand from other countries for exports diminishes. For example, investment by pr ...
NBER WORKING PAPER SERIES A TWO-YEAR REVIEW Michael Bruno Working Paper No. 2398
... appropriate initial synchronization of the most important nominal variables. In spite of the continued success of the stabilization program over the last two years, many problems remain. Excessive wage demands and a private consumption boom, in part the result of relative stability, have so far prev ...
... appropriate initial synchronization of the most important nominal variables. In spite of the continued success of the stabilization program over the last two years, many problems remain. Excessive wage demands and a private consumption boom, in part the result of relative stability, have so far prev ...
EC102 Economics B - Samira Barzin
... Nominal wages are very sPcky, much more so than other prices. Hence if nominal wages remain constant, but prices change, then changes to the real wage stem from inflaPon. ...
... Nominal wages are very sPcky, much more so than other prices. Hence if nominal wages remain constant, but prices change, then changes to the real wage stem from inflaPon. ...
The recession of 1937—A cautionary tale
... crisis without parallel since the Great Depression. As thoughts turn to the appropriate path of future policy during the recovery, a number of economists have proffered the recession that began in 1937 as a cautionary tale. That sharp but short-lived recession took place while the U.S. economy was r ...
... crisis without parallel since the Great Depression. As thoughts turn to the appropriate path of future policy during the recovery, a number of economists have proffered the recession that began in 1937 as a cautionary tale. That sharp but short-lived recession took place while the U.S. economy was r ...
Chapter 4 Slides
... Focuses on the determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. aggregate behavior The behavior of all households and firms together. sticky prices Prices that do not alwa ...
... Focuses on the determinants of total national income, deals with aggregates such as aggregate consumption and investment, and looks at the overall level of prices instead of individual prices. aggregate behavior The behavior of all households and firms together. sticky prices Prices that do not alwa ...
Answers to Study Guide Questions
... Answers to Self-Test Questions 1. GDP gap is $45 billion (cyclical unemployment of 3% x 2.5 x $600 billion) Potential GDP is $645 billion (actual GDP of $600 + GDP gap of $45) 2 a) If the price increases by 10 percent to 88, then real GDP will increase from $1000 to $1300 which is a growth rate of 3 ...
... Answers to Self-Test Questions 1. GDP gap is $45 billion (cyclical unemployment of 3% x 2.5 x $600 billion) Potential GDP is $645 billion (actual GDP of $600 + GDP gap of $45) 2 a) If the price increases by 10 percent to 88, then real GDP will increase from $1000 to $1300 which is a growth rate of 3 ...
The U.S. Economy in the 1990s: A Neoliberal Success Story?
... seeking to free market forces from public regulation (Pollin, 2000). Public spending was cut so severely that, with an assist from an expanding economy, budget deficits shrank and even disappeared at the end of the decade, with the Administration promising that a complete retirement of the public de ...
... seeking to free market forces from public regulation (Pollin, 2000). Public spending was cut so severely that, with an assist from an expanding economy, budget deficits shrank and even disappeared at the end of the decade, with the Administration promising that a complete retirement of the public de ...
National Income Accounting: Gross Domestic Product (GDP)
... • Nonmarket activities: GDP measures exclude most goods and services produced but not sold in the market. • Production not included: – Unpaid production done at home or by volunteer workers. – Unreported production done “off the books” or in the underground economy. ...
... • Nonmarket activities: GDP measures exclude most goods and services produced but not sold in the market. • Production not included: – Unpaid production done at home or by volunteer workers. – Unreported production done “off the books” or in the underground economy. ...
Chapter 25
... long-run changes in macroeconomic variables. 2. Describe how changes in GDP can be decomposed into changes in factor supply, the utilization rate of factors, and productivity. 3. Explain why short-run changes in GDP are mostly caused by changes in factor utilization, whereas long-run changes in GDP ...
... long-run changes in macroeconomic variables. 2. Describe how changes in GDP can be decomposed into changes in factor supply, the utilization rate of factors, and productivity. 3. Explain why short-run changes in GDP are mostly caused by changes in factor utilization, whereas long-run changes in GDP ...
ch25
... long-run changes in macroeconomic variables. 2. Describe how changes in GDP can be decomposed into changes in factor supply, the utilization rate of factors, and productivity. 3. Explain why short-run changes in GDP are mostly caused by changes in factor utilization, whereas long-run changes in GDP ...
... long-run changes in macroeconomic variables. 2. Describe how changes in GDP can be decomposed into changes in factor supply, the utilization rate of factors, and productivity. 3. Explain why short-run changes in GDP are mostly caused by changes in factor utilization, whereas long-run changes in GDP ...
Economic Effects of War and Peace
... government spending levels and with falling oil prices, such a response could lead to further weakening of these economies. Moreover, the recent confrontation could likely increase geopolitical risks, affecting investment, tourism, and trade in an already fragile region. Since the factors behind slo ...
... government spending levels and with falling oil prices, such a response could lead to further weakening of these economies. Moreover, the recent confrontation could likely increase geopolitical risks, affecting investment, tourism, and trade in an already fragile region. Since the factors behind slo ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... who bought a broad portfolio of securities like the Standard and Poors' 500 in 1957, held it for twenty years and sold it in 1977. An investor who did that would have been fortunate enough to have his investment slightly more than double during that time. Unfortunately, the consumer price level also ...
... who bought a broad portfolio of securities like the Standard and Poors' 500 in 1957, held it for twenty years and sold it in 1977. An investor who did that would have been fortunate enough to have his investment slightly more than double during that time. Unfortunately, the consumer price level also ...
Slide 1
... Business, Banking and Finance Conference University of the West Indies, St. Augustine Campus. Presenter: Joseph Jason Cotton May 3rd, 2013 ...
... Business, Banking and Finance Conference University of the West Indies, St. Augustine Campus. Presenter: Joseph Jason Cotton May 3rd, 2013 ...
Chained-Dollar Indexes Issues, Tips on Their Use, and Upcoming Changes
... The chained-dollar share represents the reference period’s (1996) share of GDP, adjusted for all the growth in the quantity, or real, index during the period between the reference period and the current period. This chained-dollar value ignores the changes in relative prices over that period, althou ...
... The chained-dollar share represents the reference period’s (1996) share of GDP, adjusted for all the growth in the quantity, or real, index during the period between the reference period and the current period. This chained-dollar value ignores the changes in relative prices over that period, althou ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... through cutting taxes and issuing nominal debt. The rational of reducing taxation is to increase disposable income of economic agents who in turn are expected to boost their expenditures of domestic goods and services thereby inducing an increase in output and prices. Tax cuts increase output. Fisca ...
... through cutting taxes and issuing nominal debt. The rational of reducing taxation is to increase disposable income of economic agents who in turn are expected to boost their expenditures of domestic goods and services thereby inducing an increase in output and prices. Tax cuts increase output. Fisca ...
T How Did Leading Indicator Forecasts Perform During the 2001 Recession?
... March 2001, the official NBER cyclical peak. Real personal income reached a cyclical peak in November 2000 and declined by 1.5 percent over the next twelve months. This relatively small decline in personal income reflected the unusual fact that productivity growth remained strong through this recess ...
... March 2001, the official NBER cyclical peak. Real personal income reached a cyclical peak in November 2000 and declined by 1.5 percent over the next twelve months. This relatively small decline in personal income reflected the unusual fact that productivity growth remained strong through this recess ...
1 - Whitman People
... average, in a year. When workers are paid only once a month from, say twice a month, this is one less time a month that workers are out there buying things with their paychecks. Thus, money, on average, changes hands fewer times in a year. (b) Velocity would increase. This would cause money to chang ...
... average, in a year. When workers are paid only once a month from, say twice a month, this is one less time a month that workers are out there buying things with their paychecks. Thus, money, on average, changes hands fewer times in a year. (b) Velocity would increase. This would cause money to chang ...
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... designed to prevent excessive deficits from arising in the first place. Each country follows a medium-term budgetary objective, which is normally to achieve a balanced budget over the economic cycle. This “medium-term objective” (MTO) should leave sufficient room for automatic stabilisers to work in ...
... designed to prevent excessive deficits from arising in the first place. Each country follows a medium-term budgetary objective, which is normally to achieve a balanced budget over the economic cycle. This “medium-term objective” (MTO) should leave sufficient room for automatic stabilisers to work in ...
Government stability size and macroeconomic
... What is the economic mechanism underlying the destabilizing effects of taxes? Much of the observed effect results from the increase in the labor supply elasticity brought about by a higher tax rate, through its negative impact on steady state employment. lo The higher labor supply elasticity enhance ...
... What is the economic mechanism underlying the destabilizing effects of taxes? Much of the observed effect results from the increase in the labor supply elasticity brought about by a higher tax rate, through its negative impact on steady state employment. lo The higher labor supply elasticity enhance ...
Geography Handbook - Portland State University
... performance across regions of the world. Smith is remembered today mainly for his theory that market institutions would enable societies to develop a richer division of labor, and therefore higher living standards, than societies subject to extensive government controls. He is less remembered for hi ...
... performance across regions of the world. Smith is remembered today mainly for his theory that market institutions would enable societies to develop a richer division of labor, and therefore higher living standards, than societies subject to extensive government controls. He is less remembered for hi ...
Aggregate Demand and Aggregate Supply
... • “Sticky” Wages: Some economists believe that wages are sticky or inflexible. Wages may also become sticky because of certain social conventions or perceived notion of fairness. • Most individuals are willing to work, and current workers are willing to work more, at higher than at lower real wages. ...
... • “Sticky” Wages: Some economists believe that wages are sticky or inflexible. Wages may also become sticky because of certain social conventions or perceived notion of fairness. • Most individuals are willing to work, and current workers are willing to work more, at higher than at lower real wages. ...
Abenomics
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Abenomics (アベノミクス, Abenomikusu) refers to the economic policies advocated by Shinzō Abe since the December 2012 general election, which elected Abe to his second term as prime minister of Japan. Abenomics is based upon ""three arrows"" of fiscal stimulus, monetary easing and structural reforms. The Economist characterized the program as a ""mix of reflation, government spending and a growth strategy designed to jolt the economy out of suspended animation that has gripped it for more than two decades.""The term ""Abenomics"" is a portmanteau of Abe and economics, and follows previous political neologisms for economic policies linked to specific leaders, such as Reaganomics, Clintonomics and Rogernomics.