An Assessment of Price and Wage Setting in South Africa and
... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
... During the 2001/02 currency crisis interest rates were increased, but not to the same extent as during 1998, as the primary focus of the monetary authorities was on containing inflation, rather than using interest rates to target the exchange rate. In this context the inflation targeting regime has ...
Government Price Controls and Inflation
... lives without significant impact on either the company or the consumer. The consumer pays once, and only once, for any given plant. If depreciation is initially inadequate, the consumer's rates will be lower in the initial period and higher in the later period. If depreciation is initially excessive ...
... lives without significant impact on either the company or the consumer. The consumer pays once, and only once, for any given plant. If depreciation is initially inadequate, the consumer's rates will be lower in the initial period and higher in the later period. If depreciation is initially excessive ...
Economic trends
... important exception is the price of crude oil which, following a dip in the spring, has picked up again in the course of the summer. This, coupled with new oil and gas discoveries, has contributed to the current spirit of optimism in the Norwegian petroleum sector and has also boosted the upturn in ...
... important exception is the price of crude oil which, following a dip in the spring, has picked up again in the course of the summer. This, coupled with new oil and gas discoveries, has contributed to the current spirit of optimism in the Norwegian petroleum sector and has also boosted the upturn in ...
sticky price models and durable goods
... expansion. The tendency towards negative comovement is very robust and can be so strong as to dominate the aggregate behavior of the model. In an instructive limiting case, money has no effects on aggregate output even though most prices in the model are sticky. ...
... expansion. The tendency towards negative comovement is very robust and can be so strong as to dominate the aggregate behavior of the model. In an instructive limiting case, money has no effects on aggregate output even though most prices in the model are sticky. ...
Chapter 4: Skating to Where the Puck is Going: Aggregate Supply
... – in output markets, prices fall due to surpluses, but falling incomes from unemployment in input markets decrease consumption demand (C) ...
... – in output markets, prices fall due to surpluses, but falling incomes from unemployment in input markets decrease consumption demand (C) ...
Bank of England Inflation Report February 2015
... Bank staff estimate that the recent falls in import prices are likely to be more than offsetting the upward pressure from past rises such that, currently, non-energy import prices are weighing slightly on CPI inflation. There is more uncertainty than three months ago about the extent to which the pa ...
... Bank staff estimate that the recent falls in import prices are likely to be more than offsetting the upward pressure from past rises such that, currently, non-energy import prices are weighing slightly on CPI inflation. There is more uncertainty than three months ago about the extent to which the pa ...
Ch24 Aggregate Demand Supply Model Multiple Choice Questions
... 36. Aggregate demand curves slope downwards for each of the following reasons EXCEPT A. The wealth effect: As the price level falls, the buying power of people’s savings increases and induces them to spend more. B. The substitution effect: As the price level falls, people buy more of the cheaper goo ...
... 36. Aggregate demand curves slope downwards for each of the following reasons EXCEPT A. The wealth effect: As the price level falls, the buying power of people’s savings increases and induces them to spend more. B. The substitution effect: As the price level falls, people buy more of the cheaper goo ...
File
... What matters to people is the real value of money or income—its purchasing power—not the face value of money or income. There are three basic reasons for such purchasing power changes leading to changes in aggregate demand: The Wealth Effect: The wealth effect is an increase in spending that occur ...
... What matters to people is the real value of money or income—its purchasing power—not the face value of money or income. There are three basic reasons for such purchasing power changes leading to changes in aggregate demand: The Wealth Effect: The wealth effect is an increase in spending that occur ...
Document
... Output, Costs, and the Price Level Assume that changes in output have no effect on the nominal wage rate in the short run. In the short run • a rise in real GDP will also cause a rise in the price level. • a fall in real GDP will also cause a decrease in the price level. ...
... Output, Costs, and the Price Level Assume that changes in output have no effect on the nominal wage rate in the short run. In the short run • a rise in real GDP will also cause a rise in the price level. • a fall in real GDP will also cause a decrease in the price level. ...
Aggregate Supply and Aggregate Demand
... Short-Run and Long-Run Macroeconomic Equilibrium Long-run macroeconomic equilibrium occurs when real GDP equals potential GDP and there is full employment. This implies the economy is on its long-run aggregate supply curve. Short-run equilibrium can occur at a real GDP other than potential GDP ...
... Short-Run and Long-Run Macroeconomic Equilibrium Long-run macroeconomic equilibrium occurs when real GDP equals potential GDP and there is full employment. This implies the economy is on its long-run aggregate supply curve. Short-run equilibrium can occur at a real GDP other than potential GDP ...
Chapter 4: Inflation in the Twentieth Century
... today’s elderly people were hurt badly by the inflation of the 1970s. Their Social Security was not the reason because Social Security has a COLA. But the money they had saved for their retirement lost much of its value as prices rose so greatly. Homeowners are big “winners” from inflation. First, t ...
... today’s elderly people were hurt badly by the inflation of the 1970s. Their Social Security was not the reason because Social Security has a COLA. But the money they had saved for their retirement lost much of its value as prices rose so greatly. Homeowners are big “winners” from inflation. First, t ...
Mankiw 5/e Chapter 13: Aggregate Supply
... unemployment, inflation will ________ ____________________. – Past inflation influences expectations of current inflation, which in turn influences the wages & prices that people set. ...
... unemployment, inflation will ________ ____________________. – Past inflation influences expectations of current inflation, which in turn influences the wages & prices that people set. ...
Advanced International Trade: Theory and Evidence, Second
... capital Ki. These production functions are assumed to be increasing, concave, and homogeneous of degree one in the inputs (Li, Ki).3 The last assumption means that there are constant returns to scale in the production of each good. This will be a maintained assumption for the next several chapters, ...
... capital Ki. These production functions are assumed to be increasing, concave, and homogeneous of degree one in the inputs (Li, Ki).3 The last assumption means that there are constant returns to scale in the production of each good. This will be a maintained assumption for the next several chapters, ...
NBER WORKING PAPER SERIES DO FLEXIBLE DURABLE GOODS PRICES Robert Barsky
... for purchases of durables is nearly infinite. The result is that a small, temporary increase in the relative price of durables causes a large shift of expenditure away from that sector.2 Monetary expansions increase spending at constant prices, and typically result in increased output, increased fac ...
... for purchases of durables is nearly infinite. The result is that a small, temporary increase in the relative price of durables causes a large shift of expenditure away from that sector.2 Monetary expansions increase spending at constant prices, and typically result in increased output, increased fac ...
Chapter 19 The theory of effective demand
... speaking, the production is elastic w.r.t. demand. An upward shift in demand tends to be met by a rise in production rather than price. The price changes which do occur are mostly a response to general changes in costs of production. Hence the name “cost-determined” prices. For primary foodstuff and ...
... speaking, the production is elastic w.r.t. demand. An upward shift in demand tends to be met by a rise in production rather than price. The price changes which do occur are mostly a response to general changes in costs of production. Hence the name “cost-determined” prices. For primary foodstuff and ...
Aggregate Demand and Aggregate Supply
... primarily by demand factors in the short run. • The aggregate demand curve depicts the relationship between the price level and total demand for real output in the economy. The aggregate demand curve is downward sloping because of the wealth effect, the interest rate effect, and the international tr ...
... primarily by demand factors in the short run. • The aggregate demand curve depicts the relationship between the price level and total demand for real output in the economy. The aggregate demand curve is downward sloping because of the wealth effect, the interest rate effect, and the international tr ...
19e ch 35 insert C
... 7. Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succ ...
... 7. Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succ ...
RQ(2)
... a. or if the government raises taxes, aggregate demand shifts right. b. or if the government raises taxes, aggregate demand shifts left. c. aggregate demand shifts right. If the government raises taxes, aggregate demand shifts left. d. aggregate demand shifts left. If the government raises taxes, ag ...
... a. or if the government raises taxes, aggregate demand shifts right. b. or if the government raises taxes, aggregate demand shifts left. c. aggregate demand shifts right. If the government raises taxes, aggregate demand shifts left. d. aggregate demand shifts left. If the government raises taxes, ag ...
19e ch 35 insert C
... 7. Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succ ...
... 7. Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succ ...
oil price volatility and economic activity
... This paper surveys recent research in the area of oil price movements and their effect on economic and financial performance in IEA countries. To the extent they correlate negatively with economic indicators, future oil (and natural gas) price streams represent a highly risky obligation for energy c ...
... This paper surveys recent research in the area of oil price movements and their effect on economic and financial performance in IEA countries. To the extent they correlate negatively with economic indicators, future oil (and natural gas) price streams represent a highly risky obligation for energy c ...
Inflation, deflation and purchasing power
... people expect that prices are being rise: this fully anticipated monetary policy cannot have any real effects even in the short-run; the CB can affect the real output and employment only if it can find a way to create a “price surprise”. if a policymaker announces a disinflation policy in adva ...
... people expect that prices are being rise: this fully anticipated monetary policy cannot have any real effects even in the short-run; the CB can affect the real output and employment only if it can find a way to create a “price surprise”. if a policymaker announces a disinflation policy in adva ...
The Elimination of Fuel Subsidies to Increase the Education
... Government so far seems hesitant to reduce fuel subsidies, moreover to eliminate them. This paper is intended to determine the impact of reducing the fuel subsidies on the economy. Several study results simulated with KUT Indorani Model shows that the reduction of fuel subsidies indeed has a negativ ...
... Government so far seems hesitant to reduce fuel subsidies, moreover to eliminate them. This paper is intended to determine the impact of reducing the fuel subsidies on the economy. Several study results simulated with KUT Indorani Model shows that the reduction of fuel subsidies indeed has a negativ ...
Document
... shows the level of real GDP purchased in the economy at different price levels during a period of time. ...
... shows the level of real GDP purchased in the economy at different price levels during a period of time. ...
2000s commodities boom
The 2000s commodities boom or the commodities super cycle was the rise in many physical commodity prices (such as those of food stuffs, oil, metals, chemicals, fuels and the like) which occurred during the decade of the 2000s (2000–2009), following the Great Commodities Depression of the 1980s and 1990s. The boom was largely due to the rising demand from emerging markets such as the BRIC countries, as well as the result of concerns over long-term supply availability. There was a sharp down-turn in prices during 2008 and early 2009 as a result of the credit crunch and sovereign debt crisis, but prices began to rise as demand recovered from late 2009 to mid-2010. Oil began to slip downwards after mid-2010, but peaked at $101.80 on 30 and 31 January 2011, as then Egyptian political crisis and rioting broke out, leading to concerns over both the safe use of the Suez Canal and over all security in Arabia itself. On 3 March, Libya's National Oil Corp said that output had halved due to the departure of foreign workers. As this happened, Brent Crude surged to a new high of above $116.00 a barrel as supply disruptions and potential for more unrest in the Middle East and North Africa continued to worry investors. Thus the price of oil kept rising into the 2010s. The commodities super-cycle peaked in 2011, ""driven by a combination of strong demand from emerging nations and low supply growth."" Prior to 2002, only 5 to 10 per cent of trading in the commodities market was attributable to investors. Since 2002 ""30 per cent of trading is attributable to investors in the commodities market"" which ""has caused higher price volatility.""