BUSINESS CYCLESAND FISCAL POLICY IN AN OPEN ECONOMY
... In view of the differences in the views and practice on fiscal policy activism, it is noteworthy that all OECD- countries have a substantial fiscal activism via the automatic response of public expenses and in particular tax revenues to the business cycle situation. These may work as automatic stabi ...
... In view of the differences in the views and practice on fiscal policy activism, it is noteworthy that all OECD- countries have a substantial fiscal activism via the automatic response of public expenses and in particular tax revenues to the business cycle situation. These may work as automatic stabi ...
Building a Model of Aggregate Supply and
... The interest rate eect is that as prices for outputs rise, the same purchases will take more money or credit to accomplish. This additional demand for money and credit will push interest rates higher. In turn, higher interest rates will reduce borrowing by businesses for investment purposes and red ...
... The interest rate eect is that as prices for outputs rise, the same purchases will take more money or credit to accomplish. This additional demand for money and credit will push interest rates higher. In turn, higher interest rates will reduce borrowing by businesses for investment purposes and red ...
Solved MCQs OF ECO401 http://www.oup.com/uk/orc/bin
... As we all know that in oligopoly there are only few large player in the market so that they create a price war among one and other because each one of them will wan to get a big share in the market and the techniques which is being used to get the large market share are branding marketing and advert ...
... As we all know that in oligopoly there are only few large player in the market so that they create a price war among one and other because each one of them will wan to get a big share in the market and the techniques which is being used to get the large market share are branding marketing and advert ...
Circular flow of economic activity through a simple market economy
... Increase in input costs. A increase in the cost of labor or some other input will make pizza production more costly and less profitable at a given price, so producers will supply less. A decrease in the number of producers. The market supply is the sum of the supplies of all producers, so a decreas ...
... Increase in input costs. A increase in the cost of labor or some other input will make pizza production more costly and less profitable at a given price, so producers will supply less. A decrease in the number of producers. The market supply is the sum of the supplies of all producers, so a decreas ...
Modeling Oil Prices and Their Effects
... short and intermediate run, as idle ships may be reactivated or active ships may simply cut short layovers and run faster. ● As the demand schedule for shipping services shifts out due to increased economic activity, the slope of the supply curve becomes increasingly steeper and freight rates increa ...
... short and intermediate run, as idle ships may be reactivated or active ships may simply cut short layovers and run faster. ● As the demand schedule for shipping services shifts out due to increased economic activity, the slope of the supply curve becomes increasingly steeper and freight rates increa ...
Chapter 14
... demand for consumption goods.” • A decrease in the price level makes consumers feel more wealthy, which in turn encourages them to spend more. • The increase in consumer spending means a larger quantity of goods and services demanded. ...
... demand for consumption goods.” • A decrease in the price level makes consumers feel more wealthy, which in turn encourages them to spend more. • The increase in consumer spending means a larger quantity of goods and services demanded. ...
Timber Price Indices - Forestry Commission
... few, such as alder, have cone-like structures for their seeds which are not true cones. ...
... few, such as alder, have cone-like structures for their seeds which are not true cones. ...
Becker`s (Note on) Restaurant (Pricing) Revisited:
... up or not. No one will be in line, if they know that they will not be seated. Potential visitors will collect information about the restaurant including its seating capacity. Hence, everybody arriving at the restaurant is aware of SS in Figure 1. Secondly, the daily queue is not equal to total deman ...
... up or not. No one will be in line, if they know that they will not be seated. Potential visitors will collect information about the restaurant including its seating capacity. Hence, everybody arriving at the restaurant is aware of SS in Figure 1. Secondly, the daily queue is not equal to total deman ...
2 - The Belfer Center for Science and International Affairs
... growing more rapidly than the emissions from coal (2.4% pa for transportation compared to 1.1% for coal8) and also because the sources are dispersed, in the hands of consumers and not suitable in the near future for technical fixes such as CO2 capture and sequestration. A reduction in fuel consumed ...
... growing more rapidly than the emissions from coal (2.4% pa for transportation compared to 1.1% for coal8) and also because the sources are dispersed, in the hands of consumers and not suitable in the near future for technical fixes such as CO2 capture and sequestration. A reduction in fuel consumed ...
Powerpoint Presentation
... 2 countries: home & foreign. 2 goods: cloth & food. 2 factors of production: labor & capital. Mix of labor and capital used varies across goods. Supply of labor and capital: • constant in each country • varies across countries 6. Both labor and capital are mobile factors (long run). • equalize retur ...
... 2 countries: home & foreign. 2 goods: cloth & food. 2 factors of production: labor & capital. Mix of labor and capital used varies across goods. Supply of labor and capital: • constant in each country • varies across countries 6. Both labor and capital are mobile factors (long run). • equalize retur ...
Economics for Today 2nd edition Irvin B. Tucker
... a. both the price level and real GDP. b. only real GDP. c. only the price level. d. real GDP and the price level. C. Along the vertical range of the aggregate supply curve, the economy is at full employment and only the price ...
... a. both the price level and real GDP. b. only real GDP. c. only the price level. d. real GDP and the price level. C. Along the vertical range of the aggregate supply curve, the economy is at full employment and only the price ...
Value Theory, the Transformation Problem and Crisis Theory
... Gold is not money by nature, but money is by nature gold Long before the rise of capitalist production, commodity production arose out of accidental exchanges of different products of human labor. As this process developed, one or at most a few commodities emerged as universal equivalents. Over thou ...
... Gold is not money by nature, but money is by nature gold Long before the rise of capitalist production, commodity production arose out of accidental exchanges of different products of human labor. As this process developed, one or at most a few commodities emerged as universal equivalents. Over thou ...
What causes house price bubble in an emerging economy
... where HPIt refers to housing prices, DYt refers to disposable income, BSE denotes Bombay Stock Exchange Index, NFCt denotes non-food bank credit, REERt indicates real effective exchange rate and RIRt denotes real interest rates. Before undertaking empirical analysis, it is important to analyse the r ...
... where HPIt refers to housing prices, DYt refers to disposable income, BSE denotes Bombay Stock Exchange Index, NFCt denotes non-food bank credit, REERt indicates real effective exchange rate and RIRt denotes real interest rates. Before undertaking empirical analysis, it is important to analyse the r ...
150 Years of Boom and Bust - Federal Reserve Bank of Dallas
... basically in line with the evolution of the identified structural shocks in Figure 8 in this online-appendix and the accumulated effects of the structural shocks in Figure 1 in the paper. In the late 1840s the real price of copper was low owing to the British railway crisis from 1847 to 1848 (see Ki ...
... basically in line with the evolution of the identified structural shocks in Figure 8 in this online-appendix and the accumulated effects of the structural shocks in Figure 1 in the paper. In the late 1840s the real price of copper was low owing to the British railway crisis from 1847 to 1848 (see Ki ...
Aggregate Demand and Supply
... • Aggregate supply is the curve that shifts to return the economy to full employment. • Given that we have emphasized sticky wages, over other theories of the slope of the AS curve, lets use wage flexibility in the long-run to explain how the AS shifts and returns the economy to YFE • The basic idea ...
... • Aggregate supply is the curve that shifts to return the economy to full employment. • Given that we have emphasized sticky wages, over other theories of the slope of the AS curve, lets use wage flexibility in the long-run to explain how the AS shifts and returns the economy to YFE • The basic idea ...
Aggregate Demand and Aggregate Supply
... APPLICATION 3: HOW THE U.S. ECONOMY HAS COPED WITH OIL PRICE FLUCTUATIONS Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result was that gasoline prices, adjusted for inflation, were lower than they had ever been in over 50 years. In ...
... APPLICATION 3: HOW THE U.S. ECONOMY HAS COPED WITH OIL PRICE FLUCTUATIONS Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result was that gasoline prices, adjusted for inflation, were lower than they had ever been in over 50 years. In ...
Price Level
... • Aggregate supply is the curve that shifts to return the economy to full employment. • Given that we have emphasized sticky wages, over other theories of the slope of the AS curve, lets use wage flexibility in the long-run to explain how the AS shifts and returns the economy to YFE • The basic idea ...
... • Aggregate supply is the curve that shifts to return the economy to full employment. • Given that we have emphasized sticky wages, over other theories of the slope of the AS curve, lets use wage flexibility in the long-run to explain how the AS shifts and returns the economy to YFE • The basic idea ...
ARE PRICES TOO STICKY? NATIONAL BUREAU OF ECONOMIC RESEARCH Cambridge, MA 02138
... reduces the variability of real aggregate demand, which benefits all firms. The externality leads firms facing menu costs to choose excessive price stickiness, which in turn leads to excessively large economic fluctuations. Most important, we show that the reduction in average welfare that results ...
... reduces the variability of real aggregate demand, which benefits all firms. The externality leads firms facing menu costs to choose excessive price stickiness, which in turn leads to excessively large economic fluctuations. Most important, we show that the reduction in average welfare that results ...
In particular, the assumptions about the wage
... Two factors of production: Labor (L), Capital (K) Both countries have the same technologies (production functions), but have different endowments of capital and labor. In particular, England has more capital than Portugal, while Portugal has more labor than England. Both manufactures and food are pr ...
... Two factors of production: Labor (L), Capital (K) Both countries have the same technologies (production functions), but have different endowments of capital and labor. In particular, England has more capital than Portugal, while Portugal has more labor than England. Both manufactures and food are pr ...
On the Sources of Oil Price Fluctuations Deren ÜNALMIŞ
... There are a few features of our model that are worth emphasizing. First, we incorporate oil demand in a relatively simple manner as in Blanchard and Gali (2008), while it is this simplicity that allows us to get analytical insights into both the causes and the international transmission mechanism of ...
... There are a few features of our model that are worth emphasizing. First, we incorporate oil demand in a relatively simple manner as in Blanchard and Gali (2008), while it is this simplicity that allows us to get analytical insights into both the causes and the international transmission mechanism of ...
the consumer price index
... What Is In the CPI’s Basket? When constructing the consumer price index, the Bureau of Labor Statistics tries to include all the goods and services that the typical consumer buys. Moreover, it tries to weight these goods and services according to how much consumers buy of each item. Figure 1 shows t ...
... What Is In the CPI’s Basket? When constructing the consumer price index, the Bureau of Labor Statistics tries to include all the goods and services that the typical consumer buys. Moreover, it tries to weight these goods and services according to how much consumers buy of each item. Figure 1 shows t ...
Privatization and Nationalization Cycles
... ownership changes: nationalization of natural resource industries tends to occur when the price of the corresponding commodity is high. Duncan (2006) investigated the causes of expropriation in the minerals sectors of developing country exporters. In this study, expropriation is de…ned as any act b ...
... ownership changes: nationalization of natural resource industries tends to occur when the price of the corresponding commodity is high. Duncan (2006) investigated the causes of expropriation in the minerals sectors of developing country exporters. In this study, expropriation is de…ned as any act b ...
Prices in Motion: Towards a Schumpeterian Price Theory*
... Although his analysis is holistic, price movements provide a logical starting point for Schumpeter’s discussion of movements in measures of economic activity. By focusing on the price level Schumpeter is able to provide clearer predictions than are possible for individual prices or for many other ec ...
... Although his analysis is holistic, price movements provide a logical starting point for Schumpeter’s discussion of movements in measures of economic activity. By focusing on the price level Schumpeter is able to provide clearer predictions than are possible for individual prices or for many other ec ...
romewp2007-02 - Research on Money in the Economy” ROME
... measure because assets are, like any other goods and services of final demand, bought and sold by market agents. From this viewpoint, asset prices would actually be assigned the same status as goods and services of current production. In view of the above one could think about broadening the policy ...
... measure because assets are, like any other goods and services of final demand, bought and sold by market agents. From this viewpoint, asset prices would actually be assigned the same status as goods and services of current production. In view of the above one could think about broadening the policy ...
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.""