Consequences of Business Fluctuations
|
|
- Noel Palmer
- 6 years ago
- Views:
Transcription
1 Aggregate Output Consequences of Business Fluctuations Parts of Chapter 14 + Other Issues Discussion Topics Fluctuations in business activity Consequences of business fluctuations Macroeconomic policy options Four Phases of a Business Cycle Peak Peak Trough Trough Length of cycles varies over time Time 1
2 Causes of Business Cycles Keynesian equilibrium levels differ from full employment - changes to get to full employment gives rise to the cycles Exogenous shocks wars, credit crunch etc. Technological shocks - lumpy changes that increase productivity Political elect different administrations with different policy goals Indicators of Economic Activity Lagging indicators - business inventories, duration of employment, average interest rate Coincident indicators - current production, current disposable income, current sales Leading indicators - new orders for goods, new building permits, new investment in plant and equipment, changes in the money supply Forecasting models - mathematical methods of forecasting future trends in the economy Leading Economic Indicators Conference Board Components 2009 Weight / Factor Average weekly hours, manufacturing Average weekly claims, unemployment insurance Manufacturers new orders, consumer goods and materials Index of supplier deliveries vendor performance Building permits, new private housing units Stock prices, 500 common stocks Money Supply, M Interest rate spread, 10-year treasury bonds less federal funds Index of consumer expectations Manufacturers new orders, non-defense capital goods
3 Leading Economic Indicators Conference Board Components 2017 Weight / Factor Average weekly hours, manufacturing Average weekly claims, unemployment insurance Manufacturers new orders, consumer goods and materials Index of supplier deliveries vendor performance Building permits, new private housing units Stock prices, 500 common stocks Leading Credit Index Interest rate spread, 10-year treasury bonds less federal funds Index of consumer expectations Note replaced money supply in 2012 with an index on interest rates S&D. How it is Supposed to Work Actual activity several months later Indicator index A classical example of a leading indicator 3
4 Most Recent Notice Downturn Sept. Consequences of Business Fluctuations Fluctuations in the unemployment rate (civilian and capital) and implications for policy Fluctuations in the rate of inflation and implications for policy Monthly Unemployment Jan October 2017 Unemployment rate during the great depression was 25% Full employment barometer? 4
5 Monthly Unemployment U.S., Texas, and B/CS 1976 Sept Texas lagging at the recovery? Texas lagged at the start of the recession Calculation of Civilian Unemployment Rate Rate = Number of civilians unemployed Size of total civilian labor force where the size of the total civilian labor force is determined by subtracting those not seeking jobs (homemakers, students, etc.) from the total noninstitutional population (those not in prison) over 16 years of age, as well as, those who are in military service. Example Oct Assume the following values Civilian labor force million Employed persons million Unemployment million Not in force million Rate = =.102 or10.2 percent 1 The civilian labor force equals total population minus those not seeking employment over age 16, those in institutions, and the military. 5
6 October 2009 Unemployment Rates March 2011 March 2013 March 2015 March 2017 Oct All Workers Adult men Adult women Teenagers White Black / African American Hispanic or Latino Earnings Seasonally adjusted Private Workers Oct-09 Mar-11 Mar-13 Mar-15 Mar-17 Oct.-17 Average hours of work /week Average hourly earnings Average weekly earnings Forms of Unemployment Frictional - changing jobs and currently unemployed Cyclical - associated with business cycles Seasonal - associated with seasonal business activity Structural - associated with technological change 6
7 Monthly U.S. Percent Utilization of Refinery Operable Capacity Jan Aug Currently at 92.8 Hurricane Rita Hurricane Ike Decreased from 92 to 81 Dec 2013 Feb What is Inflation? Sustained rise in the general price level Not a change in the price of a single commodity Core rate of inflation excludes fuel and food price increases Deflation (prices falling) vs. disinflation (prices increasing at a slower rate) CPI Index Consumer Price Index (CPI) CPI - represents changes in prices of all goods and services purchased for consumption by urban households Weighted basket of goods Food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services 7
8 Components / Weights in CPI 2016 Food and Beverages Housing Apparel Transportation Medical Care Recreation Education and communication Other Goods and Services Example Sub Category Weights Measuring the CPI The consumer price index is a weighted average of the prices consumers pay for goods and services. It is measured by: Cost of market basket in current year CPI = 100 Cost of market basket in base year Cost current year Cost = W FB (P FB ) + W H (P H ) + + W OTHER (P OTHER ) = (P FB ) (P H ) (P OTHER ) Weights 8
9 Grade Calculations A) Total points = 600 possible = HW + clicker + tests + final + bonus points B) HW 175 points = (sum of HW points / 429) * 175 = number out of 175 Note the value of 429 includes all possible HW C) Clicker points = 75 possible = (sum of clicker points / 95.75)*75 - based on values up to the start of class today will change as we have more clicker questions D) Test points = 200 possible = two highest test scores E) Final 150 points CURRENTLY YOU HAVE ZERO POINTS F) Bonus points added to total points = 10 possible = 5 each for out of class videos G) Up to you to check for missing / problems with grades by Friday j-mjelde@tamu.edu A) We reserve the right to correct errors Calculating Rates of Inflation The rate of inflation can be measured by the percent change in the CPI, or Inflation rate = current CPI previous CPI previous CPI If the CPI was in the last half of 2008 and in the first half of 2009 what was the rate of inflation rate = ( ) = or -1.4% Calculating Rates of Inflation Year CPI Inflation rate = ( ) / = = 3.23% = ( ) / = = 2.85% =( ) / = = 3.84% 9
10 Annual Rates Inflation thought to be under control in this range. FED 2012 long run goal is 2% Brought about a major monetary policy action CPI and Core Index Quarterly Red line core some differences mainly less variability When describing growth in the economy on the nightly newscast, the newscaster will refer to the growth in real GDP after adjustments for inflation. In the above example, real GDP grew over the period, but not at the rate implied by comparisons in nominal terms. 10
11 GDP nominal rate of increase = (86-60)/60 *100 = 43% GDP real rate of increase = (69-60)/60 *100 = 15% Difference is because of inflation and not an increase in productivity Nominal and Real Growth GDP Annual W.E. Phillips New Zealand Economist Educated at London School of Economics Phillips curve and MONIAC Early career Crocodile hunter and cinema manager Studied electrical engineering before the war WWII Singapore and than Java Captured learned Chinese, repaired and miniaturized a secret radio, fashioned a secret water boiler for tea which hooked into camp lighting system 11
12 Price Level Price Level Unemployment Rate Phillips Curve Phillips curve named after British economist A. W. Phillips 9% 4% Policies that reduce unemployment may increase inflation in the short run, and vice versa 3% 6% Inflation Rate Demand Pull Inflation P 1 P 0 AD 0 AD 1 Y 0 Y 1 Y FE AS Inflation rate (P 1 P 0 ) P 0 Aggregate Output Y POT Demand oriented policies that shift the aggregate demand curve from AD 0 to AD 1 pull up the general price level from P 0 to P 1. This small increase in inflation may make sense since output increased from Y 0 to Y 1, which would lower unemployment. Demand Pull Inflation and Unemployment P 3 P 1 P 0 AD 0 AD 1 AD 3 AS Demand oriented policies to maximize output at the economy s potential or Y POT may bring about a substantial increase in the general price level (and hence rate of inflation) for a relatively small gain in output and employment. Inflation rate (P 3 P 1 ) P 1 Y 0 Y Y FE Y 1 POT Aggregate Output Inflationary gap Created Y E = Y POT > Y FE 12
13 Price Level Price Level Price Level Price Level Cost Push Inflation and Unemployment P 1 P 0 AD 0 AS 1 AS 0 Increase in the cost of production thus a decrease is AS 0 to AS 1 may bring about an increase in the general price level (and hence rate of inflation) and a decrease in output and employment. Y 1 Y 0 Inflation rate Aggregate Output (P 1 P 0 ) P 0 Supply Side Normal Range AD 0 AS 0 AS 1 Supply oriented policies that enhance productivity reduce the general price level. P 0 Stimulates Y as with demand side policies P 1 Y 0 Y 1 Y FE Inflation rate (P 1 P 0 ) P 0 Aggregate Output Policies See production Research / Development Technology Infrastructure Subsidies Tax rates on business Demand vs. Supply Policies Demand expansion policy pulls up the general price level. Supply expansion policy reduces the general price level AD 1 AS 0 AS 0 AS 1 AD 0 AD 0 P 1 P 0 P 0 P 1 Y 0 Y 1 Y FE Aggregate Output Both demand and supply oriented policies stimulate aggregate output. Y 0 Y 1 Y FE Aggregate Output 13
14 Price Level Demand vs. Supply Policies AD 1 AS 0 AS 1 In reality, both forms of policy are typically carried out at the same time. AD 0 P 1 P 0 New Equilibrium Change in price levels depends on the shifts in the two curves New Y FE Y 0 Y 1 Y FE Y FE - new Aggregate Output Summary A business cycle has four phases: peak, recession, trough and expansion The two major consequences of business fluctuations are unemployment and inflation Know how to calculate the civilian unemployment rate and the rate of inflation facing consumers Understand the nature of the index of leading economic indicators Understand the concept graphing of demand pull inflation Understand the Phillips curve and demand and supply policy impacts 14
Phases of the Business Cycle. Business Cycle. Business Cycle
Phases of the Business Cycle Business Cycle Definition: alternating increases and decreases in the level of business activity of varying amplitude and length How do we measure increases and decreases in
More informationAGEC 105 Homework 11
1. Define the three main functions of money. AGEC 105 Homework 11 2. Define the three main reasons for the demand for money. 3. What is the main difference between fiat money and a gold standard for money?
More information1. What was the unemployment rate in December 2001?
EC2105, Spring 2002 Weekly Quiz 1 (January 16, 2002) 1. What was the unemployment rate in December 2001? 2. When the Fed meets later this month and decides whether to lower interest rates, it is conducting:
More information3. The phase of the business cycle in which real GDP is at a minimum is called: A. the peak. B. a recession. C. the trough. D. the underside.
1. Most economists agree that the immediate determinant of the volume of output and employment is the: A. composition of consumer spending. B. ratio of public goods to private goods production. C. level
More informationEconomics Unit Four. Macroeconomics
Economics Unit Four Macroeconomics Macroeconomics Macroeconomics is the study of the whole economy together the aggregated spending, saving, and investing decisions of all consumers and businesses describes
More informationGEORGIA PERFORMANCE STANDARDS. Macroeconomics
GEORGIA PERFORMANCE STANDARDS Macroeconomics GEORGIA PERFORMANCE STANDARDS INTERNATIONAL ECONOMICS Macroeconomic Concepts SSEMA1 The student will illustrate the means by which economic activity is measured.
More informationMcGraw-Hill/Irwin 2002 The McGraw-Hill Companies, Inc., All Rights Reserved.
The Business Cycle Macroeconomics The Great Depression was the springboard for modern macroeconomics. Macroeconomics Macroeconomics is the study of aggregate economic behavior, of the economy as a whole.
More informationREAD CAREFULLY Failure to read has been a problem on the exams
Introduction to Agricultural Economics Agricultural Economics 105 Fall 2009 Third Hour Exam Version 1 READ CAREFULLY Failure to read has been a problem on the exams Name Section -3 points for wrong section
More informationName: Days/Times Class Meets: Today s Date:
Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Spring 2008 Exam 3, TTh classes, various versions Read these Instructions carefully! You must follow them exactly! I) On your Scantron card
More informationOUTLINE October 18, Key concepts. Expenditure 10/16/ :53 PM. Focus: Total Expenditure
OUTLINE October 18, 2017 Expenditure = C + I + G + (EX IM), continued 3 equations you must know Measuring Unemployment Measuring Inflation Key concepts When figuring out IF some activity is counted in
More informationAGEC 105 Test 3 Spring 2012
AGEC 105 Test 3 Spring 2012 Name There is only ONE correct answer per multiple choice question. Please put your answer on the attached sheet. DO NOT RIP THE ANSWER SHEET FROM THE TEST. 1. are domestically
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring 2015 Third Exam Version 1
Introduction to Agricultural Economics Agricultural Economics 105 Spring 2015 Third Exam Version 1 Name Section There is only ONE best, correct answer per question. Place your answer on the attached sheet.
More informationAGEC 105 Test 3 Spring 2013
AGEC 105 Test 3 Spring 2013 Name There is only ONE correct answer per multiple choice question. Please put your answer on the attached sheet. DO NOT RIP THE ANSWER SHEET FROM THE TEST. 1. Assume a producer
More informationEconomic Growth, Business Cycles, Unemployment, and Inflation
CHAPTER 24 Economic Growth, Business Cycles, Unemployment, and Inflation Remember that there is nothing stable in human affairs; therefore avoid undue elation in prosperity, or undue depression in adversity.
More informationOUTLINE October 22, 2018
OUTLINE October 22, 2018 Measuring Unemployment and Inflation, continued Concept of Macroeconomic Equilibrium Keynesian Cross Unemployment Equilibrium Effect of being a service economy Consumption Spending
More informationEQ: How Do Changes in AD and SRAS Affect Real GDP, Unemployment, & Price Level?
EQ: How Do Changes in and Affect So, what happens when changes? Increases in Consumption (C), Investment (I), Government Spending (G), & Net Exports (X) will: Increase Total Expenditures ( TE) Increase
More informationUnit 5 Notes. National Economic Performance
Unit 5 Notes National Economic Performance Economic Indicators Economic Indicators are statistics that economists use to determine the health of a nation s economy. We are going to focus on three statistics
More informationCHAPTER 6: MONITORING CYCLES, JOBS, AND THE PRICE LEVEL
Principles of Macroeconomics CHAPTER 6: MONITORING CYCLES, JOBS, AND THE PRICE LEVEL Learning Goals: A. A recession started in March 2001 and ended in November 2001. What defines a recession, who makes
More informationMONITORING JOBS AND INFLATION
21 MONITORING JOBS AND INFLATION After studying this chapter, you will be able to: Explain why unemployment is a problem and define the unemployment rate and other labour market indicators Explain why
More informationEcon 302 Fall Don t forget to download a copy of the Homework Cover Sheet. Mark the location where you handed in your work.
Econ 302 Fall 2005 Don t forget to download a copy of the Homework Cover Sheet. Mark the location where you handed in your work. Homework #1; Chapter 1. This homework has three parts (A, B, C). Each part
More informationAS Economics: ECON2 Economics: The National Economy 2009/10
2 weeks 1 st Sep - 11 th Sep Term 1 Introduction to the objectives and instruments of government This is an introduction to 3.2.3, 3.2.1 macroeconomic policy the Unit and most of the content Candidates
More informationMacroeconomics, Spring 2007, Final Exam, several versions, Early May
Name: _ Days/Times Class Meets: Today s Date: Macroeconomics, Spring 2007, Final Exam, several versions, Early May Read these Instructions carefully! You must follow them exactly! I) On your Scantron card
More informationPractice Test 1: Multiple Choice
Practice Test 1: Multiple Choice 1. If aggregate planned expenditure exceeds real GDP A. actual inventories decrease below their target. B. firms are not maximizing their profits. C. planned consumption
More informationCost Shocks in the AD/ AS Model
Cost Shocks in the AD/ AS Model 13 CHAPTER OUTLINE Fiscal Policy Effects Fiscal Policy Effects in the Long Run Monetary Policy Effects The Fed s Response to the Z Factors Shape of the AD Curve When the
More informationPrinciples of Macroeconomics December 17th, 2005 name: Final Exam (100 points)
EC132.02 Serge Kasyanenko Principles of Macroeconomics December 17th, 2005 name: Final Exam (100 points) This is a closed-book exam - you may not use your notes and textbooks. Calculators are not allowed.
More informationAGGREGATE SUPPLY, AGGREGATE DEMAND, AND INFLATION: PUTTING IT ALL TOGETHER Macroeconomics in Context (Goodwin, et al.)
Chapter 13 AGGREGATE SUPPLY, AGGREGATE DEMAND, AND INFLATION: PUTTING IT ALL TOGETHER Macroeconomics in Context (Goodwin, et al.) Chapter Overview This chapter introduces you to the "Aggregate Supply /Aggregate
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring 2018 Third Hour Exam
1 Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2018 Third Hour Exam There is only ONE best, correct answer per question. Place your answer on the attached sheet. DO NOT
More informationEconomics 1012 A : Introduction to Macroeconomics FALL 2007 Dr. R. E. Mueller Second Midterm Examination October 19, 2007
Economics 1012 A : Introduction to Macroeconomics FALL 2007 Dr. R. E. Mueller Second Midterm Examination October 19, 2007 ================================================================================
More informationAP Macroeconomics Fall Semester 2016
AP Macroeconomics Fall Semester 2016 Ms. Huynh ( Win ), Room 126 Phone: (626) 441-5820 Ext 2126 Email: Thuynh@spusd.net Curricular Overview This semester long course will introduce students to the principles
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring 2014 Third Hour Exam Version 1
Introduction to Agricultural Economics Agricultural Economics 105 Spring 2014 Third Hour Exam Version 1 Name Section There is only ONE best, correct answer per question. Place your answer on the attached
More informationECON 1120: Macroeconomics
ECON 1120: Macroeconomics General Information: Term: 2018 Summer Session Instructor: Staff Language of Instruction: English Classroom: TBA Office hours: TBA Class Sessions Per Week: 5 Total Weeks: 5 Total
More informationPrinciples of Macroeconomics December 15th, 2005 name: Final Exam (100 points)
EC132.01 Serge Kasyanenko Principles of Macroeconomics December 15th, 2005 name: Final Exam (100 points) This is a closed-book exam - you may not use your notes and textbooks. Calculators are not allowed.
More informationECON 012: Macroeconomics
General Information ECON 012: Macroeconomics Term: 2018 Summer Session Class Sessions Per Week: 5 Instructor: Staff Total Weeks: 6 Language of Instruction: English Total Class Sessions: 30 Classroom: TBA
More informationInflation. Chapter Summary and Learning Objectives
CHAPTER 9 Unemployment and Inflation Chapter Summary and Learning Objectives 9.1 Measuring the Unemployment Rate, the Labor Force Participation Rate, and the Employment-Population Ratio (pages 268 277)
More informationECON 012: Macroeconomics
ECON 012: Macroeconomics General Information: Term: 2018 Summer Session Instructor: Staff Language of Instruction: English Classroom: TBA Office Hours: TBA Class Sessions Per Week: 5 Total Weeks: 6 Total
More informationECON 012: Macroeconomics
ECON 012: Macroeconomics General Information: Term: 2019 Summer Session Instructor: Staff Language of Instruction: English Classroom: TBA Office Hours: TBA Class Sessions Per Week: 5 Total Weeks: 5 Total
More informationMONEY. Economics Unit 4 Macroeconomics Just the Facts Handout
MONEY Economics Unit 4 Macroeconomics Just the Facts Handout Barter Economy A barter economy is an economy with no money. The only way you can get what you want in a barter economy is to trade something
More informationFigure Sarver
I. Learning Objectives In this chapter students will learn: A. About the business cycle and its primary phases. B. How unemployment and inflation are measured. C. About the types of unemployment and inflation
More informationPrinciples of Macroeconomics
Principles of Macroeconomics Academic Program: MSc in Banking and Finance Semester: Spring 2012/13 Instructor: Dr. Nikolaos I. Papanikolaou Office: Luxembourg School of Finance, KB2-E02-21 Phone: (00352)
More informationThe diagram above illustrates the pattern of: A) Wage movements over time B) Price level movements C) Economic growth patterns D) Business cycles
Problem Set Econ 2013: Chapter 9: Business Cycles, Unemployment, and Inflation Name ID: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) 1) The
More informationMcGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
12 Aggregate Demand and Aggregate Supply McGraw-Hill/Irwin Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Aggregate Demand Real GDP desired at each price level Inverse relationship
More informationECON 201. The Business Cycle. Business Cycle 4 phases 10/1/2009. Chapter 6 Business Cycles, Unemployment, & Inflation
ECON 201 Chapter 6 Business Cycles, Unemployment, & Inflation The Business Cycle The U.S. has experienced economic instability associated with business cycles. Business Cycles alternating rises and declines
More informationShanghai Livingston American School Quarterly / Trimester Plan 3 AP Macro
Shanghai Livingston American School Quarterly / Trimester Plan 3 AP Macro Concept / Topic To Teach: Unit 4 MODULE 22: SAVING, INVESTMENT, AND THE FINANCIAL Specific Objectives: ELD Standards SYSTEM Week
More informationSuccess is the sum of small efforts, repeated day in and day out. Robert Collier Test Yourself - Business Cycles and Unemployment
Success is the sum of small efforts, repeated day in and day out. Robert Collier Test Yourself - Business Cycles and Unemployment What is a business cycle? A business cycle is alternating periods of economic
More informationECO403 - Macroeconomics Faqs For Midterm Exam Preparation Spring 2013
ECO403 - Macroeconomics Faqs For Midterm Exam Preparation Spring 2013 FAQs Question: 53-How the consumer can get the optimal level of satisfaction? Answer: A point where the indifference curve is tangent
More informationChapter 7 Unemployment, Inflation, and Long-Run Growth. Unemployment. Unemployment. Measuring Unemployment
Chapter 7, Inflation, and Long-Run Growth Measuring Components of the Rate The Costs of Inflation The Consumer Price Index The Costs of Inflation Long-Run Growth Output and Productivity Growth Measuring
More informationRevision Sheets. AS Economics National Economy in a Global Context. Revision Sheets
2018 http://www.publicdomainpictures.net/pictures/150000/velka/uk-map.jpg AS Economics National Economy in a Global Context Macroeconomic Objectives Low unemployment Improve external performance Objectives
More informationIndicators of the Kansas Economy
Governor s Council of Economic Advisors Indicators of the Kansas Economy A Review of Economic Trends and the Kansas Economy 1000 S.W. Jackson St. Suite 100 Topeka, KS 66612-1354 Phone: (785) 296-0967 Fax:
More informationSSEMA1 The student will illustrate the means by which economic activity is measured. a. Explain that overall levels of income, employment, and prices
SSEMA1 The student will illustrate the means by which economic activity is measured. a. Explain that overall levels of income, employment, and prices are determined by the spending and production decisions
More informationGarden City High School Course: AP Macroeconomics
Garden City High School Course: AP Macroeconomics Instructional Philosophy The Advanced Placement Macroeconomics curriculum is a full year program designed to provide both an overview of economics. Economics
More informationMACROECONOMICS FOR ECONOMIC POLICY
COURSE SYLLABUS MACROECONOMICS FOR ECONOMIC POLICY Instructors: Adam Reiff (lecturer), Rita Peto (TA) Department: Department of Economics, Central European University Semester and year: Fall, 2014/2015
More informationIntroduction. Learning Objectives. Learning Objectives. Chapter 7. Explain how the U.S. government calculates the official unemployment rate
Chapter 7 The Macroeconomy:, Inflation, and Deflation Introduction Why is it that the responsibility for announcing the start of economic contractions and expansions does not rest with elected officials?
More informationQuestions and Answers. Intermediate Macroeconomics. Second Year
Questions and Answers Intermediate Macroeconomics Second Year Chapter2 Q1: MCQ 1) If the quantity of money increases, the A) price level rises and the AD curve does not shift. B) AD curve shifts leftward
More informationModest Economic Growth and Falling GDP Gap
Modest Economic Growth and Falling GDP Gap -. -. U.S. Economic Output (Real GDP - Quarterly Growth Rate).................................... : : : : : : : : : : -. -. -. -. -. -. -. -. -. -. -. -. -. -.
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Fall 2017 Third Hour Exam Version 1
Name Introduction to Agricultural Economics Agricultural Economics 105 Fall 2017 Third Hour Exam Version 1 There is only ONE best, correct answer per question. Place your answer on the attached sheet.
More informationTest (1) Most of the direct spending at the state government level is on Defense. Public safety. Transportation. Education.
Test 2 1. (1) If production in the economy is efficient, then changes in market prices Move us along the perimeter of the production possibilities curve. Move us to a point above the production possibilities
More information1 of 15 12/1/2013 1:28 PM
1 of 15 12/1/2013 1:28 PM Policy tools include Population growth, spending behavior, and invention. Wars, natural disasters, and trade disruptions. Tax policy, government spending, and the availability
More informationEconomic Fundamentals
CHAPTER 5 Economic Fundamentals INTRODUCTION Economics, put simply, is the study of shortages supply vs. demand. As the demand for a product or service rises, the price of those goods or services will
More informationUnit 6 Measuring and Monitoring Economics (Ch 12 and 13)
Unit 6 Measuring and Monitoring Economics (Ch 12 and 13) -Macroeconomics 0 & Microeconomics- Government tries to prevent free enterprise from having wild swings in economic behavior. Microeconomics - analyzes
More informationIB Economics Unit 2: Macroeconomics. Class Assignments: Week #11
IB Economics Unit 2: Class Assignments: Week #11 Monday November 9, 2015 Read & Discuss: 11.1 The Circular Flow Model of Income pages 234-237 Explain: The Circular Flow Diagram on page 236 (put in your
More information2. In terms of dollar volume of exports and imports, the most important trading partner for the United States is:
1. In the U.S. economy, all are generally accepted economic functions of government except: A) The provision of public goods B) The production and distribution of consumer goods C) Pursuing policies that
More informationECON 3010 Intermediate Macroeconomics Final Exam
ECON 3010 Intermediate Macroeconomics Final Exam Multiple Choice Questions. (60 points; 3 pts each) #1. An economy s equals its. a. consumption; income b. consumption; expenditure on goods and services
More informationMacroeconomics CHAPTER 15
Macroeconomics CHAPTER 15 Labor Markets, Unemployment, and Inflation PowerPoint Slides by Can Erbil 2006 Worth Publishers, all rights reserved What you will learn in this chapter: The meaning of the natural
More informationECON 3010 Intermediate Macroeconomics Chapter 10
ECON 3010 Intermediate Macroeconomics Chapter 10 Introduction to Economic Fluctuations Facts about the business cycle GDP growth averages 3 3.5 percent per year C (consumption) and I (Investment) fluctuate
More informationIntroduction to Agricultural Economics Agricultural Economics 105 Spring Third Hour Exam Version 1
Name Introduction to Agricultural Economics Agricultural Economics 105 Spring 2011 Third Hour Exam Version 1 For the multiple choice questions, circle the most correct answer (only one answer per question).
More informationEconomic Ups and Downs: The PowerPoint
: The PowerPoint Once you have finished reading and answering the questions in the attached Economic Ups and Downs worksheet, you should summarize the information in a PowerPoint presentation. Email the
More informationEconomics. Market Indicators Session 2
Economics Market Indicators Session 2 National Association of Credit Management Graduate School of Credit and Financial Management American University Washington, DC June 23, 2018 1 What you will learn
More informationMAKING SENSE OF ECONOMIC INDICATORS
WELCOME TO THE WEBINAR FRB MIAMI & FRB NASHVILLE TEACHERS! 1 WEBINAR LINK HTTP://FRBATL.ADOBECONNECT.COM/ECONINDICATORS/ DIAL-IN NUMBER (MUST USE FOR AUDIO) 855-377-2663 ACCESS CODE: 71032685 REMINDER:
More informationEMPLOYMENT, UNEMPLOYMENT, AND WAGES Macroeconomics in Context (Goodwin et al.), 3 rd edition
Chapter 8 EMPLOYMENT, UNEMPLOYMENT, AND WAGES Macroeconomics in Context (Goodwin et al.), 3 rd edition Chapter Overview This chapter introduces you to standard macro labor topics such the definition of
More informationDunbar s Big Review Sheet AP Macroeconomics Exam Content Area [Hubbard Textbook pages] (percentage coverage on AP Macroeconomics Exam) I.
Dunbar s Big Review Sheet AP Macroeconomics Exam Content Area [Hubbard Textbook pages] (percentage coverage on AP Macroeconomics Exam) I. Basic Economic Concepts (8-12%) Three Fundamental Questions [8]:
More informationThe Conference Board U.S. Business Cycle Indicators SM U.S. LEADING ECONOMIC INDICATORS AND RELATED COMPOSITE INDEXES FOR MAY 2007
Brussels Copenhagen Frankfurt Hong Kong London Mexico City New Delhi Ottawa New York Chicago San Francisco Washington FOR RELEASE: 10:00 A.M. ET, THURSDAY, JUNE 21, 2007 The Conference Board U.S. Business
More informationMacro Economic questions Part I
Macro Economic questions Part I Question Budget Rental Car buys new automobiles for its business from a U.S. company. The value of transaction would be included in which category of the GDP? a. consumer
More informationIB Economics The Level of Overall Economic Activity 2.4: The Business Cycle Activity
IB Economics: www.ibdeconomics.com 2.4 THE BUSINESS CYCLE: STUDENT LEARNING ACTIVITY Answer the questions that follow. 1. DEFINITIONS Define the following terms: Business cycle Contraction Economic growth
More information1) GDP is an accurate measure of the social well being of a country.
Macro Problem Set 2 WCC Fall 2017 Directions: The True/False and Multiple Choice questions do not have to be turned in for credit. It would be foolish, however, not to spend a great deal of time working
More informationIf the Economy s so Bad, Why Is the Unemployment Rate so Low?
If the Economy s so Bad, Why Is the Unemployment Rate so Low? Testimony to the Joint Economic Committee March 7, 2008 Rebecca M. Blank University of Michigan and Brookings Institution Rebecca Blank is
More informationEconomic Indicators For Manufacturing Executives
Economic Indicators For Manufacturing Executives Valuable Data for a Complex World Presented by: Cliff Waldman Chief Economist, MAPI Foundation cwaldman@mapi.net Today s Presentation The Value of Economic
More informationDate: Block # Economics Guided Notes Unit Four Day #2 CPI, Unemployment and the Business Cycle
Name: Date: Block # Economics Guided Notes Unit Four Day #2 CPI, Unemployment and the Business Cycle Directions Activity listen and view today s PowerPoint lesson. As you view each slide, write in any
More informationProduct Markets and National Output
Product Markets and National Output Chapters 11 and 12 Discussion Topics Circular flow of payments Composition and measurement of gross domestic product Consumption, saving, and investment Equilibrium
More information1 Figure 1 (A) shows what the IS LM model looks like for the case in which the Fed holds the
1 Figure 1 (A) shows what the IS LM model looks like for the case in which the Fed holds the money supply constant. Figure 1 (B) shows what the model looks like if the Fed adjusts the money supply to hold
More informationGrade 11 Economics Unit #4: Macroeconomics Practice Test and Answer Key
Name: Grade 11 Economics Unit #4: Macroeconomics Practice Test and Answer Key Note: Section A of the actual test will contain multiple-choice questions. You can practice this type of question within the
More informationEQ: What happens to equilibrium price and quantity when there is a change in supply or demand?
EQ: What happens to equilibrium price and quantity when there is a change in supply or demand? The main thing that affects Supply is production costs. Costs of factors of production affect supply: Employee
More informationEconomics Chapters Duke Unit III Measuring Economic Performance
Economics Chapters 12-16 Duke Unit III Measuring Economic Performance Chapter 12 Section 1 (Pgs. 301-308) Gross Domestic Product (GDP)- 1. What is the difference between final goods and services as opposed
More informationMacroeconomic TOPIC Measurements, Part I: Prices and Unemployment
1 Macroeconomic TOPIC Measurements, Part I: Prices and Unemployment Employment and Unemployment Population Survey In the U.S., the population is divided into two groups: The working-age population or civilian
More informationBSc (Hons) Actuarial Science
BSc (Hons) Actuarial Science Cohorts : BAS/10B/FT & BAS/13/FT Examinations for 2013/2014 Semester 2 MODULE: MACROECONOMICS MODULE CODE : ECON1101C Duration : 2 Hours 15 Minutes Reading Time: 15 Minutes
More informationUnit 6 Measuring the Economy
Unit 6 Measuring the Economy - Study Guide - Answer, Explain and define the following: 1) GNP 2) GDP 3) Dept. of Commerce 4) Intermediate goods 5) Disposable personal income 6) Contraction 7) Recession
More informationChapter Outline. Chapter 6 Every Macroeconomic Word You Have Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession and Depression
Chapter 6 Every Macroeconomic Word You Have Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession and Depression Chapter Outline Measuring the Economy Real Gross Domestic Product and Why
More informationA. unchanged decrease B. surplus decrease C. unchanged no change D. surplus increase E. unchanged increase A. A B. B C. C D. D E. E.
AP Macroeconomics Test (Answers on last Page) 1. Which of the following correctly describes the components of Aggregate Demand? A. Consumption expenditures + Investment expenditures + Government expenditures
More informationCHAPTER 14 ECONOMIC INSTABILITY
CHAPTER 14 ECONOMIC INSTABILITY Business Cycles Economic growth is something that is beneficial to almost everyone Sometimes though, economic growth is interrupted by business cycles largely systematic
More informationECON 330: Money and Banking HW 14 Solution
ECON 330: Money and Banking HW 14 Solution Based on Steven Zhang, edited by Alan Yang 22.5 As labor productivity grows, the long-run aggregate supply curve shifts to the right. This is because the existing
More informationUnemployment and Inflation
Unemployment and Inflation By A. V. Vedpuriswar October 15, 2016 Inflation This refers to the phenomenon by which the price level rises and money loses value. There are two kinds of inflation: Demand pull
More informationE202-Fall 2009 Department Final Examination Version C
Multiple Choice: On your answer sheet darken in the letter of your choice for each question. You should choose the suggested answer that BEST complete the statement or answers the question. 1) Suppose
More informationInterview Preparation Lecture. Venue: Career Launcher Tambaram Centre Date: 26 th January, 2018
Interview Preparation Lecture Venue: Career Launcher Tambaram Centre Date: 26 th January, 2018 Session One Duration: 1.5 hours What to expect from B-schools & what B-schools expects from you Why Economics??
More informationMeasuring Unemployment Some Key Terms
Measuring Unemployment Some Key Terms Claimant Count (JSA) Labour Force Survey (LFS) The number of people officially claiming unemployment- related benefits must be actively seeking work All those actively
More informationBusiness cycle. Giovanni Di Bartolomeo Sapienza University of Rome Department of economics and law
Sapienza University of Rome Department of economics and law Advanced Monetary Theory and Policy EPOS 2013/14 Business cycle Giovanni Di Bartolomeo giovanni.dibartolomeo@uniroma1.it US Real GDP Real GDP
More informationINTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 183 : FOUNDATION ECONOMICS (MACROECONOMICS) RESIT EXAMINATION : AUGUST 2002 SESSION
ECO 183 (R) / Page 1 of 9 INTI COLLEGE MALAYSIA UNIVERSITY FOUNDATION PROGRAMME ECO 183 : FOUNDATION ECONOMICS (MACROECONOMICS) RESIT EXAMINATION : AUGUST 2002 SESSION Section A : Answer ALL questions.
More informationMeasuring the Economy. Measur
Measuring the Economy Measur Economic indicators Economic indicators are statistics that help economists judge the health of an economy. They provide information about important aspects of the economy.
More informationPrinciples of Macroeconomics. Problem Set 1
Principles of Macroeconomics Problem Set 1 Sherif Khalifa 1. Consider the market for CD players: Price Supply 20 15 10 Demand 175 250 325 Quantity The equilibrium price= The equilibrium quantity= If the
More informationWhat is Macroeconomics?
MACRO ECONOMICS 1 What is Macroeconomics? Macroeconomics is the study of the large economy as a whole. It is the study of the big picture. Instead of analyzing one consumer, we analyze everyone. Instead
More informationAggregate Supply and Aggregate Demand
Aggregate Supply and Aggregate Demand ECO 301: Money and Banking 1 1.1 Goals Goals Specific Goals Be able to explain GDP fluctuations when the price level is also flexible. Explain how real GDP and the
More informationBusiness Cycle Theory
Business Cycle Theory Changes in Business Activity Economics, Unit: 06 Lesson: 01 Objectives 1.Describe phases of business cycle 2.Identify and explain the factors that cause business cycles 3.Analyze
More information