National Debt: It is Not Just a Number‚ It is Our Future Miranda Rosenbaum Macroeconomics Professor C. Simkonis April 29‚ 2008 Rosenbaum 1 As a nation‚ America has accumulated a tremendous amount of debt which will affect not only the lives of the current citizens‚ but generations thereafter. Currently‚ the United States public debt is approximately $9.5 trillion‚ in long form‚ that’s $9‚500‚000‚000‚000. This ridiculous amount
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No. 119 ECONOMIC GROWTH AND INCOME INEQUALITY: THEORETICAL BACKGROUND AND EMPIRICAL EVIDENCE Cesar Gallo 2002 Working Paper No. 119 ISSN 14743280 ECONOMIC GROWTH AND INCOME INEQUALITY: THEORETICAL BACKGROUND AND EMPIRICAL EVIDENCE Cesar Gallo 2002 Development Planning Unit University College London 9 Endsleigh Gardens London‚ WC1H 0ED dpu@ucl.ac.uk 2 ECONOMIC GROWTH AND INCOME INEQUALITY: THEORETICAL BACKGROUND AND EMPIRICAL EVIDENCE CONTENTS 1 Introduction 4 2
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Structure of the Analysis Design The experiment wants to compare the steady state level of the economy for all the models‚ which is considered the baseline case‚ in period 0‚ to a state where the economy experiences an unanticipated scal or monetary shock‚ in period 1. The monetary shocks considered are shocks to the interest rate reaction function equal to 1% compared to the steady-state value for one year. The temporary scal policy shocks correspond to an increase in spending or a decline in
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Preliminary Economics Topic One: Introduction to Economics The Nature of Economics The Economic Problem: Wants are unlimited but resources are scarce A Market Economy is when all major economic decisions are made by individuals and business who are motivated by self-interest A Centrally Planned Economy is where the government structures and runs the market and makes all economic decisions Australia operates with a Mixed Economy‚ with elements of both a Market Economy and a Centrally
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public goods. Recall that for public goods‚ in equilibrium all agents consume the same quantity but may face different prices1. As it is framed in our textbook‚ the Lindahl equilibrium occurs when the perunit price paid by each agent sums to the total per unit cost of the public good. The Graph We start with a good ol’ fashioned demand curve for a public good. The lower the price of the good‚ the more Person 1 wants to consume. Now imagine that the dashed horizontal line is the full price of the
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Suppose price of baguette is $1 and price of sushi is $5‚ then to maximize total utility‚ a rational consumer should consume until: a) the marginal utility of baguette divided by the marginal utility of sushi is 1 b) the marginal utility of baguette divided by the marginal utility of sushi is 5 c) the marginal utility of baguette divided by the marginal utility of sushi is 1/5 d) none of the above 2. A perfectly competitive industry is one where a) All
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you buy the goods and services you do? It must be because they provide you with satisfy. You feel better off because you have purchased them. Economists call this satisfaction utility. Benefits that consumers obtain from goods & services they consume is utility. Utility = Satisfaction/Happiness/Pleasure one gets from consuming a good. Utility is difficult to quantify‚ as it differs between people and situations Measured in “utils” Faculty of Business‚ Communications and Law INTI International
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consumer equilibrium. CDs cost 10 dollars each and cassette tapes only 2 dollars each. I consume CDs and cassettes. You consume only cassettes. What can you infer about my MRS (marginal rate of substitution) of CDs and tapes? What about your MRS. Since both individuals are in consumer equilibrium‚ for you‚ the MRS should equal the price ratio since you consume both goods. Hence MRS = 10/2 = 5. For me since I consume only cassettes at my equilibrium‚ it implies that I consider CD’s a neutral good. Therefore
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Consumption vs. Expenditure Mark Aguiar Federal Reserve Bank of Boston Erik Hurst University of Chicago NBER * We would like to thank Daron Acemoglu‚ Fernando Alvarez‚ Susanto Basu‚ Marianne Bertrand‚ Mark Bils‚ Ricardo Caballero‚ Steve Davis‚ Lars Hansen‚ Jonathon Heathcote‚ Michael Hurd‚ Anil Kayshap‚ Helen Levy‚ Anna Lusardi‚ Chris Mayer‚ Amil Petrin‚ Karl Scholz‚ Rob Shimer‚ Jon Skinner‚ Mel Stephens‚ Alwyn Young‚ Steve Zeldes‚ and two anonymous referees‚ along with seminar
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ECONOMICS 102 PRACTICE MIDTERM #2 Covered: Chapter 5 Large Open Economy Chapter 7 (No velocity or elasticity) Chapter 9 (No AD/AS model) A. Multiple choice 1. The nominal demand for money is proportional to a. real income. b. the nominal interest rate. c. the nominal interest rate on money. d. the price level. e. None of the above. 2. Lower interest rates increase the real quantity of money demanded a. by changing the distribution of wealth toward the poor‚ who have
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