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Real GDP:
Real GDP per Worker:
Investment as a Share of Potential GDP:
Consumption as a Share of Potential GDP:
Gross Exports as a Share of Potential GDP:
Imports as a Share of Potential GDP:
Net Exports as a Share of Potential GDP:
Nominal Short-Term Safe Rate:
Long-Term Real Safe Rate:
Long-Term Risky Real Rate:
Real Exchange Rate (Value of Foreign Goods/Currency):
Lecture Support: http://nbviewer.jupyter.org/github/braddelong/LSF18E101B/blob/master/The_Course_of_the_Cycle.ipynb
The Course of the Cycle: https://www.icloud.com/keynote/0ES05SbDHmKarvpJcJdKgfXng
Real GDP
Real GDP per Worker
Investment Spending as a Share of Potential GDP
Personal Consumption Expenditures as a Share of Potential GDP
Gross Exports
Gross Imports
The Trade Balance
Short-Term Safe Nominal Interest Rate: Treasury Bills
Long-Term Safe Real Interest Rate
Long-Term Risky Real Interest Rate
Real Exchange Rate
Price Level
Inflation Rate
(A) The primary reason we are making the flexprice assumption right now is:
The easiest way to solve the flexprice model is through examining the flow-of-funds through financial markets because:
(A) The primary reason we are making the sticky price-wages-debt assumption right now is:
…it was because:
…suppose foreign exchange speculators become more pessimistic about the dollar so that the parameter εo goes up by an amount Δεo. The relevant pieces of the flexprice model are:
$ {\Delta}{\epsilon} = {\Delta}{\epsilon}_o - {\epsilon}_r\left({\Delta}r\right) $
$ {\Delta}I = - I_r\left({\Delta}r\right) $
$ {\Delta}NX = - x_{\epsilon}{\epsilon}_r\left({\Delta}r\right) $
This increased pessimism leads:
…an increase in consumer confidence co leads to:
…an increase in the marginal propensity to consume cy leads to:
an increase in the multiplier μ a decrease in the multiplier μ no change in the multiplier μ not enough information to tell…
We study business cycles because:
…to the extent that production and national income are equal to potential output, it is primarily because…
…we would expect that a cut in tax rates would lead to…
…when you solve it you frequently find terms like (Ir + xεεr) appearing in your calculations because…