Search results
Results from the WOW.Com Content Network
The calculation for the output gap is (Y–Y*)/Y* where Y is actual output and Y* is potential output. If this calculation yields a positive number it is called an inflationary gap and indicates the growth of aggregate demand is outpacing the growth of aggregate supply—possibly creating inflation; if the calculation yields a negative number it is called a recessionary gap—possibly ...
Chapter 20 covers some mathematical ground needed for Chapter 21. Chapter 21 considers the question of how a change in income resulting from an increase in money supply will be apportioned between wages, prices, employment and profits. (The results also depend on the exogenous behaviour of the workforce and on the shapes of various functions.)
The introduction of inflationary expectations into the equation implies that actual inflation can feed back into inflationary expectations and thus cause further inflation. The late economist James Tobin dubbed the last term "inflationary inertia", because in the current period, inflation exists which represents an inflationary impulse left ...
The Organisation for Economic Co-operation and Development (OECD) defines a recession as a period of at least two years during which the cumulative output gap reaches at least 2% of GDP, and the output gap is at least 1% for at least one year. [23] Recession can be defined as decline of GDP per capita instead of decline of total GDP. [24]
Keynes's admission of income as an influence on the demand for money is a step back in the direction of classical theory, and Hicks takes a further step in the same direction by generalizing the propensity to save to take both Y and r as arguments. Less classically he extends this generalization to the schedule of the marginal efficiency of ...
JPMorgan downgraded Dollar General stock Wednesday, noting that the value retailer's low-income shopper is “acting recessionary. ” The bank's analysts cut their recommendation from Neutral to ...
In real societies people can be distinguished by their different resources, with the resources being incomes. The more "distinguishable" they are, the lower is the "actual entropy" of a system consisting of income and income earners. Also based on information theory, the gap between these two entropies can be called "redundancy". [23]
The AD–AS or aggregate demand–aggregate supply model (also known as the aggregate supply–aggregate demand or AS–AD model) is a widely used macroeconomic model that explains short-run and long-run economic changes through the relationship of aggregate demand (AD) and aggregate supply (AS) in a diagram.