MT3notes - A few notes for MT3 by Eli Words in quotes are...

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A few notes for MT3 by Eli. Words in quotes are taken from Abel, Bernanke, Croushore as is almost all of the information (the rest is from my head or lovely Prof. Paal) endogenous: a result of the system's forces exogenous: caused by factors from outside the system average labor productivity: “the amount of output produced per unit of labor input” classical approach: wages and prices adjust quickly, notions that free market solves many problems, gov intervention generally ineffective/harmful and should be limited. Unemployment rises in recessions due to an increase in frictional and structural unemployment. Keynesian approach: wages and prices don't adjust quickly. Gov intervention may be effective/beneficial and thus desirable. Labor hoarding: firms holding on to workers because of high costs of hiring and firing. coincident variable: peaks and troughs of variable occur at same times as peaks and troughs for the cycle M1: currency, travelers' checks, checking accounts M2: M1 + savings accounts, small denomination time deposits, MMMFs, MMDAs. money demand function: “the function that relates the real demand for money to output and the interest rate paid
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This note was uploaded on 06/09/2011 for the course ECON 320 taught by Professor Azzamonti during the Spring '08 term at University of Texas.

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MT3notes - A few notes for MT3 by Eli Words in quotes are...

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