In finance and economics, nominal may also refer to an unadjusted rate or the change in value. When defining items like the gross domestic product (GDP) or interest rates, nominal points to a figure that is unadjusted forseasonality, inflation, interestcompounding, and other modifiers. In this ...
Menu costs, then, are the costs to a firm of changing nominal prices in general. Every time a firm raises or cuts the prices it charges, it faces a substantial financial outlay. Another aspect of menu costs is that prices must go up in line with inflation. Thus, menu costs are unavoid...
What is the definition of "pricing policy" in economics? Define or describe the following term: Microeconomics. Explain the meaning of the term substitution effect as used in economics. In economics, explain the term "economies of scale". In economics, explain the term "nomina...
Gibbs sampling in combination with data augmentation allows inference in statistical/econometric models with many unobserved variables. The likelihood functions of these models may contain many integrals, which often makes a standard classical analysis difficult or even unfeasible. The advantage of the ...
Economic models are condensed examples of economic properties that are used to analyze and predict economic variables. Explore models of microeconomics, and note where these models fail in predicting all influential variables. Related to this Question ...
These breaks tend to be associated more often to breaks in the mean of nominal variables than to the one of real variables, which reinforces the view that they are monetary phenomena. We also show that ignoring breaks in the mean of inflation clearly lead to overrate inflation persistence in...
rich. Butif their association with the Kremlin confines them to only doing business in Russia, Putin’s patronage could become a problem they want to get away from, which would weaken Putin.Most of the oligarchs have assets and business interests outside of Russia, which means they are ...
Sure, the Fed could adopt a very tight monetary policy (as in 2008 or 1930) and NGDP would fall, reducing output in almost all sectors. But why would they want to do that? And if they did do that then nominal interest rates would not rise, they would fall close to zero, just as ...
We often remind investors that economics and markets typically have a bigger impact on elections than the other way around. That may again be seen in election outcomes this year given the lingering voter dissatisfaction with the economic and inflation environment. But there are periods when elections...
Together, these are used to cost a ‘typical’ bundle of goods aligned to the chosen basic needs welfare threshold in different locales. As such, while the nominal value of the poverty line may vary, the underlying concept of poverty – namely, deficient purchasing power in relation to a ...