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Lecture 15: AD-AS
... Firms set sticky prices in advance based on expected prices PE. If prices are unexpectedly high, then the firm’s good is relatively cheap Hence, people buy a lot of it, increasing GDP ...
... Firms set sticky prices in advance based on expected prices PE. If prices are unexpectedly high, then the firm’s good is relatively cheap Hence, people buy a lot of it, increasing GDP ...
FROM “HINDU GROWTH” TO PRODUCTIVITY - Hussonet
... consequence of re-allocation of resources from low-productivity (agriculture) to higher productivity (manufacturing and services) or was there a trend improvement in the performance of individual sectors? There has been a substantial structural change in the composition of the labor force employed i ...
... consequence of re-allocation of resources from low-productivity (agriculture) to higher productivity (manufacturing and services) or was there a trend improvement in the performance of individual sectors? There has been a substantial structural change in the composition of the labor force employed i ...
vsi11 ec Fiaschi 16151107 en
... given a sufficiently high level of investment rate, the economy without conflict would grow in the long run. But the waste of resources caused by the social conflict can generate a poverty trap, i.e. countries with a low initial level of capital can be trapped in a low-income equilibrium. The long-r ...
... given a sufficiently high level of investment rate, the economy without conflict would grow in the long run. But the waste of resources caused by the social conflict can generate a poverty trap, i.e. countries with a low initial level of capital can be trapped in a low-income equilibrium. The long-r ...
Topic 5 Money & Investment HO
... That is, the demand for money depends on the level of real income and the NOMINAL interest rate Why Nominal? Because lose R on all money held ...
... That is, the demand for money depends on the level of real income and the NOMINAL interest rate Why Nominal? Because lose R on all money held ...
NBER WORKING PAPER SERIES SCHUMPETERIAN PROFITS IN THE AMERICAN ECONOMY:
... to have been largely labor saving.2 More recently, theories of induced technological change were revived as the new growth theory, pioneered by Robert Lucas and Paul Romer.3 This has blossomed into a major research field, with a wide variety of theories and applications.4 ...
... to have been largely labor saving.2 More recently, theories of induced technological change were revived as the new growth theory, pioneered by Robert Lucas and Paul Romer.3 This has blossomed into a major research field, with a wide variety of theories and applications.4 ...
CHAPTER 20 ADVANCED TOPICS Chapter Outline An Overview of
... One misconception that students often have is that people always make correct forecasts if they have rational expectations. Therefore, it is important to point out that while people use all information available to them, they are still prone to making errors, although not systematic ones. There are ...
... One misconception that students often have is that people always make correct forecasts if they have rational expectations. Therefore, it is important to point out that while people use all information available to them, they are still prone to making errors, although not systematic ones. There are ...
the influence of the economic growth slowdown on the demand of
... which affected the rates of new vehicles' sales. Higher consumer income in 2007 and 2008 resulted from ri¬ sing real GDP per capita thus leading to more income elastic demand. Average household disposable income in 2007 was LTL 859 average per capita per month while average consumption expenditure i ...
... which affected the rates of new vehicles' sales. Higher consumer income in 2007 and 2008 resulted from ri¬ sing real GDP per capita thus leading to more income elastic demand. Average household disposable income in 2007 was LTL 859 average per capita per month while average consumption expenditure i ...
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... Effects of Economic Factors on Adoption of Robotics and Consequences of Automation for Productivity Growth of Dairy Farms Anna-Maija Heikkilä, Sami Myyrä and Kyösti Pietola* Factor Markets Working Paper No. 32/December 2012 ...
... Effects of Economic Factors on Adoption of Robotics and Consequences of Automation for Productivity Growth of Dairy Farms Anna-Maija Heikkilä, Sami Myyrä and Kyösti Pietola* Factor Markets Working Paper No. 32/December 2012 ...
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... last decade. A great majority of this reduction is a result the Brazilian Interest Rate Equalization System (IRES). About 30% of the total loans available to farmers by the Brazilian Central Bank are impacted by IRES. Losses to banks that lend at below market interest rates to IRES qualified agricul ...
... last decade. A great majority of this reduction is a result the Brazilian Interest Rate Equalization System (IRES). About 30% of the total loans available to farmers by the Brazilian Central Bank are impacted by IRES. Losses to banks that lend at below market interest rates to IRES qualified agricul ...
Tilburg University Economic growth, liberalization
... are traded in factor markets. Prices match demand and supply and provide consumers and suppliers with information and incentives. Population growth, for example, raises the potential working force and the supply of labor inputs in the economy rises. This fuels growth if wages adjust so that the gro ...
... are traded in factor markets. Prices match demand and supply and provide consumers and suppliers with information and incentives. Population growth, for example, raises the potential working force and the supply of labor inputs in the economy rises. This fuels growth if wages adjust so that the gro ...
The Circular Flow of Income and Expenditure
... services, are subtracted from tax revenue to get the leakage “net taxes.” The sum of government purchases of goods and services plus transfer payments is called government expenditures or, sometimes, government outlays. The second injection is investment. Investment, as the term is understood in mac ...
... services, are subtracted from tax revenue to get the leakage “net taxes.” The sum of government purchases of goods and services plus transfer payments is called government expenditures or, sometimes, government outlays. The second injection is investment. Investment, as the term is understood in mac ...
Housework and fiscal expansions
... the marginal productivity of labor in the non-market sector. Similarly, equation (13) requires that the marginal rate of substitution between the two consumption goods is equal to the ratio of returns to capital in the two sectors. Finally, two conventional Euler equations are required for the alloc ...
... the marginal productivity of labor in the non-market sector. Similarly, equation (13) requires that the marginal rate of substitution between the two consumption goods is equal to the ratio of returns to capital in the two sectors. Finally, two conventional Euler equations are required for the alloc ...
View/Open
... percent in 2000), which indicates a low value-addition in the RMG sector. Bangladesh imports raw materials for the RMG from countries, such as India, China and Thailand under the back-to-back L/C facilities. It is projected that under a quota free regime these countries will prefer to substitute the ...
... percent in 2000), which indicates a low value-addition in the RMG sector. Bangladesh imports raw materials for the RMG from countries, such as India, China and Thailand under the back-to-back L/C facilities. It is projected that under a quota free regime these countries will prefer to substitute the ...
The IS-LM/AD-AS Model: A General Framework for Macroeconomic
... – An increase in the growth rate of money relative to the growth rate of inflation. ...
... – An increase in the growth rate of money relative to the growth rate of inflation. ...
The Development of Informal Employment During the Financial
... in the output elasticity of electricity consumption coefficient calculation results, the results for the 2003 was 0.68, with the economic results are more reasonable, in 2004 to 2006 expected to be 0.85. In addition, Cixi City, a relatively developed economy, the economic structure compared to other ...
... in the output elasticity of electricity consumption coefficient calculation results, the results for the 2003 was 0.68, with the economic results are more reasonable, in 2004 to 2006 expected to be 0.85. In addition, Cixi City, a relatively developed economy, the economic structure compared to other ...
chapter 9: lecture notes
... 1. The model can account for demand-pull inflation, but it does not indicate the extent of inflation when there is an inflationary gap. It doesn’t measure inflation. 2. It doesn’t explain how inflation can occur before the economy reaches full employment (premature demand-pull inflation). 3. It does ...
... 1. The model can account for demand-pull inflation, but it does not indicate the extent of inflation when there is an inflationary gap. It doesn’t measure inflation. 2. It doesn’t explain how inflation can occur before the economy reaches full employment (premature demand-pull inflation). 3. It does ...
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... introduced the National Agricultural Policy (NAP) plan in 1982, which encouraged private investment in large-scale farming (Eriksson, 1991). The World Bank and IMF supported the government in launching the Economic Recovery Programme (ERP) in 1986. Step by step, the Tanzanian economy was supposed to ...
... introduced the National Agricultural Policy (NAP) plan in 1982, which encouraged private investment in large-scale farming (Eriksson, 1991). The World Bank and IMF supported the government in launching the Economic Recovery Programme (ERP) in 1986. Step by step, the Tanzanian economy was supposed to ...
A Two-Sector Approach to Modeling US NIPA Data
... output. This section develops, and empirically calibrates, a simple two-sector model that fits the facts just described by allowing for a faster pace of technological progress in the sector producing durable goods.6 The model presented here shares a number of common features with that of Greenwood, ...
... output. This section develops, and empirically calibrates, a simple two-sector model that fits the facts just described by allowing for a faster pace of technological progress in the sector producing durable goods.6 The model presented here shares a number of common features with that of Greenwood, ...
sq-macro-S`98
... 6. For Smith what were the appropriate roles of government? 7. Define and give an example of opportunity cost. 8. Distinguish between microeconomics and macroeconomics. 9. For what two reasons do economists tend to favor markets? Critique, as we did in class, the idea that trade always is mutually b ...
... 6. For Smith what were the appropriate roles of government? 7. Define and give an example of opportunity cost. 8. Distinguish between microeconomics and macroeconomics. 9. For what two reasons do economists tend to favor markets? Critique, as we did in class, the idea that trade always is mutually b ...
Mankiw 5/e Chapter 6: Unemployment
... if we increase our saving rate, we will have faster growth until we get to a new steady state with higher consumption per capita. slide 13 ...
... if we increase our saving rate, we will have faster growth until we get to a new steady state with higher consumption per capita. slide 13 ...
Chapter 5 CONVERGENCE IN THE NEOCLASSICAL MODEL
... absolute convergence applies exclusively to economies with identical structural parameters, which are will display the same level of per capita income in the long run. So, for example, if the population growth rate n is higher in a country than in another one, then according to equations (5.3) and ( ...
... absolute convergence applies exclusively to economies with identical structural parameters, which are will display the same level of per capita income in the long run. So, for example, if the population growth rate n is higher in a country than in another one, then according to equations (5.3) and ( ...
Review Questions Aggregate Demand and Aggregate Supply
... The misperceptions theory of the short-run aggregate supply curve says that output supplied will increase if the price level a. increases less than expected so that firms believe the relative price of their output has increased. b. increases less than expected so that firms believe the relative pric ...
... The misperceptions theory of the short-run aggregate supply curve says that output supplied will increase if the price level a. increases less than expected so that firms believe the relative price of their output has increased. b. increases less than expected so that firms believe the relative pric ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.