chapter14 - University of San Diego Home Pages
... balance if output rises relative to domestic absorption If an economy is operating below capacity, a devaluation will shift resources into export production and encourage spending on import substitutes If an economy is operating at full employment, production cannot rise; trade balance can only ...
... balance if output rises relative to domestic absorption If an economy is operating below capacity, a devaluation will shift resources into export production and encourage spending on import substitutes If an economy is operating at full employment, production cannot rise; trade balance can only ...
Chapter 19. The Goods Market in an Open Economy
... we are assuming the economy is open, how should we modify our earlier descriptions of consumption, investment, and government spending? The answer: Not very much, if at all. How much consumers decide to spend still depends on their income and their wealth. While the real exchange rate surely affects ...
... we are assuming the economy is open, how should we modify our earlier descriptions of consumption, investment, and government spending? The answer: Not very much, if at all. How much consumers decide to spend still depends on their income and their wealth. While the real exchange rate surely affects ...
Chapter_25_26
... Fiscal and monetary policies affect the short run level of GDP because they alter the level of aggregate demand. But unless they are able to affect the level of potential output, they will have no effect on long-run GDP. • broad consensus that monetary policy has only limited ...
... Fiscal and monetary policies affect the short run level of GDP because they alter the level of aggregate demand. But unless they are able to affect the level of potential output, they will have no effect on long-run GDP. • broad consensus that monetary policy has only limited ...
THREE ESSAYS ON SUSTAINABLE DEVELOPMENT by ANDRES
... arises when there is an exhaustible resource that the current generation may be using too fast. Hartwick (1977) showed that, in a model with similar assumptions to Solow (1974), investing the rents accruing from resource extraction in other types of capital is sufficient to maintain a constant consu ...
... arises when there is an exhaustible resource that the current generation may be using too fast. Hartwick (1977) showed that, in a model with similar assumptions to Solow (1974), investing the rents accruing from resource extraction in other types of capital is sufficient to maintain a constant consu ...
answer key - U of L Personal Web Sites
... 38. If a family's expenditures increase from $25,000 to $30,000 per year when its income increases from $30,000 to $37,500, its autonomous expenditures A) do not change. B) equal $5,000. C) increase by $7,500. D) change by an amount that cannot be determined without more information. Ans: A 39. The ...
... 38. If a family's expenditures increase from $25,000 to $30,000 per year when its income increases from $30,000 to $37,500, its autonomous expenditures A) do not change. B) equal $5,000. C) increase by $7,500. D) change by an amount that cannot be determined without more information. Ans: A 39. The ...
Government report - World Trade Organization
... Since the approval of the 2003 budget, economic conditions have deteriorated, notably the continuous depreciation of the exchange rate, increases in world oil prices and acceleration of domestic inflation. These factors put additional pressure on the spending and require a monetary policy response, ...
... Since the approval of the 2003 budget, economic conditions have deteriorated, notably the continuous depreciation of the exchange rate, increases in world oil prices and acceleration of domestic inflation. These factors put additional pressure on the spending and require a monetary policy response, ...
Multipliers and output models in regional economics
... the labour market and the supply of output to meet regional and world demand. 2. Wage rate is determined within the region as labour market tightens 3. Increased regional wage rates induces further supply of labour (participation and migration) 4. Increased regional wage rates reduce ...
... the labour market and the supply of output to meet regional and world demand. 2. Wage rate is determined within the region as labour market tightens 3. Increased regional wage rates induces further supply of labour (participation and migration) 4. Increased regional wage rates reduce ...
The Labor Productivity Puzzle - Federal Reserve Bank of Minneapolis
... Intangible capital is accumulated know-how from investing in research and development, brands, and organizations, which is for the most part expensed by companies rather than capitalized. Because it is expensed, it is not included in measures of business value added and thus is not included in GDP. ...
... Intangible capital is accumulated know-how from investing in research and development, brands, and organizations, which is for the most part expensed by companies rather than capitalized. Because it is expensed, it is not included in measures of business value added and thus is not included in GDP. ...
price ceiling
... A tax increases the costs faced by producers. The amount of the tax is shown by the vertical distance between the two supply curves. Because of the tax, less can be supplied at each price level. The result is an increase in the market price and a contraction in demand to a new equilibrium output of ...
... A tax increases the costs faced by producers. The amount of the tax is shown by the vertical distance between the two supply curves. Because of the tax, less can be supplied at each price level. The result is an increase in the market price and a contraction in demand to a new equilibrium output of ...
HOTS - Kendriya Vidyalaya No.1 Alwar
... 4. Problem related to the efficient use and fuller utilization of resources Efficiency of production means the maximum possible amounts of goods and services are being produced with available resources. The resources are already scare in relation to the need for them and therefore an economy has to ...
... 4. Problem related to the efficient use and fuller utilization of resources Efficiency of production means the maximum possible amounts of goods and services are being produced with available resources. The resources are already scare in relation to the need for them and therefore an economy has to ...
Mankiw 5/e Chapter 11: Aggregate Demand II
... obtain financing for investment 3. Contractionary fiscal policy ...
... obtain financing for investment 3. Contractionary fiscal policy ...
Keynes`s Theory of Depression
... increased, and partly because, as a rule, pressure on the facilities for producing that type of capital will cause its supply price to increase . . . .” (p. 136) What this means is that firms face simultaneously lower selling prices and rising costs. More net investment leads to lower selling prices ...
... increased, and partly because, as a rule, pressure on the facilities for producing that type of capital will cause its supply price to increase . . . .” (p. 136) What this means is that firms face simultaneously lower selling prices and rising costs. More net investment leads to lower selling prices ...
Chapter 9: Introduction to Business Cycles
... nominal spending affect the level of prices (but not the level of production)--in the long run. But when does the "long run" arrive? Do we change from living in the short run of chapters 7 forward to the long run of chapter 6 on June 19, 2005? Clearly not. The long run is an analytical construct. A ...
... nominal spending affect the level of prices (but not the level of production)--in the long run. But when does the "long run" arrive? Do we change from living in the short run of chapters 7 forward to the long run of chapter 6 on June 19, 2005? Clearly not. The long run is an analytical construct. A ...
Answers to Practice Questions
... is increased so is the opportunity cost of each new caught fish. c. The curve bows out to the right, reflecting the law of increasing opportunity costs. d. Besides the assumption that only two goods are produced, we must assume that the quantity of the castaway's resources and the technology he uses ...
... is increased so is the opportunity cost of each new caught fish. c. The curve bows out to the right, reflecting the law of increasing opportunity costs. d. Besides the assumption that only two goods are produced, we must assume that the quantity of the castaway's resources and the technology he uses ...
innovation in catching-up countries in the eu
... the 1990s, and computer and related services more recently. These two sectors represent 35 % of total BERD in 2004 (compared to 25% in 1995). ...
... the 1990s, and computer and related services more recently. These two sectors represent 35 % of total BERD in 2004 (compared to 25% in 1995). ...
In the next section we describe recent economic developments
... independence (Schuberth and Wehinger, 1998; Bean, 1992; Calmfors, 2001). The magnitude of this loss depends on how well individual countries were conducting monetary policy prior to joining the currency union. But in order to reap the maximum benefits and minimize costs, there ought to be a sufficie ...
... independence (Schuberth and Wehinger, 1998; Bean, 1992; Calmfors, 2001). The magnitude of this loss depends on how well individual countries were conducting monetary policy prior to joining the currency union. But in order to reap the maximum benefits and minimize costs, there ought to be a sufficie ...
A THEORETICAL GLANCE AT MILITARY EXPENDITURES
... the military expenditures do not go beyond the reform line which the capitalists may possibly approve. According to this mechanism of Keynes (1940), first of all, the state does not negotiate itself in areas where the capitalists can make profit. Aside from substituting for private sector expenditur ...
... the military expenditures do not go beyond the reform line which the capitalists may possibly approve. According to this mechanism of Keynes (1940), first of all, the state does not negotiate itself in areas where the capitalists can make profit. Aside from substituting for private sector expenditur ...
Working Paper - Hans-Böckler
... characterised by a variable rate of capacity utilisation in the long run. Income distribution is determined by firms’ mark-up pricing in incompletely competitive goods markets and is hence mainly affected by the degree of competition in the goods market and by relative powers of firms and workers in ...
... characterised by a variable rate of capacity utilisation in the long run. Income distribution is determined by firms’ mark-up pricing in incompletely competitive goods markets and is hence mainly affected by the degree of competition in the goods market and by relative powers of firms and workers in ...
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.