Published in TDRI Quarterly Review Vol. 13 No. 2 June 1998, pp. 15
... temporary resource boom of the kind experienced by most oil-exporting countries in the 1970s. Those countries discovered, belatedly in most cases, that treating a boom as permanent when it is in fact temporary can have undesirable consequences. The same may now be true of Thailand. First, the declin ...
... temporary resource boom of the kind experienced by most oil-exporting countries in the 1970s. Those countries discovered, belatedly in most cases, that treating a boom as permanent when it is in fact temporary can have undesirable consequences. The same may now be true of Thailand. First, the declin ...
Miami Dade College ECO 2013 Principles of Macroeconomics
... Starting in long-run equilibrium when the aggregate demand curve is AD0 and the short-run aggregate supply curve is SRAS0, if there is a supply shock, such as a drastic increase in the price of oil, this will cause _____ and a movement to a short-run equilibrium at point _____. A) a leftward shift i ...
... Starting in long-run equilibrium when the aggregate demand curve is AD0 and the short-run aggregate supply curve is SRAS0, if there is a supply shock, such as a drastic increase in the price of oil, this will cause _____ and a movement to a short-run equilibrium at point _____. A) a leftward shift i ...
chapter 16 - Spring Branch ISD
... 30. Draw a Laffer Curve and explain the relationship it purports to portray. Why might this curve be important for macroeconomic policy? ...
... 30. Draw a Laffer Curve and explain the relationship it purports to portray. Why might this curve be important for macroeconomic policy? ...
Course Title: Macro/Micro Economics AP Course Number: 15016
... Microeconomics and Macroeconomics AP provides the student with an in-depth understanding of the principles of economics. The intent of the year-long course is to prepare the student for both the Microeconomics and Macroeconomics AP exams. This course meets all the Economics standards as prescribed b ...
... Microeconomics and Macroeconomics AP provides the student with an in-depth understanding of the principles of economics. The intent of the year-long course is to prepare the student for both the Microeconomics and Macroeconomics AP exams. This course meets all the Economics standards as prescribed b ...
Chap30
... When the market rate of interest is low, other things constant, the cost of holding money (liquidity) is low: people hold a larger fraction of their wealth in the form of money Conversely, when the market rate of interest is high, the cost of holding money is high: people hold less of their wealth ...
... When the market rate of interest is low, other things constant, the cost of holding money (liquidity) is low: people hold a larger fraction of their wealth in the form of money Conversely, when the market rate of interest is high, the cost of holding money is high: people hold less of their wealth ...
International Trade and Economic Growth
... The Solow Model and Technological Progress • The Solow growth model shows that for a given production function economic growth will eventually stop when the economy reaches its steady state. • Continued economic growth is only possible if the production function continually shifts up, which require ...
... The Solow Model and Technological Progress • The Solow growth model shows that for a given production function economic growth will eventually stop when the economy reaches its steady state. • Continued economic growth is only possible if the production function continually shifts up, which require ...
View/Open
... relatively disaggregated data are used in an index formula, then better quality products that receive higher prices are given more weight. This was the approach taken by Pardey and Craig (1996) to measure US agriculture’s productivity growth from 1949-91. The impact of research that alters output qu ...
... relatively disaggregated data are used in an index formula, then better quality products that receive higher prices are given more weight. This was the approach taken by Pardey and Craig (1996) to measure US agriculture’s productivity growth from 1949-91. The impact of research that alters output qu ...
consumer spending
... – Durability (capital durable; businesses can choose to get rid of capital, fix capital to last few years, etc.) – Irregularity of Innovation (does not happen too often; when it does, surge in investment but then levels off) – Variability of Profits (affects incentives to invest) – Variability of Ex ...
... – Durability (capital durable; businesses can choose to get rid of capital, fix capital to last few years, etc.) – Irregularity of Innovation (does not happen too often; when it does, surge in investment but then levels off) – Variability of Profits (affects incentives to invest) – Variability of Ex ...
Schumpeter Meeting Keynes: A Policy-Friendly Model of
... its impact throughout the economy via both the lowering of the production costs of such equipment and its diffusion in the “downstream” consumption-good sector. Before accurately describing the model, we briefly provide the timeline of events occurring in each time step. ...
... its impact throughout the economy via both the lowering of the production costs of such equipment and its diffusion in the “downstream” consumption-good sector. Before accurately describing the model, we briefly provide the timeline of events occurring in each time step. ...
Macroeconomic equilibrium
... of P. As noted in the previous chapter, aggregate supply can be perfectly elastic because of the existence of spare capacity, with high levels of unused factors of production such as unemployed workers and/or underutilized capital. It is important to observe that in this case, the equilibrium level ...
... of P. As noted in the previous chapter, aggregate supply can be perfectly elastic because of the existence of spare capacity, with high levels of unused factors of production such as unemployed workers and/or underutilized capital. It is important to observe that in this case, the equilibrium level ...
Schumpeter Meeting Keynes: A Policy
... its impact throughout the economy via both the lowering of the production costs of such equipment and its diffusion in the “downstream” consumption-good sector. Before accurately describing the model, we briefly provide the timeline of events occurring in each time step. ...
... its impact throughout the economy via both the lowering of the production costs of such equipment and its diffusion in the “downstream” consumption-good sector. Before accurately describing the model, we briefly provide the timeline of events occurring in each time step. ...
chap013Answers
... slowly because of the relative abundance of available inputs. Additional resources are easily brought into production, as the suppliers of these resources (especially labor) are anxious to employ them and are happy to accept current prices. To the right of full-employment output the curve is relativ ...
... slowly because of the relative abundance of available inputs. Additional resources are easily brought into production, as the suppliers of these resources (especially labor) are anxious to employ them and are happy to accept current prices. To the right of full-employment output the curve is relativ ...
AS Curve
... The curve slopes upwards, but the slope varies along its length. The slope is important because it directly affects output: a flat curve would allow output to increase without cost, whilst a vertical curve would mean that it is almost impossible to increase output. As can be seen from Fig. (v), the ...
... The curve slopes upwards, but the slope varies along its length. The slope is important because it directly affects output: a flat curve would allow output to increase without cost, whilst a vertical curve would mean that it is almost impossible to increase output. As can be seen from Fig. (v), the ...
Economic Projections Contents September 1997
... The Reserve Bank now views 725 as the appropriate level for the Monetary Conditions Index (MCI), down from the 825 level set in the June Monetary Policy Statement. This is in line with the conditions applying in financial markets over recent weeks. The new, lower, level for the MCI is justified by o ...
... The Reserve Bank now views 725 as the appropriate level for the Monetary Conditions Index (MCI), down from the 825 level set in the June Monetary Policy Statement. This is in line with the conditions applying in financial markets over recent weeks. The new, lower, level for the MCI is justified by o ...
Chapter 10 - The Citadel
... increases aggregate spending (on domestic goods) shifts AD to the right. Any non-price-level change that decreases aggregate spending (on domestic goods) shifts AD to the left. ...
... increases aggregate spending (on domestic goods) shifts AD to the right. Any non-price-level change that decreases aggregate spending (on domestic goods) shifts AD to the left. ...
macroeconomics with non-perfect competition: tax cuts and wage
... firm. The higher the elasticity of labour supply, and the lower the elasticity of marginal cost ( i e . , the less upward-sloping the marginal cost curve), the smaller is X. If both curves are horizontal, then X = 0. As indicated byeq. (18) and (21), the smaller is Xthe greater may be the output eff ...
... firm. The higher the elasticity of labour supply, and the lower the elasticity of marginal cost ( i e . , the less upward-sloping the marginal cost curve), the smaller is X. If both curves are horizontal, then X = 0. As indicated byeq. (18) and (21), the smaller is Xthe greater may be the output eff ...
Chapter 3: The Goods Market
... How Long Does It Take for Output to Adjust? Describing formally the adjustment of output over time is what economists call the dynamics of adjustment. Suppose that firms make decisions about their production levels at the beginning of each quarter. ...
... How Long Does It Take for Output to Adjust? Describing formally the adjustment of output over time is what economists call the dynamics of adjustment. Suppose that firms make decisions about their production levels at the beginning of each quarter. ...
Document
... How Long Does It Take for Output to Adjust? Describing formally the adjustment of output over time is what economists call the dynamics of adjustment. Suppose that firms make decisions about their production levels at the beginning of each quarter. ...
... How Long Does It Take for Output to Adjust? Describing formally the adjustment of output over time is what economists call the dynamics of adjustment. Suppose that firms make decisions about their production levels at the beginning of each quarter. ...
NCEA Level 2 Economics (91224) 2013 Assessment Schedule
... profits / income / returns on investment, so investment will increase, resulting in greater AD / productive capacity so more produced. Must give a valid reason for investment increasing. (iii) Detailed explanation of why the combined impact will be a decrease in growth, as the negative effect of our ...
... profits / income / returns on investment, so investment will increase, resulting in greater AD / productive capacity so more produced. Must give a valid reason for investment increasing. (iii) Detailed explanation of why the combined impact will be a decrease in growth, as the negative effect of our ...
Chapter 9 - University of Alberta
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
Chapter 9 - University of Alberta
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
... • After the interest rate drops the aggregate demand for goods rises. • Assume that firm respond by increasing production leading to a higher output in the short-run equilibrium. ...
Chapter 9
... U.S. states than in some European nations? These states have experienced a higher rate of ...
... U.S. states than in some European nations? These states have experienced a higher rate of ...
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.