![Chapter 18 Practice Quiz](http://s1.studyres.com/store/data/010224415_1-1dfb9ed7255f0566a1fbcc6dcb866439-300x300.png)
Chapter 18 Practice Quiz
... 6. Which of the following changes produces an upward shift in the consumption function? a. An increase in consumer wealth b. A decrease in consumer wealth c. A decrease in autonomous consumption d. Both (b) and (c) ANS: a. An increase in wealth makes consumers feel more financially secure and they s ...
... 6. Which of the following changes produces an upward shift in the consumption function? a. An increase in consumer wealth b. A decrease in consumer wealth c. A decrease in autonomous consumption d. Both (b) and (c) ANS: a. An increase in wealth makes consumers feel more financially secure and they s ...
GDP
... Consumer goods include durable goods, goods that last for a relatively long time like refrigerators, and nondurable goods, or goods that last a short period of time, like food and light bulbs. Go To Section: ...
... Consumer goods include durable goods, goods that last for a relatively long time like refrigerators, and nondurable goods, or goods that last a short period of time, like food and light bulbs. Go To Section: ...
The influence of monetary on aggregate demand (short run)
... surplus of money puts downward pressure on the interest rate. Conversely, if the interest rate is below the equilibrium level (such as at r2), the quantity of money people want to hold (Md2) is greater than the quantity the Fed has created, and this shortage of money puts upward pressure on the inte ...
... surplus of money puts downward pressure on the interest rate. Conversely, if the interest rate is below the equilibrium level (such as at r2), the quantity of money people want to hold (Md2) is greater than the quantity the Fed has created, and this shortage of money puts upward pressure on the inte ...
The demand for currency in Malta
... In traditional classical theories like Fisher’s quantity theory,3 money does not have any intrinsic utility and serves only as a means of facilitating exchange. The quantity of money is related to the volume of transactions multiplied by the price level of goods and services traded by means of the v ...
... In traditional classical theories like Fisher’s quantity theory,3 money does not have any intrinsic utility and serves only as a means of facilitating exchange. The quantity of money is related to the volume of transactions multiplied by the price level of goods and services traded by means of the v ...
File
... better off pursuing outward-oriented (as opposed to inward-oriented) policies that integrate these countries into the world economy. Countries that eliminate trade restrictions often experienced the same kind of economic growth that would occur after a major technological advance. Trade volume i ...
... better off pursuing outward-oriented (as opposed to inward-oriented) policies that integrate these countries into the world economy. Countries that eliminate trade restrictions often experienced the same kind of economic growth that would occur after a major technological advance. Trade volume i ...
Sticky wages and prices
... wage will have been set too low and so inflation will be higher than expected and the real wage will have fallen. Because the real wage will have fallen, firms recruit more labour and so produce more output. Therefore positive money supply shocks are associated with higher output. However, because o ...
... wage will have been set too low and so inflation will be higher than expected and the real wage will have fallen. Because the real wage will have fallen, firms recruit more labour and so produce more output. Therefore positive money supply shocks are associated with higher output. However, because o ...
ICT is Closely Related to Economic Growth
... Growth rate of ICT investment (%; average for the period 1988-2004) ...
... Growth rate of ICT investment (%; average for the period 1988-2004) ...
The petroleum sector and the Norwegian economy
... Norwegian context, the assumption of a given supply of labour does not appear to be particularly accurate. Since the EU enlargement in 2004, total net migration to Norway has been nearly 400 000 persons. As long as higher wages are necessary to increase the total supply of labour, the general conclu ...
... Norwegian context, the assumption of a given supply of labour does not appear to be particularly accurate. Since the EU enlargement in 2004, total net migration to Norway has been nearly 400 000 persons. As long as higher wages are necessary to increase the total supply of labour, the general conclu ...
Global Slowdown - Harvard Kennedy School
... Trade always used to grow faster than GDP -- about twice as rapidly. World Trade & Real GDP, 1980 – 2014 (2010 = 100) ...
... Trade always used to grow faster than GDP -- about twice as rapidly. World Trade & Real GDP, 1980 – 2014 (2010 = 100) ...
What Is an Economy? - Doral Academy Preparatory
... available economic resources is scarcity. Economic resources are all the things used in producing goods and services. They include land, labor, capital, and entrepreneurship. A nation must choose how to use those resources to produce and distribute the goods and services for its people. Countries ha ...
... available economic resources is scarcity. Economic resources are all the things used in producing goods and services. They include land, labor, capital, and entrepreneurship. A nation must choose how to use those resources to produce and distribute the goods and services for its people. Countries ha ...
Chapter 28: Long-Run Growth
... increases in the quantity of inputs can be explained only by an increase in the productivity of those inputs. • The productivity of an input is the amount produced per unit of an input. • Factors that affect the productivity of an input include technological change, other advances in knowledge, and ...
... increases in the quantity of inputs can be explained only by an increase in the productivity of those inputs. • The productivity of an input is the amount produced per unit of an input. • Factors that affect the productivity of an input include technological change, other advances in knowledge, and ...
Unit 6 Income Determination in a Simple Keynesian Macroeconomic
... Classical theory was the only economic theory during the first part of the twentieth century. The classical economists believed in the laissez-faire approach, which means leave the market alone. This policy was based on the view that the economy should be left to itself and it will return to full em ...
... Classical theory was the only economic theory during the first part of the twentieth century. The classical economists believed in the laissez-faire approach, which means leave the market alone. This policy was based on the view that the economy should be left to itself and it will return to full em ...
Working Paper No. 514 The Continuing Legacy of John Maynard
... but not spent means—in the first instance, at least—accumulation of money balances. Returning specifically to the entrepreneurial decision, an alternative to producing is to accumulate (again, at least initially) money balances. When entrepreneurial expectations about revenues from production are lo ...
... but not spent means—in the first instance, at least—accumulation of money balances. Returning specifically to the entrepreneurial decision, an alternative to producing is to accumulate (again, at least initially) money balances. When entrepreneurial expectations about revenues from production are lo ...
Unit 6 Income Determination in a Simple Keynesian Macroeconomic
... Classical theory was the only economic theory during the first part of the twentieth century. The classical economists believed in the laissez-faire approach, which means leave the market alone. This policy was based on the view that the economy should be left to itself and it will return to full em ...
... Classical theory was the only economic theory during the first part of the twentieth century. The classical economists believed in the laissez-faire approach, which means leave the market alone. This policy was based on the view that the economy should be left to itself and it will return to full em ...
Chapter 3: National Income: Where it p Comes From and Where it
... financial intermediaries, e.g. banks, insurance companies, mutual funds, where savers indirectly provide funds to firms for investment CHAPTER 3 ...
... financial intermediaries, e.g. banks, insurance companies, mutual funds, where savers indirectly provide funds to firms for investment CHAPTER 3 ...
Finance-dominated capitalism in Germany
... dominated by a high income elasticity and dynamic world demand. In what follows we will argue that the second channel seems to have been the more important one. Contrary to public and political opinion before the financial and economic crises, this German ‘export-led mercantilist’ model was as fragi ...
... dominated by a high income elasticity and dynamic world demand. In what follows we will argue that the second channel seems to have been the more important one. Contrary to public and political opinion before the financial and economic crises, this German ‘export-led mercantilist’ model was as fragi ...
Ch 10
... desire more foreign-made goods (i.e., net exports fall) – Equivalent to a reduction in the amount of real goods and services purchased in the U.S. ...
... desire more foreign-made goods (i.e., net exports fall) – Equivalent to a reduction in the amount of real goods and services purchased in the U.S. ...
The IS curve.
... Mercantilists believed that the volume of trade was limited. If any country expanded its trade it would be at the expense of other countries. It was a zero-sum game. Thus, a state wanted both to expand its own exports and at the same time limit imports from other countries. The assumption that the v ...
... Mercantilists believed that the volume of trade was limited. If any country expanded its trade it would be at the expense of other countries. It was a zero-sum game. Thus, a state wanted both to expand its own exports and at the same time limit imports from other countries. The assumption that the v ...
Econ 20B- Additional Problem Set I. MULTIPLE CHOICES. Choose
... 2. Describe the process in the money market by which the interest rate reaches its equilibrium value if it starts above equilibrium. ANS: If the interest rate is above equilibrium, there is an excess supply of money. People with more money than they want to hold given the current interest rate depos ...
... 2. Describe the process in the money market by which the interest rate reaches its equilibrium value if it starts above equilibrium. ANS: If the interest rate is above equilibrium, there is an excess supply of money. People with more money than they want to hold given the current interest rate depos ...
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.