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ECONOMIES OF SCALE
... analyze but add little of real importance to the understanding of the world economy beyond what can be derived from models without scale economies at all. It is the possibility of factor-price equalization and (especially) Graham equilibria that produce the real value added that can come from consid ...
... analyze but add little of real importance to the understanding of the world economy beyond what can be derived from models without scale economies at all. It is the possibility of factor-price equalization and (especially) Graham equilibria that produce the real value added that can come from consid ...
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... endogenous. \fages are assumed to be fixed nominally, given the noneconomic mechanisms of class conflict. Further, given a priori rules for mark-up determination, the level of producer prices becomes an endogenous variable which responds to pressures of aggregate final demand. Consequently, the mode ...
... endogenous. \fages are assumed to be fixed nominally, given the noneconomic mechanisms of class conflict. Further, given a priori rules for mark-up determination, the level of producer prices becomes an endogenous variable which responds to pressures of aggregate final demand. Consequently, the mode ...
An historic investment plan
... infrastructure, we will also use more innovative methods of alternative financing. We will establish the Canada Infrastructure Bank (CIB) to provide low-cost financing to build new infrastructure projects. This new CIB will work in partnership with other orders of governments and Canada’s financial com ...
... infrastructure, we will also use more innovative methods of alternative financing. We will establish the Canada Infrastructure Bank (CIB) to provide low-cost financing to build new infrastructure projects. This new CIB will work in partnership with other orders of governments and Canada’s financial com ...
View/Open
... Figure 1. Linkages and leakages in a local economy The extent of these gains, however, is limited by ‘leakages’, also shown in Figure 1. If local consumers use their extra income to buy tradables then there is reduced stimulus to local demand. Even with such a stimulus, if local producers cannot res ...
... Figure 1. Linkages and leakages in a local economy The extent of these gains, however, is limited by ‘leakages’, also shown in Figure 1. If local consumers use their extra income to buy tradables then there is reduced stimulus to local demand. Even with such a stimulus, if local producers cannot res ...
REGIONAL MODELLING
... it is assumed that the economy-wide input/output coefficients relating to commodity supply and industry costs apply at the regional level ...
... it is assumed that the economy-wide input/output coefficients relating to commodity supply and industry costs apply at the regional level ...
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... to the extent they are based on differences between shadow prices and market prices. But it is doubtful whether there would be much scope for using shadow prices as policy variables under these conditions. Thus, equilibrium can be brought about only at the cost of massive subsidies by using funds wh ...
... to the extent they are based on differences between shadow prices and market prices. But it is doubtful whether there would be much scope for using shadow prices as policy variables under these conditions. Thus, equilibrium can be brought about only at the cost of massive subsidies by using funds wh ...
the financial theory of investment
... “rigorous” mainstream theory assumes that defaults never occur, meaning that deflation cannot generate a financial crisis when debtors find the real burden of debt rising because nominal prices and incomes are falling. This is precisely what made the Great Depression so bad—and what allows mainstrea ...
... “rigorous” mainstream theory assumes that defaults never occur, meaning that deflation cannot generate a financial crisis when debtors find the real burden of debt rising because nominal prices and incomes are falling. This is precisely what made the Great Depression so bad—and what allows mainstrea ...
Effect of Regional Export-oriented Growth Pole: A Framework of Theoretical Analysis
... growth is promoted mostly by the foreign trade, especially the export growth. For example, Shanghai’s export in volume is increased from USD 3.58 billion in 1986 to USD 113.57 billion in 2006, and Guangdong’s export in volume is added from USD 4.25 billion to USD 301.95 billion in corresponding peri ...
... growth is promoted mostly by the foreign trade, especially the export growth. For example, Shanghai’s export in volume is increased from USD 3.58 billion in 1986 to USD 113.57 billion in 2006, and Guangdong’s export in volume is added from USD 4.25 billion to USD 301.95 billion in corresponding peri ...
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... rates. However, the growth rate can be high for several different reasons. In particular, it can be high because the economy is adjusting to a shock which has permanently increased the level of GDP by a given amount. For example, an increase in labour market participation by 10 per cent typically in ...
... rates. However, the growth rate can be high for several different reasons. In particular, it can be high because the economy is adjusting to a shock which has permanently increased the level of GDP by a given amount. For example, an increase in labour market participation by 10 per cent typically in ...
Theories of Development: A Comparative Analysis
... ment. Its most influential and outspoken advocate was the American economic historian Walt W. Rostow. According to the Rostow doctrine, the transition from underdevelopment to development can be described in terms of a series of steps or stages through which all countries must proceed. As Professor ...
... ment. Its most influential and outspoken advocate was the American economic historian Walt W. Rostow. According to the Rostow doctrine, the transition from underdevelopment to development can be described in terms of a series of steps or stages through which all countries must proceed. As Professor ...
ECO120-Midterm1 Answ..
... The Howard government plans to spend $600m on new coast guard ships for the Australian armed forces. These ships will be built in Tasmania. Explain (using both a diagram and text based on what you have learned so far in class) how the Australian economy will be affected by: [Hints: Remember to draw ...
... The Howard government plans to spend $600m on new coast guard ships for the Australian armed forces. These ships will be built in Tasmania. Explain (using both a diagram and text based on what you have learned so far in class) how the Australian economy will be affected by: [Hints: Remember to draw ...
Blanchard4e_IM_Ch05
... In sum, fiscal policy will have a greater effect on output to the extent that the multiplier is large, money demand is not very sensitive to income, money demand is very sensitive to the interest rate, and investment is not very sensitive to the interest rate. One could carry out the same exercise w ...
... In sum, fiscal policy will have a greater effect on output to the extent that the multiplier is large, money demand is not very sensitive to income, money demand is very sensitive to the interest rate, and investment is not very sensitive to the interest rate. One could carry out the same exercise w ...
INDUSTRIALIZATION AND DEVELOPMENT
... which permit further production, social overhead , capital which further together with human resources provide new services created by industrialization. Industrialization as such does not need to be justified today. That industrialization is key to development is not all that debatable. But neverth ...
... which permit further production, social overhead , capital which further together with human resources provide new services created by industrialization. Industrialization as such does not need to be justified today. That industrialization is key to development is not all that debatable. But neverth ...
Economic growth, an evolutionary process
... Evolution.” This process is driven by entrepreneurs who have perceived opportunities for wealth through innovations that have been implemented. Following the first evolutionary growth model (Nelson and Winter, 1982), we accept that a growth model must also be based on a model of economic evolution2. ...
... Evolution.” This process is driven by entrepreneurs who have perceived opportunities for wealth through innovations that have been implemented. Following the first evolutionary growth model (Nelson and Winter, 1982), we accept that a growth model must also be based on a model of economic evolution2. ...
File
... For explaining the possible cause of an increase in aggregate demand such as an increase in consumption, investment, government expenditure or net exports (1). For stating that cost push inflation is caused by an increase in costs (1). For explaining the possible cause of an increase in costs such a ...
... For explaining the possible cause of an increase in aggregate demand such as an increase in consumption, investment, government expenditure or net exports (1). For stating that cost push inflation is caused by an increase in costs (1). For explaining the possible cause of an increase in costs such a ...
Final Exam - Rose
... A. P4, the profit-maximizing firm would produce 30 units and incur a loss that is less than fixed cost in absolute value. B. P3, the profit-maximizing firm would produce 62 units and incur a loss equal to fixed cost in absolute value. C. P2, the profit-maximizing firm would produce 44 units, but it ...
... A. P4, the profit-maximizing firm would produce 30 units and incur a loss that is less than fixed cost in absolute value. B. P3, the profit-maximizing firm would produce 62 units and incur a loss equal to fixed cost in absolute value. C. P2, the profit-maximizing firm would produce 44 units, but it ...
Aggregate demand
... • The multiplier is the ratio of the change in equilibrium output to the change in autonomous spending that causes the change in output. • The larger the marginal propensity to consume, the larger is the multiplier. – The higher is the marginal propensity to save, the more of each extra unit of inco ...
... • The multiplier is the ratio of the change in equilibrium output to the change in autonomous spending that causes the change in output. • The larger the marginal propensity to consume, the larger is the multiplier. – The higher is the marginal propensity to save, the more of each extra unit of inco ...
Exam 3 - Fresno State Email
... 25. When a bank needs to increase its reserves, it will a. call in all its loans b. stop paying interest on its saving accounts c. borrow money from the government d. call in a loan or reduce new lending e. increase the number of loans it makes 26. Which of the following determines how much money an ...
... 25. When a bank needs to increase its reserves, it will a. call in all its loans b. stop paying interest on its saving accounts c. borrow money from the government d. call in a loan or reduce new lending e. increase the number of loans it makes 26. Which of the following determines how much money an ...
Chapter_12
... Innovation When new products and ideas are successfully brought to market, output goes up, boosting GDP and business profits. Scale of the Market Larger markets provide more incentives for innovation since the potential profits are greater. Education and Experience Increased human capital makes work ...
... Innovation When new products and ideas are successfully brought to market, output goes up, boosting GDP and business profits. Scale of the Market Larger markets provide more incentives for innovation since the potential profits are greater. Education and Experience Increased human capital makes work ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... taxation (or increased public sector efficiency and expenditure cuts) rather than with the revenue from the inflation tax. Third, the credibility of the program is enhanced by a formula for capitalization of external interest geared to an ability to pay rather than to an exogenous and possibly ...
... taxation (or increased public sector efficiency and expenditure cuts) rather than with the revenue from the inflation tax. Third, the credibility of the program is enhanced by a formula for capitalization of external interest geared to an ability to pay rather than to an exogenous and possibly ...
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.