Unit 4 – GDP and Business Cycle
... made in US but sold elsewhere, but not the valued of goods made in other countries but consumed here. • Can be a positive or negative number depending on whether one has a trade surplus (exporting more than importing) or a trade deficit (importing more than exporting) ...
... made in US but sold elsewhere, but not the valued of goods made in other countries but consumed here. • Can be a positive or negative number depending on whether one has a trade surplus (exporting more than importing) or a trade deficit (importing more than exporting) ...
- Department of External Resources
... around 5 percent with the per capita income rising from about US$ 300 in 1977 to about US$ 950 in 2003. Despite what appears to be a tripling of the per capita income levels in the country, a majority of the nation has only experienced an increase in the cost of living, as the rising per-capita inco ...
... around 5 percent with the per capita income rising from about US$ 300 in 1977 to about US$ 950 in 2003. Despite what appears to be a tripling of the per capita income levels in the country, a majority of the nation has only experienced an increase in the cost of living, as the rising per-capita inco ...
THE EFFECT OF GOVERNMENT SIZE ON ECONOMIC GROWTH
... On the darker side, government is inefficient since it always occupies a position of monopoly. If we assume that government agents are driven by the self-interest principle, then interest groups can influence policy to the detriment of the public at large. Several early works provide bases for compe ...
... On the darker side, government is inefficient since it always occupies a position of monopoly. If we assume that government agents are driven by the self-interest principle, then interest groups can influence policy to the detriment of the public at large. Several early works provide bases for compe ...
Is the Greek Crisis One of Supply or Demand?
... is brought about by wage decreases translates into a contraction of aggregate activity and unemployment. • Wages did fall by over 20%, much more than in the other program countries. • Associated fall in unit labor costs, consistent with the performance of exports, slow to translate into a fall in pr ...
... is brought about by wage decreases translates into a contraction of aggregate activity and unemployment. • Wages did fall by over 20%, much more than in the other program countries. • Associated fall in unit labor costs, consistent with the performance of exports, slow to translate into a fall in pr ...
Expected questions for Board Examination 2015
... Explain with the help of diagram the situation of underemployment equilibrium. UNIT- 9 GOVERNMENT BUDGET AND THE ECONOMY (8 MARKS) Q67. Define government budget. State its objectives. Q68. Distinguish between revenue receipts and capital receipts in a government budget. Give 3 examples of each. Q69. ...
... Explain with the help of diagram the situation of underemployment equilibrium. UNIT- 9 GOVERNMENT BUDGET AND THE ECONOMY (8 MARKS) Q67. Define government budget. State its objectives. Q68. Distinguish between revenue receipts and capital receipts in a government budget. Give 3 examples of each. Q69. ...
THE AGRICULTURAL EXPORT-GROWTH NEXUS IN THE EU-27
... determine the statistical significance of the empirical regularities observed. The regression line is only intended to allow the raw data to provide a rough impression of the pattern that would be expected to emerge in the absence of any other influences on agricultural productivity and on the open ...
... determine the statistical significance of the empirical regularities observed. The regression line is only intended to allow the raw data to provide a rough impression of the pattern that would be expected to emerge in the absence of any other influences on agricultural productivity and on the open ...
is the export led growth hypothesis valid for malaysia
... process with less developed newcomers replacing maturing export economies in which surplus labor supplies have been exhausted and wages are rising. Krugman P. (1994) hypothesizes that Asian growth is similar to the Soviet Union in its high growth era where the economy was driven by extraordinary gro ...
... process with less developed newcomers replacing maturing export economies in which surplus labor supplies have been exhausted and wages are rising. Krugman P. (1994) hypothesizes that Asian growth is similar to the Soviet Union in its high growth era where the economy was driven by extraordinary gro ...
WTO Accession: Myths and Reality
... protecting against domestic lobbies and building market supporting institutions, along with transition to comparative advantage sectors) represents a nearly 20% gain in terms of consumption over the long run. • Which model to follow: China, Ukraine (EU in relation to Russia) or Norway? ...
... protecting against domestic lobbies and building market supporting institutions, along with transition to comparative advantage sectors) represents a nearly 20% gain in terms of consumption over the long run. • Which model to follow: China, Ukraine (EU in relation to Russia) or Norway? ...
Globalization and Economic Growth in the World Economy 1
... U.S. dollar). Using the official exchange rate to make such a conversion, however, could be very misleading because exchange rates are often grossly misaligned and do not take into consideration differences in the purchasing power of money in different countries. Even more problematic is the fact th ...
... U.S. dollar). Using the official exchange rate to make such a conversion, however, could be very misleading because exchange rates are often grossly misaligned and do not take into consideration differences in the purchasing power of money in different countries. Even more problematic is the fact th ...
Lecture 11
... – If households expect a higher future income, they will factor this into their borrowing decisions and plan for higher income. – So when income increases between periods, if it was expected it has no impact on consumption – But if households receive an unexpected increase in income, this will impac ...
... – If households expect a higher future income, they will factor this into their borrowing decisions and plan for higher income. – So when income increases between periods, if it was expected it has no impact on consumption – But if households receive an unexpected increase in income, this will impac ...
The Equity Risk Premium (μ)
... • In countries not experiencing an equity risk shock Demand rises more than supply Employment rises but inflation falls due to falling prices in affected countries and an exchange rate appreciation Interest rates should fall because of a fall in the global real interest rate ...
... • In countries not experiencing an equity risk shock Demand rises more than supply Employment rises but inflation falls due to falling prices in affected countries and an exchange rate appreciation Interest rates should fall because of a fall in the global real interest rate ...
Ch 12: C 1-6
... shift further to the right than would have been the case if the Fed had not accommodated the expansionary fiscal policy. This will cause more upward pressure on the price level. But as the price level increases, real money balances will decrease, causing interest rates to rise again. Therefore, in t ...
... shift further to the right than would have been the case if the Fed had not accommodated the expansionary fiscal policy. This will cause more upward pressure on the price level. But as the price level increases, real money balances will decrease, causing interest rates to rise again. Therefore, in t ...
Teacher Edition - Federal Reserve Bank of St. Louis
... Finally, some of the slowdown in productivity growth is likely due to a slowdown in technological change. Some economists speculate that even with advances in technology, some of the newer advances might impact productivity only slightly. For example, Twitter and Snapchat have great social value (an ...
... Finally, some of the slowdown in productivity growth is likely due to a slowdown in technological change. Some economists speculate that even with advances in technology, some of the newer advances might impact productivity only slightly. For example, Twitter and Snapchat have great social value (an ...
4. Aggregate Demand Policy Under Alternative Supply Assumptions
... Because the AS curve is vertical in the long run, only supply-side policies (policies which shift the aggregate supply curve) can produce long-run growth. Deregulating industries, making laws and regulations easier to comply with, and changing or removing unnecessary laws all have the capacity to do ...
... Because the AS curve is vertical in the long run, only supply-side policies (policies which shift the aggregate supply curve) can produce long-run growth. Deregulating industries, making laws and regulations easier to comply with, and changing or removing unnecessary laws all have the capacity to do ...
Advances in Business Cycle Theory
... Top reasons for sticky prices: Results from surveys of managers 1. Coordination failure: firms hold back on price changes, waiting for others to go first 2. Firms delay raising prices until costs rise 3. Firms prefer to vary other product attributes, such as quality, service, or delivery lags 4. Im ...
... Top reasons for sticky prices: Results from surveys of managers 1. Coordination failure: firms hold back on price changes, waiting for others to go first 2. Firms delay raising prices until costs rise 3. Firms prefer to vary other product attributes, such as quality, service, or delivery lags 4. Im ...
L12 - UKM
... fiscal policy (G and T ) monetary policy (M ) other factors, like exogenous changes in C or I Firms set prices and then meet all demand. It thus no longer need be the case that the markets for capital and labor are in equilibrium. The shortrun supply of goods and services represented by the ...
... fiscal policy (G and T ) monetary policy (M ) other factors, like exogenous changes in C or I Firms set prices and then meet all demand. It thus no longer need be the case that the markets for capital and labor are in equilibrium. The shortrun supply of goods and services represented by the ...
ETHIOPIA`S EXPORT STRATEGY: KEY FEATURES AND MAJOR
... is to enhance the integration of the Ethiopian economy with the world economy. In this endeavor, due emphasis has been given to the promotion of exports. Accordingly, an export development strategy has been devised to increase and diversify the country’s exports. Ethiopia’s long term development str ...
... is to enhance the integration of the Ethiopian economy with the world economy. In this endeavor, due emphasis has been given to the promotion of exports. Accordingly, an export development strategy has been devised to increase and diversify the country’s exports. Ethiopia’s long term development str ...
Complete Syllabus Macroeconomics (12th Grade)
... opportunity costs. They recognize the distinction between absolute and comparative advantage and apply the principle of comparative advantage to determine the basis on which mutually advantageous trade can take place between individuals and/or countries, and to identify comparative advantage from di ...
... opportunity costs. They recognize the distinction between absolute and comparative advantage and apply the principle of comparative advantage to determine the basis on which mutually advantageous trade can take place between individuals and/or countries, and to identify comparative advantage from di ...
THE DIFFUSION OF ACTIVITIES
... assuming that there is no technical progress at all and that the level of labour productivity everywhere is given. (To avoid any possible confusion we make the extreme assumption that labour reserves exist in the form of pure unemployment, i.e. there are no other activities in the diffusion-receivin ...
... assuming that there is no technical progress at all and that the level of labour productivity everywhere is given. (To avoid any possible confusion we make the extreme assumption that labour reserves exist in the form of pure unemployment, i.e. there are no other activities in the diffusion-receivin ...
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.