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... short of the cost of capital, they let their capital stock shrink. We can also now see that the separation of economic activity between production and rental firms, although useful for clarifying our thinking, is not necessary for our conclusion regarding how firms choose how much to invest. For a f ...
... short of the cost of capital, they let their capital stock shrink. We can also now see that the separation of economic activity between production and rental firms, although useful for clarifying our thinking, is not necessary for our conclusion regarding how firms choose how much to invest. For a f ...
File - MCNEIL ECONOMICS
... (1) Domestic resource prices include the prices for labor, capital, and natural resources used for production. If any of these input prices decrease, then AS will decrease because the per-unit cost of production will decrease. When the prices of these domestic factors of production increase, then AS ...
... (1) Domestic resource prices include the prices for labor, capital, and natural resources used for production. If any of these input prices decrease, then AS will decrease because the per-unit cost of production will decrease. When the prices of these domestic factors of production increase, then AS ...
Chapter 9
... – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were ...
... – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were ...
Chapter 9
... – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were ...
... – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were ...
Chapter 9 Chapter Outline Figure 9.1 The FE line
... – The Federal Reserve Board’s FRB/US model, introduced in 1996, improves on the old model by better handling of expectations, improved modeling of reactions to shocks, and use of newer statistical techniques – The FRB/US model is the workhorse for policy analysis by the Fed’s staff economists – Boar ...
... – The Federal Reserve Board’s FRB/US model, introduced in 1996, improves on the old model by better handling of expectations, improved modeling of reactions to shocks, and use of newer statistical techniques – The FRB/US model is the workhorse for policy analysis by the Fed’s staff economists – Boar ...
CH 9 PDF
... – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were ...
... – The real interest rate did not rise during the 1973–1974 oil price shock (though it did during the 1979–1980 shock) • It could be that people expected the 1973–1974 oil price shock to be permanent • In that case the real interest rate would not necessarily rise • If so, people’s expectations were ...
Chapter 33 PPT of Mankiw presented in class
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
... When aggregate demand falls, output and the price level fall in the short run. Over time, a change in expectations causes wages, prices, and perceptions to adjust, and the short-run aggregate supply curve shifts rightward. In the long run, the economy returns to the natural rates of output and une ...
GettinG the Balance riGht: transitioninG out of sustained
... balance sheets, and a strong recovery will require an increase in net exports. For surplus economies facing weaker demand from deficit economies, the challenge is to rebalance growth from external sources to domestic sources and to run smaller surpluses in the future. Together, these two adjustments ...
... balance sheets, and a strong recovery will require an increase in net exports. For surplus economies facing weaker demand from deficit economies, the challenge is to rebalance growth from external sources to domestic sources and to run smaller surpluses in the future. Together, these two adjustments ...
The Expenditure-Output Model
... and real GDP on the horizontal axis. A vertical line shows potential GDP where full employment occurs. The 45-degree line shows all points where aggregate expenditures and output are equal. The aggregate expenditure schedule shows how total spending or aggregate expenditure increases as output or re ...
... and real GDP on the horizontal axis. A vertical line shows potential GDP where full employment occurs. The 45-degree line shows all points where aggregate expenditures and output are equal. The aggregate expenditure schedule shows how total spending or aggregate expenditure increases as output or re ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... and one industry (industry T) that transports the good to final demanders6 or to the service industry.7 The transportation service will be regarded as commodity 3. We assume that the service output does not require transportation inputs to be delivered to purchasers of services. Table 7C.1 combines ...
... and one industry (industry T) that transports the good to final demanders6 or to the service industry.7 The transportation service will be regarded as commodity 3. We assume that the service output does not require transportation inputs to be delivered to purchasers of services. Table 7C.1 combines ...
riezman ge08 6483674 en
... desirable and are more willing to pay for it. The larger price markup over the non-ideal product makes outsourcing more pro…table. Thus, our model features “cross-country complementarity” that triggers the outsourcing equilibrium when local country income is su¢ ciently high. It is possible that out ...
... desirable and are more willing to pay for it. The larger price markup over the non-ideal product makes outsourcing more pro…table. Thus, our model features “cross-country complementarity” that triggers the outsourcing equilibrium when local country income is su¢ ciently high. It is possible that out ...
Analysis of Economic Factors on Restricting Consumption of Rural
... 1 Introduction There are many factors affecting consumer demand in rural China. It can be summarized as economic and non-economic factors. Economic factors include farmers’ income, interest rates, income distribution, industrial structure, etc.; non-economic factors include consumer psychology, cons ...
... 1 Introduction There are many factors affecting consumer demand in rural China. It can be summarized as economic and non-economic factors. Economic factors include farmers’ income, interest rates, income distribution, industrial structure, etc.; non-economic factors include consumer psychology, cons ...
Introduction to Economics
... • The aggregate-supply curve tells us the total quantity of goods and services that firms produce and sell at any given price level • Unlike the aggregate-demand curve, which is always downward sloping, the aggregate-supply curve shows a relationship that depends crucially on the time horizon being ...
... • The aggregate-supply curve tells us the total quantity of goods and services that firms produce and sell at any given price level • Unlike the aggregate-demand curve, which is always downward sloping, the aggregate-supply curve shows a relationship that depends crucially on the time horizon being ...
Ch 12
... – Spending by businesses on things such as machines and buildings, which can be used to produce goods and services in the future – The investment part of real GDP is the portion that will be used in the process of producing goods in the future ...
... – Spending by businesses on things such as machines and buildings, which can be used to produce goods and services in the future – The investment part of real GDP is the portion that will be used in the process of producing goods in the future ...
The Investment Development Path Hypothesis
... The third stage of this Investment Development Path includes the so-called emerging countries. They exhibit a growing NOI position, due to an increased rate of growth of outward FDI and a gradual slowdown in inward FDI. This intermediate stage shows an increase in the economy’s income per capita, an ...
... The third stage of this Investment Development Path includes the so-called emerging countries. They exhibit a growing NOI position, due to an increased rate of growth of outward FDI and a gradual slowdown in inward FDI. This intermediate stage shows an increase in the economy’s income per capita, an ...
How Will Demographic Change Affect the Global Economy
... rising, will remain relatively small. • The share of the working-age population will fall in advanced countries, but increase in many developing countries. In Japan and some European 5These ...
... rising, will remain relatively small. • The share of the working-age population will fall in advanced countries, but increase in many developing countries. In Japan and some European 5These ...
Chapter 6 Lecture
... An economy that exports cloth is better off when the price of cloth rises relative to the price of food: – the isovalue line becomes steeper and a higher indifference curve can be reached. A higher relative price of cloth means that more calories of food can be imported for every yard of cloth e ...
... An economy that exports cloth is better off when the price of cloth rises relative to the price of food: – the isovalue line becomes steeper and a higher indifference curve can be reached. A higher relative price of cloth means that more calories of food can be imported for every yard of cloth e ...
Reasonable Expectations and the First Millennium Development
... shown to predict a rather modest impact from past aid donations. This resonates far better with actual experience on the continent than the dramatic impact suggested by the AK-approach. We then go on to present our baseline calibrations of future aid requirements for Sub-Saharan Africa, using a rang ...
... shown to predict a rather modest impact from past aid donations. This resonates far better with actual experience on the continent than the dramatic impact suggested by the AK-approach. We then go on to present our baseline calibrations of future aid requirements for Sub-Saharan Africa, using a rang ...
Practical Guide To Contemporary Economics
... something is measured by what you are willing to give up getting one more unit of it People make rational choices and use our scarce resources in the way that makes them as well off as possible when they take those actions for which marginal benefits exceed or equals marginal costs. In making their ...
... something is measured by what you are willing to give up getting one more unit of it People make rational choices and use our scarce resources in the way that makes them as well off as possible when they take those actions for which marginal benefits exceed or equals marginal costs. In making their ...
Creating an Environment for Growth and Prosperity (15th ed.)
... • Economic growth is important because it is a necessary ingredient for higher incomes and higher living standards. • GDP is a measure of output and income. Growth of output is necessary for the growth of income. • Per capita GDP is the nation’s GDP divided by its population. Growth of per capita GD ...
... • Economic growth is important because it is a necessary ingredient for higher incomes and higher living standards. • GDP is a measure of output and income. Growth of output is necessary for the growth of income. • Per capita GDP is the nation’s GDP divided by its population. Growth of per capita GD ...
China and Asia in Global Trade Slowdown
... Regional comparison of trade volume growth raises questions on the role that China played in the global trade slowdown, either as a source or a key transmitter of shocks. China can be a strong transmitter of global demand slowdown, given the central role played by China in global value chains. As th ...
... Regional comparison of trade volume growth raises questions on the role that China played in the global trade slowdown, either as a source or a key transmitter of shocks. China can be a strong transmitter of global demand slowdown, given the central role played by China in global value chains. As th ...
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.