Basic Macroeconomic Relationships
... • Technology may change. Technological change often involves lower costs, which would increase expected returns. • Stock of capital goods on hand will affect new investment. If there is abundant idle capital on hand because of weak demand or recent investment, new investments would be less profitabl ...
... • Technology may change. Technological change often involves lower costs, which would increase expected returns. • Stock of capital goods on hand will affect new investment. If there is abundant idle capital on hand because of weak demand or recent investment, new investments would be less profitabl ...
Leaving Certificate Examinations 2005
... Too frequently famine occurs resulting in disease; deaths at early age; high medical costs. ...
... Too frequently famine occurs resulting in disease; deaths at early age; high medical costs. ...
capr 1+) New Ke,Jne5Ian conomIcs: SticL,9 PrIces
... for economic policy. The New Keynesian model studied in this chapter is essentially identical to the monetary intertemporal model in Chapter 12, except that the price level is not sufficiently flexible for the goods market to clear in the short run. Given the failure of the goods market to clear, th ...
... for economic policy. The New Keynesian model studied in this chapter is essentially identical to the monetary intertemporal model in Chapter 12, except that the price level is not sufficiently flexible for the goods market to clear in the short run. Given the failure of the goods market to clear, th ...
T Investment and Employment by Manufacturing
... to the degree the plant disproportionately serves its local market, a result, say, of high transportation costs. A region’s wages relative to those in the country as a whole are also included, to help explain investment and employment decisions in the area. If wages rise in a region relative to the ...
... to the degree the plant disproportionately serves its local market, a result, say, of high transportation costs. A region’s wages relative to those in the country as a whole are also included, to help explain investment and employment decisions in the area. If wages rise in a region relative to the ...
The American University in Cairo School of Business A Thesis Submitted to
... growth determinants to gauge their impact on Egypt‟s economic growth. This research uses annual time series analysis to assess the significance of several important variables on economic growth in Egypt for the period 1985-2007, and applies Ordinary Least Square method of estimation, with an autoreg ...
... growth determinants to gauge their impact on Egypt‟s economic growth. This research uses annual time series analysis to assess the significance of several important variables on economic growth in Egypt for the period 1985-2007, and applies Ordinary Least Square method of estimation, with an autoreg ...
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... This report is an analysis of the textile and clothing cluster in the Kyrgyz Republic. This has been the fastest growing segment of the economy over the last decade and holds special p ...
... This report is an analysis of the textile and clothing cluster in the Kyrgyz Republic. This has been the fastest growing segment of the economy over the last decade and holds special p ...
economics-q.b-with answers
... Ans.17 For whom to produce is central problem of an economy which deals with factoral distribution of income and personal distribution of goods and services to whole sections of society. The government desire to have more and more resources allocated to the production of goods for poorer section of ...
... Ans.17 For whom to produce is central problem of an economy which deals with factoral distribution of income and personal distribution of goods and services to whole sections of society. The government desire to have more and more resources allocated to the production of goods for poorer section of ...
Durable Goods and the Business Cycle
... be more easily deferred. For example, a household experiencing a fall in income may decide not to purchase a new car since it can continue to use its current car. As well as being able to be postponed, many durable goods can be considered discretionary compared with more essential spending like food ...
... be more easily deferred. For example, a household experiencing a fall in income may decide not to purchase a new car since it can continue to use its current car. As well as being able to be postponed, many durable goods can be considered discretionary compared with more essential spending like food ...
Chapter 9 - Cengage Learning
... additive productivity and constant returns in production, the marginal product of capital will always be constant regardless of the current level of productivity or the size of the capital stock. This form of production function is a simplifying assumption but allows us to emphasize the role that co ...
... additive productivity and constant returns in production, the marginal product of capital will always be constant regardless of the current level of productivity or the size of the capital stock. This form of production function is a simplifying assumption but allows us to emphasize the role that co ...
Chapter 10 - The Citadel
... levels to jump, resulting in sudden inflation and then real GDP would drop, leading to recession. ...
... levels to jump, resulting in sudden inflation and then real GDP would drop, leading to recession. ...
Highly Important Question National Income and
... 35. Explain the concept of deflationary gap. Explain two measures by which a central bank can attempt to reduce this gap. 36. State whether the following statements are true or false. Give reasons for your answer: (a) When marginal propensity to consume is greater than marginal propensity to save, ...
... 35. Explain the concept of deflationary gap. Explain two measures by which a central bank can attempt to reduce this gap. 36. State whether the following statements are true or false. Give reasons for your answer: (a) When marginal propensity to consume is greater than marginal propensity to save, ...
13.1 aggregate supply
... changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each price level. So an increase in the money prices of other resources decreases aggregate supply ...
... changes aggregate supply because it changes firms’ costs. The higher the money prices of other resources, the higher are firms’ costs and the smaller is the quantity that firms are willing to supply at each price level. So an increase in the money prices of other resources decreases aggregate supply ...
How national income and profits depend on expenditures and total
... increment in pay implies a higher social product: (10) sP − sW (11) dY2 ...
... increment in pay implies a higher social product: (10) sP − sW (11) dY2 ...
S0900134_es.pdf
... Introduction ..................................................................................7 ...
... Introduction ..................................................................................7 ...
The Second Growth and Transformation Plan (GTP II)
... of the share of industry in GDP is accounted for by the construction sector during the same period. There is shift in the structure of the economy, though, not on the scale and speed required. Thus, the process needs to be accelerated to bring about a significant shift in the structure of the econo ...
... of the share of industry in GDP is accounted for by the construction sector during the same period. There is shift in the structure of the economy, though, not on the scale and speed required. Thus, the process needs to be accelerated to bring about a significant shift in the structure of the econo ...
Política monetaria en un entorno de dos monedas
... aware of some of the constraints faced by central banks when conducting monetary policy in these economies. As described in the 2000 edition of the IMF’s World Economic Outlook, in a partially dollarized economy ”... a signi…cant constraint on monetary policy discretion is imposed. Not only is the m ...
... aware of some of the constraints faced by central banks when conducting monetary policy in these economies. As described in the 2000 edition of the IMF’s World Economic Outlook, in a partially dollarized economy ”... a signi…cant constraint on monetary policy discretion is imposed. Not only is the m ...
Creative Destruction - Barrow Cadbury Trust
... approach, learning from mistakes and calibrating policy as necessary. ...
... approach, learning from mistakes and calibrating policy as necessary. ...
Macroeconomic Fluctuations Under Natural Disaster Shocks in
... wages, and nominal money under the effects of demand and supply innovations. His results are consistent with the traditional interpretation of macroeconomic fluctuations. Movements of output are dominated by demand shocks in the first quarters and by supply shocks in the long run. Agenor et al. (199 ...
... wages, and nominal money under the effects of demand and supply innovations. His results are consistent with the traditional interpretation of macroeconomic fluctuations. Movements of output are dominated by demand shocks in the first quarters and by supply shocks in the long run. Agenor et al. (199 ...
Paper
... competitiveness. The last section is based on the conclusions drawn from the study. 2. Transformation of the Malaysian Economy: An Overview The Malaysian economy has experienced rapid economic growth during the past few decades – averaging over 8.0% for 1970-80, 5.2 % for 1980-1990, and 8.7 for 1990 ...
... competitiveness. The last section is based on the conclusions drawn from the study. 2. Transformation of the Malaysian Economy: An Overview The Malaysian economy has experienced rapid economic growth during the past few decades – averaging over 8.0% for 1970-80, 5.2 % for 1980-1990, and 8.7 for 1990 ...
chapter one introudction
... the massive effort made and the many programmes established for that purpose. Indeed, as in many other sub-Saharan Africa countries, both the number of poor and the proportion of poor have been increasing in Nigeria. In particular, the 1998 United Nations human development report declares that 48% o ...
... the massive effort made and the many programmes established for that purpose. Indeed, as in many other sub-Saharan Africa countries, both the number of poor and the proportion of poor have been increasing in Nigeria. In particular, the 1998 United Nations human development report declares that 48% o ...
Lesson 8 - ECO 151
... The second macroeconomic model that we need to explore is known as the Aggregate Demand/Aggregate Supply Model. This model is important to us because, unlike in the Aggregate Expenditures Model, we do not hold prices constant. This is a significant flaw of the Aggregate Expenditures Model. As a resu ...
... The second macroeconomic model that we need to explore is known as the Aggregate Demand/Aggregate Supply Model. This model is important to us because, unlike in the Aggregate Expenditures Model, we do not hold prices constant. This is a significant flaw of the Aggregate Expenditures Model. As a resu ...
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.