Introduction_to_PI+
... accurately reflect the reality that government budgets must be restricted to their revenue sources, many of which are affected by economic conditions. • State government spending estimated separate from local government spending since response to changes in GDP are statistically different. what does ...
... accurately reflect the reality that government budgets must be restricted to their revenue sources, many of which are affected by economic conditions. • State government spending estimated separate from local government spending since response to changes in GDP are statistically different. what does ...
Inflation and growth: Explaining a negative effect
... between OECD and APEC samples using differences in the credit technology, or in the ‘‘financial development’’. The model-based explanation is that inflation lowers the rate of return on capital, both human and physical. Ever since the Ramsey-Cass-Koopmans theory endogenized the savings rate of the Solo ...
... between OECD and APEC samples using differences in the credit technology, or in the ‘‘financial development’’. The model-based explanation is that inflation lowers the rate of return on capital, both human and physical. Ever since the Ramsey-Cass-Koopmans theory endogenized the savings rate of the Solo ...
`Decoupled` from Traffic Growth?
... impacts via, for example, rationalisation of production/distribution/land use, effects on labour costs, increased output, inward investment, unlocking inaccessible sites for development, triggering growth which stimulates further growth Policies intended to change volume of traffic that will arise f ...
... impacts via, for example, rationalisation of production/distribution/land use, effects on labour costs, increased output, inward investment, unlocking inaccessible sites for development, triggering growth which stimulates further growth Policies intended to change volume of traffic that will arise f ...
Macroeconomic Policy Coordination in a Competitive Real
... relevant role when firms face credit constraints. Expectations about the future are thus crucial for investment decisions. The view I adopt about the way agents form expectations is rather “behavioralist”. Future is by its own nature unknown. On the other hand, agents face costs at gathering informa ...
... relevant role when firms face credit constraints. Expectations about the future are thus crucial for investment decisions. The view I adopt about the way agents form expectations is rather “behavioralist”. Future is by its own nature unknown. On the other hand, agents face costs at gathering informa ...
Has Trade Liberalisation in Poor Countries
... trade theory pioneered by Krugman (1984, 1986) in the 1980s, who shows there is a case for protecting industries with spillovers and externalities, and for using import substitution for export promotion. In most standard growth models, however, the effect of trade on growth is ambiguous. For example ...
... trade theory pioneered by Krugman (1984, 1986) in the 1980s, who shows there is a case for protecting industries with spillovers and externalities, and for using import substitution for export promotion. In most standard growth models, however, the effect of trade on growth is ambiguous. For example ...
macroeconomic policy - Faculty of Business and Economics Courses
... sales is permanent or transitory. So, it may prefer to wait and see whether this higher demand will continue into future. Secondly, producers work on explicit or implicit contracts with their customers. Explicit contracts are written contracts, whereas implicit contracts are unwritten contracts base ...
... sales is permanent or transitory. So, it may prefer to wait and see whether this higher demand will continue into future. Secondly, producers work on explicit or implicit contracts with their customers. Explicit contracts are written contracts, whereas implicit contracts are unwritten contracts base ...
economic-question-pa..
... the PPF curve? Clearly, since points on the PPF curve are possible, the economy could produce more of both goods. Hence, it is clearly not producing the maximum amount of output given its resources. There are three possible reasons for the economy's failure to produce the maximum possible output, ei ...
... the PPF curve? Clearly, since points on the PPF curve are possible, the economy could produce more of both goods. Hence, it is clearly not producing the maximum amount of output given its resources. There are three possible reasons for the economy's failure to produce the maximum possible output, ei ...
Some Monetary Facts
... economists in doing that justifies only humility” (quoted in Bennett 1995). We study a cross section of countries rather than just a single country because we want our results to be independent of policy rules. If we were to study a single country, the correlations we obtained could be an artifact o ...
... economists in doing that justifies only humility” (quoted in Bennett 1995). We study a cross section of countries rather than just a single country because we want our results to be independent of policy rules. If we were to study a single country, the correlations we obtained could be an artifact o ...
Global outlook - the United Nations
... Macroeconomic prospects for the world economy The road to recovery from the Great Recession is proving to be long, winding and rocky. After a year of fragile and uneven recovery, growth of the world economy is now decelerating on a broad front, presaging weaker global growth in the outlook. Weakness ...
... Macroeconomic prospects for the world economy The road to recovery from the Great Recession is proving to be long, winding and rocky. After a year of fragile and uneven recovery, growth of the world economy is now decelerating on a broad front, presaging weaker global growth in the outlook. Weakness ...
Principles of Economics, Case and Fair,9e
... inflation An increase in the overall price level. hyperinflation A period of very rapid increases in the overall price level. deflation A decrease in the overall price level. ...
... inflation An increase in the overall price level. hyperinflation A period of very rapid increases in the overall price level. deflation A decrease in the overall price level. ...
1 Sample Questions for Microeconomics 1. Which of the following is
... a. The central bank should increase the nation's money supply. b. The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. d. The local government ought to spen ...
... a. The central bank should increase the nation's money supply. b. The increase in the nation's money supply helped push the nation's unemployment rate down in the short run. c. Ford Motor Company's new advertising campaign ended up hurting General Motors' sales. d. The local government ought to spen ...
State of Assam`s Development – The Point of Departure
... connecting the North-East with the rest of the country. In the pre-partition days, boats laden with tea, coal and timber reached Kolkata from Dibrugarh in eight days. But now Kolkata – Guwahati takes more than 25 days due customs formalities at various points. The transport ii ...
... connecting the North-East with the rest of the country. In the pre-partition days, boats laden with tea, coal and timber reached Kolkata from Dibrugarh in eight days. But now Kolkata – Guwahati takes more than 25 days due customs formalities at various points. The transport ii ...
File
... What matters to people is the real value of money or income—its purchasing power—not the face value of money or income. There are three basic reasons for such purchasing power changes leading to changes in aggregate demand: The Wealth Effect: The wealth effect is an increase in spending that occur ...
... What matters to people is the real value of money or income—its purchasing power—not the face value of money or income. There are three basic reasons for such purchasing power changes leading to changes in aggregate demand: The Wealth Effect: The wealth effect is an increase in spending that occur ...
Working Paper Series - Federal Reserve Bank of Richmond
... relative productivity has declined, e.g. Rebello (1987). In our two-sector economy a productivity increase in either sector increases the economys ability to produce capital goods. For standard intertemporal consumption smoothing reasons investment, that is the production of durable goods, increase ...
... relative productivity has declined, e.g. Rebello (1987). In our two-sector economy a productivity increase in either sector increases the economys ability to produce capital goods. For standard intertemporal consumption smoothing reasons investment, that is the production of durable goods, increase ...
Inflation
... • An acceleration of demand growth raises the inflation rate and real GDP in the short run. • In the long run, if expectations adjust to the actual behavior of inflation, the inflation rate rises by exactly the same amount as nominal GDP, and any increase in real GDP along the way is only temporary. ...
... • An acceleration of demand growth raises the inflation rate and real GDP in the short run. • In the long run, if expectations adjust to the actual behavior of inflation, the inflation rate rises by exactly the same amount as nominal GDP, and any increase in real GDP along the way is only temporary. ...
How Can the Government Spending Multiplier Be Small at the Zero
... among firms for inputs and, hence, input prices.3 As a consequence, marginal costs and inflation are lower. This mitigates the fall in the real interest rate, which is the key driving force for the expansion of aggregate demand during the ‘ZLB episode’. Eventually, output is lower in the ‘non-separabl ...
... among firms for inputs and, hence, input prices.3 As a consequence, marginal costs and inflation are lower. This mitigates the fall in the real interest rate, which is the key driving force for the expansion of aggregate demand during the ‘ZLB episode’. Eventually, output is lower in the ‘non-separabl ...
13.2 aggregate demand
... 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 ...
UNIT 8
... Factors of production were covered in Unit 1 and these will be relevant to the discussion of developed and developing countries. The idea that various economies will be at different stages of development is linked to the concept of economic growth, discussed in Unit 6, and to the concept of Gross Do ...
... Factors of production were covered in Unit 1 and these will be relevant to the discussion of developed and developing countries. The idea that various economies will be at different stages of development is linked to the concept of economic growth, discussed in Unit 6, and to the concept of Gross Do ...
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.