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Answers to Homework #4
... unit of labor gets smaller and smaller. This is not surprising given that we are holding capital constant: as more and more labor is hired, the labor has less capital per worker to work with and this means that the additional workers will not be as productive as were the workers hired earlier who ha ...
... unit of labor gets smaller and smaller. This is not surprising given that we are holding capital constant: as more and more labor is hired, the labor has less capital per worker to work with and this means that the additional workers will not be as productive as were the workers hired earlier who ha ...
AP Macro Reading Questions Unit V Inflation, Unemployment and
... a) It is very important to have a record of the graphs included in this homework assignment. If you wish to print the entire file, that’s fine; if not, you are required to draw the included graphs and write out the correct answer from the multiple choices given. Simply put, the graphs are required a ...
... a) It is very important to have a record of the graphs included in this homework assignment. If you wish to print the entire file, that’s fine; if not, you are required to draw the included graphs and write out the correct answer from the multiple choices given. Simply put, the graphs are required a ...
Chapter 6
... price level, other things remaining the same, increases the price of domestic goods relative to foreign goods, so imports increase and exports decrease, which decreases the quantity of real GDP demanded. Similarly, a fall in the price level, other things remaining the same, decreases the price of do ...
... price level, other things remaining the same, increases the price of domestic goods relative to foreign goods, so imports increase and exports decrease, which decreases the quantity of real GDP demanded. Similarly, a fall in the price level, other things remaining the same, decreases the price of do ...
the stock market and economic development
... markets and banks in promoting economic growth. The literature on financial liberalization has emphasized abolishing interest rate ceilings and encourages free competition among banks as the way forward to achieve economic growth. However, it has largely overlooked the possibility that endogenous co ...
... markets and banks in promoting economic growth. The literature on financial liberalization has emphasized abolishing interest rate ceilings and encourages free competition among banks as the way forward to achieve economic growth. However, it has largely overlooked the possibility that endogenous co ...
Market for Loanable Funds
... have chosen to save and lend out, rather than use for their own consumption. ...
... have chosen to save and lend out, rather than use for their own consumption. ...
Module 32 Money, Output, and Prices in the Long Run
... prices in the economy—prices of final goods and services and also factor prices, such as nominal wage rates—double. And suppose the money supply doubles at the same time. What difference does this make to the economy in real terms? None. All real variables in the economy—such as real GDP and the rea ...
... prices in the economy—prices of final goods and services and also factor prices, such as nominal wage rates—double. And suppose the money supply doubles at the same time. What difference does this make to the economy in real terms? None. All real variables in the economy—such as real GDP and the rea ...
Determinants of Inflation: A Case Study of Iran
... emphasizes on the increase in aggregate demand as the source of inflation. The aggregate demand consists of consumption, investment, government expenditure and net export. When the value of aggregate demand exceeds the value of aggregate supply at the full employment level, the inflationary gap aris ...
... emphasizes on the increase in aggregate demand as the source of inflation. The aggregate demand consists of consumption, investment, government expenditure and net export. When the value of aggregate demand exceeds the value of aggregate supply at the full employment level, the inflationary gap aris ...
Market Potential and the Rise of US Productivity
... finding evidence that industrial tariffs were associated with higher productivity growth in the industrial sector in the late nineteenth century especially in the most economically advanced countries. This literature argues that the historical evidence is consistent with learning-by-doing and other ...
... finding evidence that industrial tariffs were associated with higher productivity growth in the industrial sector in the late nineteenth century especially in the most economically advanced countries. This literature argues that the historical evidence is consistent with learning-by-doing and other ...
Say`s Law - Wake Forest University
... Note that this point, if it were correct, ‘‘proves too much’’. Malthus seems to suppose that aggregate demand is composed of just two elements, labourers’ consumption and capitalists’ consumption, and that accumulation in the first instance leaves the former unchanged while reducing the latter. But ...
... Note that this point, if it were correct, ‘‘proves too much’’. Malthus seems to suppose that aggregate demand is composed of just two elements, labourers’ consumption and capitalists’ consumption, and that accumulation in the first instance leaves the former unchanged while reducing the latter. But ...
Aggregate Demand and Aggregate Supply
... 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 ...
THE THEORY OF THE GLOBAL “SAVINGS GLUT”
... and exchange rate, will have, as we have seen, an income contracting effect for the world economy. If incomes do not contract because of countervailing measures, even then there is no reason for the base values of the three variables anywhere to change at all. It follows that if we notice an expansi ...
... and exchange rate, will have, as we have seen, an income contracting effect for the world economy. If incomes do not contract because of countervailing measures, even then there is no reason for the base values of the three variables anywhere to change at all. It follows that if we notice an expansi ...
Greece: Military Expenditure, Economic Growth
... a particularly suitable vehicle for empirical investigation since for many years it has been allocating a relatively high proportion of its national income to defence. Compared to other countries in NATO and the EU its defence burden (military expenditure as a share of GDP) is often twice as high. A ...
... a particularly suitable vehicle for empirical investigation since for many years it has been allocating a relatively high proportion of its national income to defence. Compared to other countries in NATO and the EU its defence burden (military expenditure as a share of GDP) is often twice as high. A ...
Competition within sectors in France
... economic activity and creates jobs by improving purchasing power and spurring firms to innovate2. In this context, there is a need for indicators allowing us to identify clearly those sectors of the economy for which competition could be increased. Among the most commonly used indicators are the deg ...
... economic activity and creates jobs by improving purchasing power and spurring firms to innovate2. In this context, there is a need for indicators allowing us to identify clearly those sectors of the economy for which competition could be increased. Among the most commonly used indicators are the deg ...
Growth accelerations in developing countries: Uganda and
... This was accompanied by the abolition of marketing boards so that supply and demand could meet more freely. An overvalued exchange rate benefits the local elite that have access to cheap imports most. Museveni therefore attacked through market reforms the privileged access to rents and productive se ...
... This was accompanied by the abolition of marketing boards so that supply and demand could meet more freely. An overvalued exchange rate benefits the local elite that have access to cheap imports most. Museveni therefore attacked through market reforms the privileged access to rents and productive se ...
Government Size and Growth: A Survey and Interpretation of the
... studies that examine the link between economic freedom (measured in several different ways) and growth. They conclude that economic freedom ―has a robust positive effect on economic growth regardless of how it is measured‖ (p. 68). Berggren and Jordahl (2005) compare different types of economic free ...
... studies that examine the link between economic freedom (measured in several different ways) and growth. They conclude that economic freedom ―has a robust positive effect on economic growth regardless of how it is measured‖ (p. 68). Berggren and Jordahl (2005) compare different types of economic free ...
Lack of regional convergence
... complementarity between technology and other factors that take part in the growth process. Technological know-how is described as a rather local affair, embedded in firms, organizations, networks and so on, dependent on specific assets of various types that are not easily forthcoming. This leads to ...
... complementarity between technology and other factors that take part in the growth process. Technological know-how is described as a rather local affair, embedded in firms, organizations, networks and so on, dependent on specific assets of various types that are not easily forthcoming. This leads to ...
The Income-Expenditure Model
... • U.S. imports increased along with output during this period. • The increased demand fueled exports in foreign countries and promoted their growth. Studies have shown that the increase in demand for foreign goods was actually more pronounced for developing countries than for developed countries. Co ...
... • U.S. imports increased along with output during this period. • The increased demand fueled exports in foreign countries and promoted their growth. Studies have shown that the increase in demand for foreign goods was actually more pronounced for developing countries than for developed countries. Co ...
NBER WORKING PAPER SERIES THE ROLE OF FINANCIAL STRUCTURE
... In that model negative external shocks lead to involuntary unemployment because of the combination of downward nominal wage rigidity and a currency peg. The mechanism is as follows. Consider the economy’s adjustment to a negative tradable output shock, such as a deterioration in the terms of trade. ...
... In that model negative external shocks lead to involuntary unemployment because of the combination of downward nominal wage rigidity and a currency peg. The mechanism is as follows. Consider the economy’s adjustment to a negative tradable output shock, such as a deterioration in the terms of trade. ...
Agricultural Productivity and Growth in Turkey
... in per capita income among European countries. The study stresses that if Turkey had inherited Spanish agricultural productivity growth from 1968 to 2005, the growth rate of aggregate GDP per capita would have ...
... in per capita income among European countries. The study stresses that if Turkey had inherited Spanish agricultural productivity growth from 1968 to 2005, the growth rate of aggregate GDP per capita would have ...
Chapter 10: The Circular Flow Model
... product produced). The total spending by both groups of spenders (called aggregate demand) is now $200,000. This is composed of $180,000 of consumption and $20,000 of business investment spending. This exactly equals the Potential Real GDP of $200,000. People are buying everything that can be produc ...
... product produced). The total spending by both groups of spenders (called aggregate demand) is now $200,000. This is composed of $180,000 of consumption and $20,000 of business investment spending. This exactly equals the Potential Real GDP of $200,000. People are buying everything that can be produc ...
A-level Economics Mark scheme Unit 02 - The National
... make use of this material when developing their answers. It is anticipated that good answers will analyse the likely impact of increased spending on construction in both the short run and the long run, taking into account both the demand–side and supply-side consequences. Such answers are likely to ...
... make use of this material when developing their answers. It is anticipated that good answers will analyse the likely impact of increased spending on construction in both the short run and the long run, taking into account both the demand–side and supply-side consequences. Such answers are likely to ...
economic disruption, malthusian fertility, and economic growth
... In Eastern and Central Europe and the former Soviet Union, however, “Malthusian” effects have reemerged following the fall of communism. Indeed, the transition of communist countries to market-oriented economies in the 1990s, like the Great Depression in the 1930s, generated a sharp decline in real ...
... In Eastern and Central Europe and the former Soviet Union, however, “Malthusian” effects have reemerged following the fall of communism. Indeed, the transition of communist countries to market-oriented economies in the 1990s, like the Great Depression in the 1930s, generated a sharp decline in real ...
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.