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Economic Growth - Foothill College
... Others point out that unemployment and weak economies (recessions) have coincided with increases in military spending and tight labor markets and strong economies (expansions) have coincided with declining military spending. The exceptions, like 1953-54 when military spending fell and unemployment g ...
... Others point out that unemployment and weak economies (recessions) have coincided with increases in military spending and tight labor markets and strong economies (expansions) have coincided with declining military spending. The exceptions, like 1953-54 when military spending fell and unemployment g ...
Price Theory
... Note that if the firm has additional costs of labor, then the MC of labor may be higher. But also note that some costs of labor do not vary by the hour (e.g., if you provide health insurance, that varies by the number of workers, not worker hours) and therefore do not affect the MC of labor. What is ...
... Note that if the firm has additional costs of labor, then the MC of labor may be higher. But also note that some costs of labor do not vary by the hour (e.g., if you provide health insurance, that varies by the number of workers, not worker hours) and therefore do not affect the MC of labor. What is ...
The 'Advantage of Tying One's Hands' revisited: What have we learnt about commitment devices in policymaking?
... Also, goods and financial market integration determine the extent to which a higher expected growth rate at home, relative to that abroad, is reflected in ca ...
... Also, goods and financial market integration determine the extent to which a higher expected growth rate at home, relative to that abroad, is reflected in ca ...
Slide 1
... Domestic constraints to growth: Domestic savings have been lower than investment, putting pressure on an investment-driven growth; Returns on investment have been diminishing; Labor force is likely to shrink reflecting demographic trends. ...
... Domestic constraints to growth: Domestic savings have been lower than investment, putting pressure on an investment-driven growth; Returns on investment have been diminishing; Labor force is likely to shrink reflecting demographic trends. ...
Economic Factors Influencing Design
... willing to pay higher prices for those goods, and more workers will work on making them. In time, this will create a shortage of consumer goods, and workers will be drawn back toward making them. Likewise, when there's more demand for land, the land factories gear up and crank out more land -- or, w ...
... willing to pay higher prices for those goods, and more workers will work on making them. In time, this will create a shortage of consumer goods, and workers will be drawn back toward making them. Likewise, when there's more demand for land, the land factories gear up and crank out more land -- or, w ...
Classic theories of Economic development : A comparative analysis
... savings that are made into investment. Again such investments may not necessarily yield growth as growth also necessitates other requirements to convert new capital into higher levels of output. They include well integrated money and capital markets, highly developed transport facilities, well train ...
... savings that are made into investment. Again such investments may not necessarily yield growth as growth also necessitates other requirements to convert new capital into higher levels of output. They include well integrated money and capital markets, highly developed transport facilities, well train ...
1. What Determines the Total Production of Goods and Services
... Æ ( P × MPL) = W Æ MPL = W / P Æ Marginal product of labor = real wage - Firm’s labor demand curve = MPL schedule Æ For any given real wage, the firm hires up to the point at which the MPL equals the real wage (fig. 3-4, p.50) - Marginal Product of Capital (MPK): the extra amount of output the firm ...
... Æ ( P × MPL) = W Æ MPL = W / P Æ Marginal product of labor = real wage - Firm’s labor demand curve = MPL schedule Æ For any given real wage, the firm hires up to the point at which the MPL equals the real wage (fig. 3-4, p.50) - Marginal Product of Capital (MPK): the extra amount of output the firm ...
POTENTIAL OUTPUT and LONG RUN AGGREGATE SUPPLY
... labor being made available to labor markets at higher real wages. However, before we discuss equilibrium conditions, we need to take a look at the determinants of labor demand. Labor Demand The demand for labor results from the producer of a particular good ‘X’ seeking labor input as one of several ...
... labor being made available to labor markets at higher real wages. However, before we discuss equilibrium conditions, we need to take a look at the determinants of labor demand. Labor Demand The demand for labor results from the producer of a particular good ‘X’ seeking labor input as one of several ...
One-Period Macro Model
... purchases can be used to stabilize GDP and business cycles. (ii) Increase in G alone, then dY/dG > 0 and dy/dC > 0 “welfare” increases. (iii) If G = T, then dY/dG = 1 and dY/dC = 0. dC/dG = 0 “welfare” constant. (iv) CE dC/dG < 0 and welfare decreases! ...
... purchases can be used to stabilize GDP and business cycles. (ii) Increase in G alone, then dY/dG > 0 and dy/dC > 0 “welfare” increases. (iii) If G = T, then dY/dG = 1 and dY/dC = 0. dC/dG = 0 “welfare” constant. (iv) CE dC/dG < 0 and welfare decreases! ...
Midterm #1
... accountants, and telemarketers and call it all “labor”, and disregard any effect that might come about because these are not the same kind of labor. We combine the contribution of printing presses, computers, cement trucks, and hospital equipment and call it all “capital”, and disregard any effect t ...
... accountants, and telemarketers and call it all “labor”, and disregard any effect that might come about because these are not the same kind of labor. We combine the contribution of printing presses, computers, cement trucks, and hospital equipment and call it all “capital”, and disregard any effect t ...
... For the Cobb-Douglas case, Yˆ Aˆ Kˆ (1 ) Lˆ . As long as, Aˆ 0 and/or Kˆ 0 , output grows. Labor (employment) growth is not necessary. 3. Suppose that a country’s production function is defined as Y AK L1 . From 1999 to 2000 a country's output rose from 4000 to 4500, its capital ...
... For the Cobb-Douglas case, Yˆ Aˆ Kˆ (1 ) Lˆ . As long as, Aˆ 0 and/or Kˆ 0 , output grows. Labor (employment) growth is not necessary. 3. Suppose that a country’s production function is defined as Y AK L1 . From 1999 to 2000 a country's output rose from 4000 to 4500, its capital ...
Employment and Wages 1
... The CPI market basket represents all the consumer goods and services purchased by urban households. Price data are collected for over 180 categories, which BLS has grouped into 8 major groups. These major groups, with examples of categories in each, are as follows: • Food and beverages (ham, eggs, c ...
... The CPI market basket represents all the consumer goods and services purchased by urban households. Price data are collected for over 180 categories, which BLS has grouped into 8 major groups. These major groups, with examples of categories in each, are as follows: • Food and beverages (ham, eggs, c ...
Homework Assignment 1
... A1. Use these numbers to calculate actual and balanced growth path labor productivity and capital productivity in period 1. Use capital productivity to calculate the growth rate of the capital-labor ratio in period 1. Calculate technology and the capital labor ratio in period. 2. Repeat. Calculate t ...
... A1. Use these numbers to calculate actual and balanced growth path labor productivity and capital productivity in period 1. Use capital productivity to calculate the growth rate of the capital-labor ratio in period 1. Calculate technology and the capital labor ratio in period. 2. Repeat. Calculate t ...
3. Labor Demand 3A. Labor Demand Model 3B. Short
... 3A. Model (cont.) 4. Firms are price-takers in input and output markets. Then marginal cost equals price and marginal revenue equals price. Relax to allow: Monopoly: Price-maker in output good market Monopsony: Price-maker in input good market ...
... 3A. Model (cont.) 4. Firms are price-takers in input and output markets. Then marginal cost equals price and marginal revenue equals price. Relax to allow: Monopoly: Price-maker in output good market Monopsony: Price-maker in input good market ...
Ch.5 Vocabulary Quiz _____ Name period A. Law of supply H
... _____1. A tax on the production or sale of a good. _____2. The cost of operating a facility, such as a store or factory. _____3. A chart that lists how much of a good a supplier will offer at different prices. _____4. A cost that does not change, no matter how much of a good is produced. _____5. A g ...
... _____1. A tax on the production or sale of a good. _____2. The cost of operating a facility, such as a store or factory. _____3. A chart that lists how much of a good a supplier will offer at different prices. _____4. A cost that does not change, no matter how much of a good is produced. _____5. A g ...
Growth Theories
... grows, Gini Coefficient generally rises first and then fall • It is in line with Lewis’ theory: Income inequality is not only inevitable, but also necessary for economic growth - Case studies of Korea, Japan, and China (presentation) ...
... grows, Gini Coefficient generally rises first and then fall • It is in line with Lewis’ theory: Income inequality is not only inevitable, but also necessary for economic growth - Case studies of Korea, Japan, and China (presentation) ...
Economics 302
... c. (.25 poins) Suppose the government imposes a tariff of $50 per unit on this good but the economy remains open to trade. How many units of the good will be imported or exported by this economy given the imposition of this tariff? ...
... c. (.25 poins) Suppose the government imposes a tariff of $50 per unit on this good but the economy remains open to trade. How many units of the good will be imported or exported by this economy given the imposition of this tariff? ...
Macroeconomic Theory
... (or increase exports) must also have an effect on at least one of the other variables in the system. If exports were to remain the same, then domestic savings must increase relative to domestic investment. The specifics will depend on whether the proposal would lead to changes in income or changes i ...
... (or increase exports) must also have an effect on at least one of the other variables in the system. If exports were to remain the same, then domestic savings must increase relative to domestic investment. The specifics will depend on whether the proposal would lead to changes in income or changes i ...
Microeconomics I
... In a world of two goods, both cannot be inferior; both cannot be luxury goods. ...
... In a world of two goods, both cannot be inferior; both cannot be luxury goods. ...
Post-Fordist - Cloudfront.net
... a process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment. ...
... a process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment. ...
Chapter 3: National Income Accounting
... Diminishing Marginal Product of Labor As more labor input is added, holding capital input constant, the quantity of output will increase at a decreasing rate. Hence, MPL declines, due to inefficiency, as more labor is added. Units of output ...
... Diminishing Marginal Product of Labor As more labor input is added, holding capital input constant, the quantity of output will increase at a decreasing rate. Hence, MPL declines, due to inefficiency, as more labor is added. Units of output ...
Fei–Ranis model of economic growth
![](https://commons.wikimedia.org/wiki/Special:FilePath/Phases.jpg?width=300)
The Fei–Ranis model of economic growth is a dualism model in developmental economics or welfare economics that has been developed by John C. H. Fei and Gustav Ranis and can be understood as an extension of the Lewis model. It is also known as the Surplus Labor model. It recognizes the presence of a dual economy comprising both the modern and the primitive sector and takes the economic situation of unemployment and underemployment of resources into account, unlike many other growth models that consider underdeveloped countries to be homogenous in nature. According to this theory, the primitive sector consists of the existing agricultural sector in the economy, and the modern sector is the rapidly emerging but small industrial sector. Both the sectors co-exist in the economy, wherein lies the crux of the development problem. Development can be brought about only by a complete shift in the focal point of progress from the agricultural to the industrial economy, such that there is augmentation of industrial output. This is done by transfer of labor from the agricultural sector to the industrial one, showing that underdeveloped countries do not suffer from constraints of labor supply. At the same time, growth in the agricultural sector must not be negligible and its output should be sufficient to support the whole economy with food and raw materials. Like in the Harrod–Domar model, saving and investment become the driving forces when it comes to economic development of underdeveloped countries.