The Illustrated Consumer and Producer Surplus
... Slide 34 The price has increased to $8. Point out that this affects two groups. The producers who would have sold gadgets at $7 are gaining extra producer surplus. In a addition, at the higher price new producers are willing to sell an additional one hundred gadgets. Slide 35 Shows how the ext ...
... Slide 34 The price has increased to $8. Point out that this affects two groups. The producers who would have sold gadgets at $7 are gaining extra producer surplus. In a addition, at the higher price new producers are willing to sell an additional one hundred gadgets. Slide 35 Shows how the ext ...
Macroeconomics Chamberlin and Yueh
... • In the long run, the willingness of firms to produce does not depend on the price level, and therefore the aggregate supply function is vertical. • Aggregate supply in the short run, though, is different. In this case, it is argued that the schedule is upward-sloping, so supply rises with prices. ...
... • In the long run, the willingness of firms to produce does not depend on the price level, and therefore the aggregate supply function is vertical. • Aggregate supply in the short run, though, is different. In this case, it is argued that the schedule is upward-sloping, so supply rises with prices. ...
2. A More Realistic Aggregate Demand
... movements along the AS curve. For example, with a general economic expansion there would be increases in the demands for factors. Tighter labour markets would bring higher wages; interest rates would increase with greater demand for credit; and market-clearing prices for raw materials would rise. Up ...
... movements along the AS curve. For example, with a general economic expansion there would be increases in the demands for factors. Tighter labour markets would bring higher wages; interest rates would increase with greater demand for credit; and market-clearing prices for raw materials would rise. Up ...
Finance and Economics Discussion Series Federal Reserve Board, Washington, D.C.
... features for production, capital evolution, and preference technologies. Section 2 defines the equilibrium of the model. Section 3 lists the data that is used in estimating the model. Section 4 reports the model’s key estimation results, which include the estimated parameter values, variance decompo ...
... features for production, capital evolution, and preference technologies. Section 2 defines the equilibrium of the model. Section 3 lists the data that is used in estimating the model. Section 4 reports the model’s key estimation results, which include the estimated parameter values, variance decompo ...
The Interaction between Household and Firm Dynamics and the
... cost of capital, and because there is an anticipated upward trend in the price level following the initial decrease, which means that new …rms expect that it will be easier to repay their long-term debt. In the third exercise, we simulate the transition dynamics following simultaneous shocks to hou ...
... cost of capital, and because there is an anticipated upward trend in the price level following the initial decrease, which means that new …rms expect that it will be easier to repay their long-term debt. In the third exercise, we simulate the transition dynamics following simultaneous shocks to hou ...
chapter overview - Amazon Web Services
... The aggregate expenditures model developed in Chapter 9 is a fixed price level model. Its focus is on changes in real GDP, not on changes in the price level. This chapter introduces a variable-price model in which it is possible to simultaneously analyze changes in real GDP and the price level. This ...
... The aggregate expenditures model developed in Chapter 9 is a fixed price level model. Its focus is on changes in real GDP, not on changes in the price level. This chapter introduces a variable-price model in which it is possible to simultaneously analyze changes in real GDP and the price level. This ...
An Evaluation of the Competitiveness of the Productive and Non
... {Interior Savannah} consisting mostly of mountains that gradually rise to the Brazilian border. Guyana's main mountains are contained here, including Mount Ayanganna (6,699 ft (2,042 m)) and on Mount Roraima (9,301 ft (2,835 m) – the highest mountain in Guyana) on the Brazil-Guyana-Venezuela tripoin ...
... {Interior Savannah} consisting mostly of mountains that gradually rise to the Brazilian border. Guyana's main mountains are contained here, including Mount Ayanganna (6,699 ft (2,042 m)) and on Mount Roraima (9,301 ft (2,835 m) – the highest mountain in Guyana) on the Brazil-Guyana-Venezuela tripoin ...
Development Study for Information Technology in Bosnia
... the developed and developing nations, Information and Communication Technologies (ICT), plays an increasingly important role not only within national economic structures but also within regional market stability. It is this regional market stability that is the primary support mechanism for internat ...
... the developed and developing nations, Information and Communication Technologies (ICT), plays an increasingly important role not only within national economic structures but also within regional market stability. It is this regional market stability that is the primary support mechanism for internat ...
- Rainer Maurer
... that within a production period ("one year") the capital stock is constant, because current investment in capital It needs to be installed first, before it can become productive. Therefore It enters the capital stock not in period t ("this year"), but in period t+1 ("next year"). ■ Furthermore, the ...
... that within a production period ("one year") the capital stock is constant, because current investment in capital It needs to be installed first, before it can become productive. Therefore It enters the capital stock not in period t ("this year"), but in period t+1 ("next year"). ■ Furthermore, the ...
Wage Rigidity in the Great Depression June, 2012 Christopher Hanes Department of Economics
... and the mild downturns of the mid-1920s. Hanes (1996) shows that real consumption wages were countercyclical before 1914, as well as in the interwar era. He argues that the long-term historical trend toward procyclicality in in real wages could have resulted from an unchanging degree of nominal wage ...
... and the mild downturns of the mid-1920s. Hanes (1996) shows that real consumption wages were countercyclical before 1914, as well as in the interwar era. He argues that the long-term historical trend toward procyclicality in in real wages could have resulted from an unchanging degree of nominal wage ...
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... also show that the cost of migrating from one economy to the other has an ambiguous impact on the price of the good produced in the sector associated with a low social status. In Section 4, we investigate the repercussions of migration in the extended framework developed in Section 3. We show that m ...
... also show that the cost of migrating from one economy to the other has an ambiguous impact on the price of the good produced in the sector associated with a low social status. In Section 4, we investigate the repercussions of migration in the extended framework developed in Section 3. We show that m ...
Alternative Methods for Measuring Productivity Growth Including
... goods, i = 1,... n. We do not assume any particular form for U, but we do assume that the utility function is smooth and homothetic. Under this assumption, we can construct indexes of real income changes by taking the weighted average growth of individual components. It will be convenient to simplif ...
... goods, i = 1,... n. We do not assume any particular form for U, but we do assume that the utility function is smooth and homothetic. Under this assumption, we can construct indexes of real income changes by taking the weighted average growth of individual components. It will be convenient to simplif ...
Index of National Fundraising Performance
... This means that as the economy slows down, not only does giving slow down as well, but it also declines as a proportion of the average American’s spending dollar. In recessionary periods, financially-strapped people shift their spending priorities away from charities, compounding the effects of an e ...
... This means that as the economy slows down, not only does giving slow down as well, but it also declines as a proportion of the average American’s spending dollar. In recessionary periods, financially-strapped people shift their spending priorities away from charities, compounding the effects of an e ...
Productivity Brief 2015
... Because of the moderation in productivity growth in most global regions, the relative contribution of emerging and developing economies to world productivity growth increased marginally from 1.7 in 2013 to 1.8 percentage points in 2014, while the contribution of the mature economies declined from 0. ...
... Because of the moderation in productivity growth in most global regions, the relative contribution of emerging and developing economies to world productivity growth increased marginally from 1.7 in 2013 to 1.8 percentage points in 2014, while the contribution of the mature economies declined from 0. ...
norface08 Alho 8162004 en
... nominal convergence in relative wages and prices, i.e. real appreciation. The inflationary development in the new member countries is also vital, e.g., from the point of view of ECB monetary policy and the entrance of the new member countries into the Economic and Monetary Union. See Figures 1 and 2 ...
... nominal convergence in relative wages and prices, i.e. real appreciation. The inflationary development in the new member countries is also vital, e.g., from the point of view of ECB monetary policy and the entrance of the new member countries into the Economic and Monetary Union. See Figures 1 and 2 ...
International Doctorate in Economic Analysis Departament d’Economia i d’Història Econòmica
... more likely to become liquidity constrained thus finding it hard to optimally smoothen their consumption along time. In turn, fiscal shocks will have relatively more pronounced effects on private demand during bad times. The seminal work of Perotti (1999) is one of the first attempts to document sta ...
... more likely to become liquidity constrained thus finding it hard to optimally smoothen their consumption along time. In turn, fiscal shocks will have relatively more pronounced effects on private demand during bad times. The seminal work of Perotti (1999) is one of the first attempts to document sta ...
PERUVIAN ECONOMIC ASSOCIATION Spillovers, capital flows and prudential regulation in
... and non-tradable sectors of the economy. Entrepreneurs face borrowing constraints to finance both production and the acquisition of capital. Workers and entrepreneurs consume a basket of tradable and non-tradable goods. We introduce two types of durable goods, houses and capital and both serve as co ...
... and non-tradable sectors of the economy. Entrepreneurs face borrowing constraints to finance both production and the acquisition of capital. Workers and entrepreneurs consume a basket of tradable and non-tradable goods. We introduce two types of durable goods, houses and capital and both serve as co ...
Innovation and employment
... lower prices, which in turn imply rising demand and therefore additional production and employment [5]. However, this line of reasoning does not take into account possible demand rigidities. For instance, pessimistic expectations by firms may delay expenditure decisions, resulting in lower demand el ...
... lower prices, which in turn imply rising demand and therefore additional production and employment [5]. However, this line of reasoning does not take into account possible demand rigidities. For instance, pessimistic expectations by firms may delay expenditure decisions, resulting in lower demand el ...
Fei–Ranis model of economic growth
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.