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Real interest rates and international capital flowsThere is more to international exchange than the flow of goods and services across borders: financial assets are also exchanged. When there are differences in real interest rates between two countries that allow for the flow of financial capital, that capital flows to the country with the relatively higher real interest rate and out of the country with the relatively lower real interest...0 Commentaires 0 Parts 12KB Vue 0 Aperçu
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Shifts in aggregate demandKey points The aggregate demand/aggregate supply model is a model that shows what determines total supply or total demand for the economy and how total demand and total supply interact at the macroeconomic level. The aggregate demand curve, or AD curve, shifts to the right as the components of aggregate demand—consumption spending, investment spending,...0 Commentaires 0 Parts 11KB Vue 0 Aperçu
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The expenditure-output, or Keynesian cross, modelKey points The expenditure-output model, or Keynesian cross diagram, shows how the level of aggregate expenditure varies with the level of economic output. The equilibrium in the diagram occurs where the aggregate expenditure line crosses the 45-degree line, which represents the set of points where aggregate expenditure in the economy is equal to output, or national income....0 Commentaires 0 Parts 13KB Vue 0 Aperçu
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The expenditure-output, or Keynesian cross, modelKey points The expenditure-output model, or Keynesian cross diagram, shows how the level of aggregate expenditure varies with the level of economic output. The equilibrium in the diagram occurs where the aggregate expenditure line crosses the 45-degree line, which represents the set of points where aggregate expenditure in the economy is equal to output, or national income....0 Commentaires 0 Parts 11KB Vue 0 Aperçu
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The Keynesian perspective on market forcesKey points The Keynesian prescription for stabilizing the economy implies government intervention at the macroeconomic level—increasing aggregate demand when private demand falls and decreasing aggregate demand when private demand rises. This does not, however, imply that the government should be passing laws or regulations that set prices and quantities in...0 Commentaires 0 Parts 11KB Vue 0 Aperçu
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The Phillips curve in the Keynesian perspectiveKey points A Phillips curve shows the tradeoff between unemployment and inflation in an economy. Keynesian macroeconomics argues that the solution to a recession is expansionary fiscal policy that shifts the aggregate demand curve to the right. The other side of Keynesian policy occurs when the economy is operating above potential GDP. In this situation, unemployment is...0 Commentaires 0 Parts 11KB Vue 0 Aperçu
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Using a person's budget to understand the balance of paymentsTo get a better understanding of the balance of payments accounts, let’s think of a single person’s sources of funds and uses of funds. We can summarize Harry’s budget for this month as shown in the table below: Source of funds or use of funds Amount Income earned from selling copies of his book “Talking to snakes for fun and profit”...0 Commentaires 0 Parts 11KB Vue 0 Aperçu
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What Causes Inflation?What Causes Inflation? Inflation—the general rise in the price level of goods and services over time—is one of the most closely watched economic indicators. It affects households, businesses, and governments alike, influencing the cost of living, purchasing power, and investment decisions. While moderate inflation is considered normal in a growing economy, high or unpredictable...0 Commentaires 0 Parts 134 Vue 0 Aperçu
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Why Global Supply Chains May Never Be the Same. (2022)Every day, millions of sailors, truck drivers, longshoremen, warehouse workers and delivery drivers keep mountains of goods moving into stores and homes to meet consumers’ increasing expectations of convenience. But this complex movement of goods underpinning the global economy is far more vulnerable than many imagined. My Link0 Commentaires 0 Parts 28KB Vue 0 Aperçu
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