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AD–AS Model
The AD–AS or aggregate demand–aggregate supply model is a macroeconomic model that explains price level and output (economics), output through the relationship of aggregate demand (AD) and aggregate supply (AS). It is based on the theory of John Maynard Keynes presented in his work ''The General Theory of Employment, Interest and Money''. It is one of the primary simplified representations in the modern field of macroeconomics, and is used by a broad array of economists, from Libertarianism, libertarian, monetarist supporters of laissez-faire, such as Milton Friedman, to Post-Keynesian economics, post-Keynesian supporters of economic interventionism, such as Joan Robinson. Modeling The AD/AS model is used to illustrate the Keynesian economics, Keynesian model of the business cycle. Movements of the two curves can be used to predict the effects that various exogenous variable, exogenous events will have on two variables: real GDP and the price level. Furthermore, the model ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
AS + AD Graph
As, AS, A. S., A/S or similar may refer to: Art, entertainment, and media * A. S. Byatt (born 1936), English critic, novelist, poet and short story writer * As (song), "As" (song), by Stevie Wonder * , a Spanish sports newspaper * , an academic male voice choir of Helsinki, Finland * Adult Swim, a programming block on Cartoon Network Business legal structures * , a Czech form of joint-stock company * , a Slovak form of joint-stock company * or ''A/S'', a type of Danish stock-based company * or ''AS'', a type of Norwegian stock-based company Businesses and organizations * A.S. Roma, an Italian football club * Alaska Airlines, IATA airline designator * Armée secrète (Belgium), (Belgium), a World War II resistance organization * ''Diario AS'', a Spanish daily sports newspaper that concentrates particularly on football - branded as AS * KK AS Basket, a Serbian basketball club * , a French resistance organization * Oakland Athletics, an American baseball team referred to as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Cycle
Business cycles are intervals of Economic expansion, expansion followed by recession in economic activity. These changes have implications for the welfare of the broad population as well as for private institutions. Typically business cycles are measured by examining trends in a broad economic indicator such as Real Gross Domestic Production. Business cycle fluctuations are usually characterized by general upswings and downturns in a span of macroeconomic variables. The individual episodes of expansion/recession occur with changing duration and intensity over time. Typically their periodicity has a wide range from around 2 to 10 years (the technical phrase "stochastic cycle" is often used in statistics to describe this kind of process.) As in [Harvey, Trimbur, and van Dijk, 2007, ''Journal of Econometrics''], such flexible knowledge about the frequency of business cycles can actually be included in their mathematical study, using a Bayesian statistical paradigm. There are numer ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Potential Output
In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real gross domestic product (potential output) that can be sustained over the long term. Actual output happens in real life while potential output shows the level that could be achieved. Limits to output Natural (physical, etc) and institutional constraints impose limits to growth. If actual GDP rises and stays above potential output, then, in a free market economy (i.e. in the absence of wage and price controls), inflation tends to increase as demand for factors of production exceeds supply. This is because of the finite supply of workers and their time, of capital equipment, and of natural resources, along with the limits of our technology and our management skills. Graphically, the expansion of output beyond the natural limit can be seen as a shift of production volume above the optimum quantity on the average cost curve. Likewise, if GDP persists below natural G ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Factors Of Production
In economics, factors of production, resources, or inputs are what is used in the production process to produce output—that is, goods and services. The utilized amounts of the various inputs determine the quantity of output according to the relationship called the production function. There are four ''basic'' resources or factors of production: land, labour, capital and entrepreneur (or enterprise). The factors are also frequently labeled "producer goods or services" to distinguish them from the goods or services purchased by consumers, which are frequently labeled "consumer goods". There are two types of factors: ''primary'' and ''secondary''. The previously mentioned primary factors are land, labour and capital. Materials and energy are considered secondary factors in classical economics because they are obtained from land, labour, and capital. The primary factors facilitate production but neither becomes part of the product (as with raw materials) nor becomes significantly tra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Full Employment
Full employment is a situation in which there is no cyclical or unemployment#Cyclical unemployment, deficient-demand unemployment. Full employment does not entail the disappearance of all unemployment, as other kinds of unemployment, namely Structural unemployment, structural and Frictional unemployment, frictional, may remain. For instance, workers who are "between jobs" for short periods of time as they search for better employment are not counted against full employment, as such unemployment is frictional rather than cyclical. An economy with full employment might also have unemployment or underemployment where part-time workers cannot find jobs appropriate to their skill level, as such unemployment is considered structural rather than cyclical. Full employment marks the point past which expansionary fiscal and/or monetary policy cannot reduce unemployment any further without causing inflation. Some economists define full employment somewhat differently, as the unemployment rate ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Law Of Diminishing Returns
In economics, diminishing returns are the decrease in marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors of production equal (ceteris paribus). The law of diminishing returns (also known as the law of diminishing marginal productivity) states that in productive processes, increasing a factor of production by one unit, while holding all other production factors constant, will at some point return a lower unit of output per incremental unit of input. The law of diminishing returns does not cause a decrease in overall production capabilities, rather it defines a point on a production curve whereby producing an additional unit of output will result in a loss and is known as negative returns. Under diminishing returns, output remains positive, however productivity and efficiency decrease. The modern understanding of the law adds the dimension of holding other outputs equal, since a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Depression
An economic depression is a period of carried long-term economical downturn that is result of lowered economic activity in one major or more national economies. Economic depression maybe related to one specific country were there is some economic crisis that has worsened but most often reflexes historically the American Great Depression and similar economic status that may be recognized as existing at some country, several countries or even in many countries. It is often understood in economics that economic crisis and the following recession that maybe named economic depression are part of economic cycles where slowdown of economy follows the economic growth and vice versa. It is a result of more severe economic problems or a ''downturn'' than the recession itself, which is a slowdown in economic activity over the course of the normal business cycle of growing economy. Economic depressions maybe also characterized by their length or duration, and maybe showing increases in unemplo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Government Spending
Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government Gross fixed capital formation, gross capital formation). These two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product. Government spending can be financed by government borrowing, taxes, custom duties, the sale or lease of natural resources, and various fees like national park entry fees or licensing fees. When Governments choose to borrow money, they have to gov ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Money Supply
In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include Circulation (currency), currency in circulation (i.e. physical cash) and demand deposits (depositors' easily accessed assets on the books of financial institutions). The central bank of a country may use a definition of what constitutes legal tender for its purposes. Money supply data is recorded and published, usually by a government agency or the central bank of the country. Public sector, Public and private sector analysts monitor changes in the money supply because of the belief that such changes affect the price levels of Security (finance), securities, inflation, the exchange rates, and the business cycle. The relationship between money and prices has historically been associated with the quantity theory of money. There is some empirical evidence of a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
AS AD (2)
As, AS, A. S., A/S or similar may refer to: Art, entertainment, and media * A. S. Byatt (born 1936), English critic, novelist, poet and short story writer * "As" (song), by Stevie Wonder * , a Spanish sports newspaper * , an academic male voice choir of Helsinki, Finland * Adult Swim, a programming block on Cartoon Network Business legal structures * , a Czech form of joint-stock company * , a Slovak form of joint-stock company * or ''A/S'', a type of Danish stock-based company * or ''AS'', a type of Norwegian stock-based company Businesses and organizations * A.S. Roma, an Italian football club * Alaska Airlines, IATA airline designator * (Belgium), a World War II resistance organization * ''Diario AS'', a Spanish daily sports newspaper that concentrates particularly on football - branded as AS * KK AS Basket, a Serbian basketball club * , a French resistance organization * Oakland Athletics, an American baseball team referred to as the A's * Australian Standards, a s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
AS AD
As, AS, A. S., A/S or similar may refer to: Art, entertainment, and media * A. S. Byatt (born 1936), English critic, novelist, poet and short story writer * "As" (song), by Stevie Wonder * , a Spanish sports newspaper * , an academic male voice choir of Helsinki, Finland * Adult Swim, a programming block on Cartoon Network Business legal structures * , a Czech form of joint-stock company * , a Slovak form of joint-stock company * or ''A/S'', a type of Danish stock-based company * or ''AS'', a type of Norwegian stock-based company Businesses and organizations * A.S. Roma, an Italian football club * Alaska Airlines, IATA airline designator * (Belgium), a World War II resistance organization * ''Diario AS'', a Spanish daily sports newspaper that concentrates particularly on football - branded as AS * KK AS Basket, a Serbian basketball club * , a French resistance organization * Oakland Athletics, an American baseball team referred to as the A's * Australian Standards, a s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
