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This theory was suggested initially by the author Ian Bremmer, in his book The J Curve: A New Way to Understand Why Nations Rise and Fall. The x-axis of the political J curve graph measures the 'openness' of the economy in question and the y-axis measures the stability of that same state.
Terms of trade (TOT) is a measure of how much imports an economy can get for a unit of exported goods. For example, if an economy is only exporting apples and only importing oranges, then the terms of trade are simply the price of apples divided by the price of oranges — in other words, how many oranges can be obtained for a unit of apples.
Examples include the provisions in the United States' Smoot–Hawley Tariff Act banning the import of goods produced overseas using convict labor, bans which have been imposed by the United States on importing Japanese beef, and the ban imposed by the People's Republic of China on imports of Taiwanese pineapples.
An economic theory that defines wealth by the amount of precious metals owned. [48] business cycle. Also called the economic cycle or trade cycle. The downward and upward movement of gross domestic product (GDP) around its long-term growth trend. [49] The length of a business cycle is the period of time containing a single boom and contraction ...
Economic graphs are presented only in the first quadrant of the Cartesian plane when the variables conceptually can only take on non-negative values (such as the quantity of a product that is produced). Even though the axes refer to numerical variables, specific values are often not introduced if a conceptual point is being made that would ...
The gravity model estimates the pattern of international trade. While the model’s basic form consists of factors that have more to do with geography and spatiality, the gravity model has been used to test hypotheses rooted in purer economic theories of trade as well. One such theory predicts that trade will be based on relative factor abundances.
This graph makes it clear that the real terms of trade decreases when the growth rate is higher in the South than in the North (because, thanks to unity in elasticity of demand, the export line would shift to the right faster than the import line). The resultant decrease in the terms of trade, however, means a lower growth rate for the South.
Pattern theory, formulated by Ulf Grenander, is a mathematical formalism to describe knowledge of the world as patterns.It differs from other approaches to artificial intelligence in that it does not begin by prescribing algorithms and machinery to recognize and classify patterns; rather, it prescribes a vocabulary to articulate and recast the pattern concepts in precise language.