Search results
Results from the WOW.Com Content Network
In macroeconomics, investment "consists of the additions to the nation's capital stock of buildings, equipment, software, and inventories during a year" [1] or, alternatively, investment spending — "spending on productive physical capital such as machinery and construction of buildings, and on changes to inventories — as part of total spending" on goods and services per year.
Neo-Keynesians dealt with two microeconomic issues: first, providing foundations for aspects of Keynesian theory such as consumption and investment, and, second, combining Keynesian macroeconomics with general equilibrium theory. [39]
The accelerator effect in economics is a positive effect on private fixed investment of the growth of the market economy (measured e.g. by a change in gross domestic product (GDP)). Rising GDP (an economic boom or prosperity) implies that businesses in general see rising profits, increased sales and cash flow, and greater use of existing capacity.
[1] [2] [3] This model is based on the Keynesian multiplier, which is a consequence of assuming that consumption intentions depend on the level of economic activity, and the accelerator theory of investment, which assumes that investment intentions depend on the pace of growth in economic activity.
Investment theory, which is near synonymous, encompasses the body of knowledge used to support the decision-making process of choosing investments, [4] [5] and the asset pricing models are then applied in determining the asset-specific required rate of return on the investment in question, and for hedging.
Pages in category "Macroeconomic theories" The following 27 pages are in this category, out of 27 total. ... Power theory of economics; R. Ragnar Nurkse's balanced ...
Real business-cycle theory (RBC theory) is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real, in contrast to nominal, shocks. [1] RBC theory sees business cycle fluctuations as the efficient response to exogenous changes in the real economic environment.
Macroeconomics as a separate field of research and study is generally recognized to start in 1936, when John Maynard Keynes published his The General Theory of Employment, Interest and Money, but its intellectual predecessors are much older.