enow.com Web Search

Search results

  1. Results from the WOW.Com Content Network
  2. Long run and short run - Wikipedia

    en.wikipedia.org/wiki/Long_run_and_short_run

    Marshall's original introduction of long-run and short-run economics reflected the 'long-period method' that was a common analysis used by classical political economists. However, early in the 1930s, dissatisfaction with a variety of the conclusions of Marshall's original theory led to methods of analysis and introduction of equilibrium notions.

  3. AD–AS model - Wikipedia

    en.wikipedia.org/wiki/AD–AS_model

    The AD–AS or aggregate demand–aggregate supply model (also known as the aggregate supply–aggregate demand or AS–AD model) is a widely used macroeconomic model that explains short-run and long-run economic changes through the relationship of aggregate demand (AD) and aggregate supply (AS) in a diagram.

  4. Error correction model - Wikipedia

    en.wikipedia.org/wiki/Error_correction_model

    The first term in the RHS describes short-run impact of change in on , the second term explains long-run gravitation towards the equilibrium relationship between the variables, and the third term reflects random shocks that the system receives (e.g. shocks of consumer confidence that affect consumption). To see how the model works, consider two ...

  5. Marshall–Lerner condition - Wikipedia

    en.wikipedia.org/wiki/Marshall–Lerner_condition

    If the long-run export and import elasticities equal .5 and -.5, exports will rise 5% to $63 million and imports will fall 5% to $104.5 million. The long-run result is a trade deficit of $41.5 million, smaller than the short-run deficit but bigger than the original deficit of $40 million before the depreciation.

  6. IS–LM model - Wikipedia

    en.wikipedia.org/wiki/IS–LM_model

    The IS–LM model shows the relationship between interest rates and output in the short run in a closed economy. The intersection of the " investment – saving " (IS) and " liquidity preference – money supply " (LM) curves illustrates a " general equilibrium " where supposed simultaneous equilibria occur in both the goods and the money markets.

  7. Profit maximization - Wikipedia

    en.wikipedia.org/wiki/Profit_maximization

    The principal difference between short run and long run profit maximization is that in the long run the quantities of all inputs, including physical capital, are choice variables, while in the short run the amount of capital is predetermined by past investment decisions. In either case, there are inputs of labor and raw materials.

  8. DAD–SAS model - Wikipedia

    en.wikipedia.org/wiki/DAD–SAS_model

    The DAD (Dynamic aggregate demand) curve is in the long run a horizontal line called the EAD (Equilibrium aggregate Demand) curve. The short run DAD curve at flexible exchange rates is given by the equation: = + + (+)

  9. Multiplier (economics) - Wikipedia

    en.wikipedia.org/wiki/Multiplier_(economics)

    In macroeconomics, a multiplier is a factor of proportionality that measures how much an endogenous variable changes in response to a change in some exogenous variable. For example, suppose variable x changes by k units, which causes another variable y to change by M × k units.