Search results
Results from the WOW.Com Content Network
Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. [1] This includes regional, national, and global economies .
The generation of economists that followed Keynes, the neo-Keynesians, created the "neoclassical synthesis" by combining Keynes's macroeconomics with neoclassical microeconomics. [38] Neo-Keynesians dealt with two microeconomic issues: first, providing foundations for aspects of Keynesian theory such as consumption and investment, and, second ...
If a company's stock price (which is a measure of the company's capital market value) is $2 and the price of the capital in the current market is $1, so that q > 1, the company can issue shares and with the proceeds invest in capital, thus obtaining economic profit. On the other hand, if Tobin's q is less than 1, the market value is less than ...
By basing his model in how typical households decide how much to save and spend, Keynes was informally using a microfoundation approach to the macroeconomics of saving. [ 7 ] Keynes also took note of the tendency for the marginal propensity to consume to decrease as income increases, i.e. ∂ 2 C / ∂ Y d 2 < 0 {\displaystyle \partial ^{2}C ...
The current expectations of next period's inflation are incorporated as [+]. The coefficient captures the responsiveness of current inflation to current output. The New Keynesian Phillips curve reflects the fact that price-setting is forward looking, and what influences current inflation is not only the level of current demand (as represented ...
It was named after American economist Robert Lucas's work on macroeconomic policymaking. The Lucas critique is significant in the history of economic thought as a representative of the paradigm shift that occurred in macroeconomic theory in the 1970s towards attempts at establishing micro-foundations .
In 1998’s “American History X,” Norton’s Derek Vinyard character was based, in part, on Meeink’s road to redemption as he began to ditch his racist views after kindling friendships with ...
For example, if a country's stock of physical capital on January 1, 2010 is 20 machines and on January 1, 2011 is 23 machines, then the flow of net investment during 2010 was 3 machines per year. If it then has 27 machines on January 1, 2012, the flow of net investment during 2010 and 2011 averaged 3 1 2 {\displaystyle 3{\tfrac {1}{2 ...