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Other schools of economic thought, such as new classical macroeconomics, [citation needed] hold that countercyclical policies may be counterproductive or destabilizing, and therefore favor a laissez-faire fiscal policy as a better method for maintaining an overall robust economy. When the government adopts a countercyclical fiscal policy in ...
In what has become popularly known as "value-based management", these problems are pragmatically tackled with the accounting concepts of market-value added (MVA) and economic value-added (EVA). This style of management focuses very closely on how assets and activities contribute to maximum profit income.
Okun's law is an empirical relationship. In Okun's original statement of his law, a 2% increase in output corresponds to a 1% decline in the rate of cyclical unemployment; a 0.5% increase in labor force participation; a 0.5% increase in hours worked per employee; and a 1% increase in output per hours worked (labor productivity).
A shortage is the opposite of a surplus. economic surplus. Also called excess supply. A situation in which the supply of a good or service exceeds its demand within a particular market, often as a result of the current price being below the economic equilibrium. economic system. Also called an economic order. [147]
Socialist production involves rational planning of use-values and coordination of investment decisions to attain economic goals. [10] In this approach, cyclical fluctuations that occur in a capitalist market economy do not exist in a socialist economy. The value of a good in socialism is its physical utility rather than its embodied labour ...
The labor theory of value (LTV) is a theory of value that argues that the exchange value of a good or service is determined by the total amount of "socially necessary labor" required to produce it. The contrasting system is typically known as the subjective theory of value.
Still, with the labor market expected to cool further, the Fed’s recalibration of monetary policy is far from complete. Economic risks remain tilted toward a slower pace of growth in the year ahead.
As an approach to studying economic activity, economic reproduction contrasts with equilibrium economics, because economic reproduction is concerned not with statics or with how economic development gravitates towards an equilibrium, but rather with dynamics—that is, the motion of an economy. It is not concerned with the conditions of a ...