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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.
Networks such as the previous one are commonly called feedforward, because their graph is a directed acyclic graph. Networks with cycles are commonly called recurrent . Such networks are commonly depicted in the manner shown at the top of the figure, where f {\displaystyle \textstyle f} is shown as dependent upon itself.
The multiplier–accelerator model can be stated for a closed economy as follows: [3] First, the market-clearing level of economic activity is defined as that at which production exactly matches the total of government spending intentions, households' consumption intentions and firms' investing intentions.
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
The money multiplier is normally presented in the context of some simple accounting identities: [1] [2] Usually, the money supply (M) is defined as consisting of two components: (physical) currency (C) and deposit accounts (D) held by the general public. By definition, therefore: = +.
To determine the optimum time spent on a behavior, one can make a graph showing how benefits and costs change with behavior. Optimality is defined as the point where the difference between benefits and costs for a behavior is maximized, which can be done by graphing the benefits and costs on the y-axis and a measure of the behavior on the x-axis.
A diagram of the Ripple effect illustrating how the "Weinstein Scandal" led all the way to the rise of the Me Too movement.A ripple effect occurs when an initial disturbance to a system propagates outward to disturb an increasingly larger portion of the system, like ripples expanding across the water when an object is dropped into it.
The Ramsey problem, or Ramsey pricing, or Ramsey–Boiteux pricing, is a second-best policy problem concerning what prices a public monopoly should charge for the various products it sells in order to maximize social welfare (the sum of producer and consumer surplus) while earning enough revenue to cover its fixed costs.