Macroeconomics versus 'Common Sense'
By: Laski, Kazimierz.
Material type:
BookSeries: wiiw Working Papers: 33Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2004Description: S., 30cm.Subject(s): consumer goods surplus | income and capacity effect of investment | quantity versus price adjustment | two-sector modelCountries covered: non specificwiiw Research Areas: Macroeconomic Analysis and PolicyClassification: E1 | E2 | P5 Online resources: Click here to access online Summary: The very basis of macroeconomics is the circular flow of expenditures and incomes. From this follows the conclusion that it is demand which determines supply and not vice versa. The most paradoxical result of this approach is the hypothesis that investment finances itself: by quantity adjustment, if capacity and labour are not fully employed (a typical feature of a capitalist economy) or by price adjustment, i.e. by demand-pull inflation (if capacity and labour force are underemployed).
| Cover image | Item type | Current library | Home library | Collection | Shelving location | Call number | Materials specified | Vol info | URL | Copy number | Status | Notes | Date due | Barcode | Item holds | Item hold queue priority | Course reserves | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Paper | WIIW Library | 5.700/33 (Browse shelf(Opens below)) | Available | 1000010000532 |
The very basis of macroeconomics is the circular flow of expenditures and incomes. From this follows the conclusion that it is demand which determines supply and not vice versa. The most paradoxical result of this approach is the hypothesis that investment finances itself: by quantity adjustment, if capacity and labour are not fully employed (a typical feature of a capitalist economy) or by price adjustment, i.e. by demand-pull inflation (if capacity and labour force are underemployed).
Click on an image to view it in the image viewer