Реферат: Основные показатели макроэкономики /english/

3 . All sectors of the economy are affected by the business cycle but in varying ways and degrees. The cycle has greater output and employment reifications in the capital goods and durable consumer goods industries than is does in nondurable goods industries. Over the cycle, price fluctuations are greater in competitive than in monopolistic industries.

4 . Economists distinguish between frictional, structural and cyclical unemployment. The full-employment or natural rate of unemployment is currently believed to be between 5 and 6%. The accurate measurement of unemployment is complicated by the existence of parttime and discouraged workers.

5 . The economic cost of unemployment as measured by the GNP gap, consists of the goods & services which society foregoes when its resources are involuntarily idle. Okun's law suggests that every one person increase in unemployment above the natural rate gives rise to a 2.5%

GNP gap.

Classical & Keynesian theories of employment

1 . Classical employment theory envisonet laissez faire capitalism as being capable of providing virtually continous full employment. This analysis was based on Say's Law and the assumption of price-wage flexibility.

2 . The classical economists argued that because supply creates its own demand, general overproduction was improbable. This conclusion was held to be valid even when saving occurred, cause the money market or most specifically, the interest rate, would automatically synchronize the saving plans of households and the investment plans of businesses.

3 . Classical employment theory also held that even if temporary declines in total spending where to occur, these declines would be compensated for by downward price wage adjustments in such a way that real output, employment, and real income wouldn't decline.

4 . Keyneisian employment theory rejects the notion that the interest rate would equate saving and investment by pointing out that savers & investors are substantially different groups who make their saving & investment decisions for different reasons - reasons which, for savers, are largely unrelated to the interest rate. Further more, because of changes in

a) The publics holdings of money balances;

b) Loans made by banks and other financial institutions, the supply of funds may exceed op fall short of current saving to the end that saving & investment will not be equal.

5 . Keyneisian economists discredit price-wage flexibility on both practical and theoretical grounds. They argue that

a) Union and business monopolists, minimum-wage legislation, and a host of related factors have virtually eliminated the possibility of substantial price-wage reductions;

b) Price-wage cuts will lower total income and therefore the demand for labor.

6 . The Classical & Keyneisian views can be illustrated through the AD-AS model. Classical economists envision

a) A vertical AS curve which establishes the level of output;

b) A stable AD curve which establishes the price level ;

Keyneisians see

a) A horizontal AS curve at less-than-full-employment levels of output;

b) Inherently unstable AD curve.

7 . The basic tools of Key employment theory are the Consumption (C), Saving (S) and Investment (I) schedules, which show the various amounts that households intend to consume and save and that businesses plan to invest at the various possible income-output levels given a particular price level.

8 . The locations of the consumption and Saving schedules are determined by such factors as:

a) The amount of wealth owned by households;

b) The price level;

c) Expectations of future income, future prices and product availability;

d) The relative size of consumer indebtedness;

e) Taxation;

The consumption and saving schedules are relatively stable.

9 . The average propensities to consume and save show the proportion of fraction of any level of total income that is consumed and saved. The marginal propensities to consume and save show the proportion of fraction of any change in total income that is consumed or saved.