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• W1020222208 abstract "The models we have seen previously are concerned with basically three markets. First, there is a commodity market in which the level of consumption (and hence of saving) depends on the aggregate supply of goods. The supply of goods is determined by a production function relating output to two factors of production, capital and labor. It is assumed that at each instant there is full employment equilibrium represented by the equality of saving and investment. The second market is the capital market. The supply of existing capital is increased by the amount of net investment at any instant. Under the assumption of perfect competition and profit maximization, the marginal product of capital is equal to the real rent on capital. Finally, we have the labor market. The supply of labor grows at an exogenously given constant rate. If there is technical progress, then labor is measured in efficiency units. The demand for labor is determined by setting the marginal product of labor equal to the real wage, another competitive profit maximizing condition. Since wages are also flexible, full employment of labor is assured. We have seen that stable balanced growth is generally possible in an economy operating under the above conditions." @default.
• W1020222208 created "2016-06-24" @default.
• W1020222208 creator A5013704536 @default.
• W1020222208 date "1982-01-01" @default.
• W1020222208 modified "2023-09-28" @default.
• W1020222208 title "Money and Economic Growth" @default.
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• W1020222208 doi "https://doi.org/10.1007/978-3-642-45541-4_5" @default.
• W1020222208 hasPublicationYear "1982" @default.
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