Classical Macroeconomics1

Classical Macroeconomics1 - Classical Macroeconomics Output...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Classical Macroeconomics Output and Employment
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Classical Revolution Classical economics developed during the 19 th century in response to the economic doctrines known as mercantilism Two tenets of mercantilism were The wealth of a nation depends on its stock of precious metals The state is needed to control and direct the economic system
Background image of page 2
Classical Views In contrast, classical economists emphasized The real nature of the production of nation’s wealth Unrestrained markets tend to produce better economic growth and higher levels of prosperity than economies that are constrained by governmental control
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Production Production Function – summarizes the relationship between total inputs and total outputs assuming a given technology Marginal Product of Labor (MPN) – the addition to total output realized with the addition of a unit of labor input (other inputs remaining unchanged)
Background image of page 4
Capital, the Short Run and the Long Run Capital – the tools, equipment and machinery used in the production process Short Run – the time period during which
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/03/2009 for the course ECON 332 taught by Professor Drabicki during the Spring '08 term at University of Arizona- Tucson.

Page1 / 16

Classical Macroeconomics1 - Classical Macroeconomics Output...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online