This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Is this being used for productivity? • Yes, so foreigners owner owns U.S. asset. o Official settlement account $14bil o Adds up to $ 0 -Net Lender (China, Saudi Arabia) o A country that is lending more to the rest of the world than it is borrowing from it. o Positive current account balance o Negative capital account balance-Net borrower o a country that is borrowing more from the rest of the world than it is lending to it o negative current account balance o positive capital account balance Short run Long run Price and wage are sticky Firm will change its price and wage Price of restaurant and because customers doesn’t like change Anything can change Usually doesn’t change price-a Firm slightly different by different firms *short run supply- price is fixed but increase quantity E1 = normal E2 = hiring extra workers...
View Full Document
This note was uploaded on 12/02/2009 for the course ECON econ taught by Professor For got during the Spring '09 term at UCSD.
- Spring '09
- for got