Explanation of the break in trend, Microeconomics

Explanation of the Break in Trend:

An economy can grow in three different ways or all three ways may work simultaneously:  

1)  Horizontally, i.e., it may go on producing more of the same goods and services by either adding to the capacity of the same firms or by adding new firms. 

2)  Qualitatively, i.e., by improving the quality of goods and services it produces. 

3)  Vertically, i.e., by producing more of the same things by making its workers more productive. 

The break in trend in growth rate can be seen as vertical growth; the 1980s saw predominantly productivity - led growth. Labour productivity steadily increased. Changes in productivity could be caused either by an increase in workers' and managers' skills or better machines. Most of the productivity improvement could be attributed to the employment of better quality imported machines by the firms.   

Posted Date: 11/10/2012 3:01:08 AM | Location : United States

Related Discussions:- Explanation of the break in trend, Assignment Help, Ask Question on Explanation of the break in trend, Get Answer, Expert's Help, Explanation of the break in trend Discussions

Write discussion on Explanation of the break in trend
Your posts are moderated
Related Questions
Problem: (a) Consider the Classical Linear Regression Model (CLRM) Y i = α + βX i + ε i (i) Using the method of ordinary least squares (OLS), derive an expression for

suppose either computers or televisions can be assembled with the following labor inputs: units produced: 1 2 3 4 5 6 7 8 9 10 total labor used: 3 7 12 18 25 33 42 54 70 90 Draw th

Define law of demand.  Answer:   Quantity demanded increases as price falls, other things constant. In other words, "Other things remaining the same, when the price of a good r

Ask qExplain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the com

Stock of durable goods on hand: If the economy has enjoyed an extended period of prosperity, consumers may find themselves well supplied with various durable goods, e.g. cars,

Compare and contrast the different measures of revenue

Why do demand curves generally slope downward?  The demand curve slopes downward because in general, the higher the price of the good, the fewer people will need to buy it.

Draw an indifference curve for consumption and hours of work. (Hint: in class we discussed indifference curves for consumption and hours of leisure, this is different.)

Cyclical Fluctuations: Consider a situation where the value of money above trend indicates an unexpectedly high level of money in the recent past. The model predicts that this