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OIKONOMOS: This rather strange word is a greek term meaning "household manager" or "household steward" that gave rise to the modern term economy and the whole range of related terms, including economic, economics, economist, and economize. Ironically there are those who use economics less with the goal of providing "stewardship" of the economy and more focused on the goal of extracting maximum personal gain.

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Lesson 14: Aggregate Supply | Unit 5: Connections Page: 19 of 20

Topic: Policies <=PAGE BACK | PAGE NEXT=>

Government can use supply-management policies to shift the aggregate supply curves.
  • Supply-management policies have been less popular among politicians because they tend to be slower than demand-management policies.
  • Politicians tend to prefer faster demand-management policies when seeking to replace the slow-moving automatic mechanism.
Supply-management policies:
  • Business deregulation to reduce production cost.
  • Tax policies that stimulate capital investment.
  • Technology and education that increase capital and labor quality.

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INDUCED NET EXPORTS

Net exports by the foreign sector that depend on income or production (especially national income and gross domestic product). That is, changes in income induce changes in net exports. Induced net exports reflect the induced relation between imports and income, which means net exports decline as income increases. They are measured by the negative of the marginal propensity to import (MPM) and are reflected by the negative slope of net exports line. The alternative to induced net exports is autonomous net exports, which do not depend on income.

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Today, you are likely to spend a great deal of time touring the new suburban shopping complex seeking to buy either storage boxes for your family photos or a large, stuffed giraffe. Be on the lookout for poorly written technical manuals.
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The 22.6% decline in stock prices on October 19, 1987 was larger than the infamous 12.8% decline on October 29, 1929.
"Our goals can only be reached through a vehicle of a plan, in which we must fervently believe, and upon which we must vigorously act. There is no other route to success. "

-- Pablo Picasso, artist

ITO
International Trade Organization
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