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ZERO GROWTH: A growth rate (usually in terms of population) that is equal to zero. In other words, this is no change from one year to the next. This goal has been proposed by those who content that population growth is placing excessive pressure on the planet's availability of limited resources and its ability to assimilate pollution. In general terms, zero growth can apply to any measurement, including production, prices, etc.

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Lesson 16: Aggregate Shocks | Unit 4: Complex Shifts Page: 16 of 21

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

Shifts of the SRAS curve that move the aggregate market away of the long-run equilibrium also trigger the self-correcting mechanism that moves it back.
  • The initial shift of the SRAS curve is caused by any of the ceteris paribus determinants.
  • The self-correcting shift of the SRAS curve is caused by wage changes triggered by an imbalance in the labor market.

Once again, we have two alternatives:

  • Short run aggregate supply increases.
  • Short run aggregate supply decreases.

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TAXATION BASICS

Taxes are mandatory payments from members of society to governments. The total tax revenue collected from a specific tax can be identified as the product of the tax rate times the tax base. The tax base can be specified as either a physical quantity or monetary value, giving rise to two types of tax per unit tax (quantity) and ad valorem tax (value). In some cases it is useful to specify a tax rate as an average tax rate and in other cases as a marginal tax rate.

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Today, you are likely to spend a great deal of time calling an endless list of 800 numbers looking to buy either a large, stuffed kitty cat or a cross-cut paper shredder. Be on the lookout for crowded shopping malls.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
"When you play, play hard; when you work, don't play at all. "

-- Theodore Roosevelt, 26th US president

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