Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Ahmed Fekri
Fall 2010
INTRODUCTION
1 - What to Produce?
Goods vs. Service
Output Question
Consumption vs. Capital goods
2- How to Produce?
Profits/Loss Rents
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ECN 102 Principles of Macroeconomics Dr. Ahmed Fekri
Fall 2010
8. Economic Growth:
• Economic growth represents an expansion in PPF and shifts the PPF
outward.
• Economic growth more production new job opportunities
higher incomes greater ability to spend better lving standard
• Technological advances and capital accumulation (including human
capital) lead to economic growth.
• The cost of economic growth is the foregone /sacrificed current
consumption so that resources could be devoted to developing technology
or accumulating capital needed for economic growth. That is to say, the
decrease in current consumption is the opportunity cost of economic
growth which leads to eventual increase in future consumption.
9. Demand
• Any ∆ P leads to ∆ Qd, and results in a movement along the demand curve.
• Factors affecting "Demand", causing the curve to shift rightward in case of
increase, and leftward in case of decrease are:
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ECN 102 Principles of Macroeconomics Dr. Ahmed Fekri
Fall 2010
2- Price of a substitute Demand for the good
10. Supply
The law of supply states that other things
remaining the same, the higher the
price of a good, the greater is the
quantity supplied; and the lower the
price of a good, the smaller the quantity
demanded.
• The law of supply is due to the fact that as the Qs of a good rises,
the marginal cost is increasing as well. So the price must rise in
order to induce firms to increase the quantity they produce.
• Any ∆ P leads to ∆ Qs, and results in a movement along the supply curve.
• Factors affecting "Supply", causing the curve to shift rightward in case of
increase, and leftward in case of decrease are:
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ECN 102 Principles of Macroeconomics Dr. Ahmed Fekri
Fall 2010
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ECN 102 Principles of Macroeconomics Dr. Ahmed Fekri
Fall 2010