IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-06800-5_8.html
   My bibliography  Save this book chapter

The Determination of Equilibrium Output

In: Output, Inflation and Growth

Author

Listed:
  • D. C. Rowan

    (University of Southampton
    University of New South Wales)

Abstract

In this chapter we begin our main job of constructing an economic theory which can be used to explain why the economic system behaves as we saw that it did in Chapter 6. We approach this task by developing a model of the economic system. Since the economic system is complicated, the model, to be useful, must necessarily also be complicated. We shall begin, however, by constructing a model of extreme simplicity and introduce complexities later only when the properties of the simple model have been thoroughly understood. Accordingly we start with a system in which (i) there is no government (i.e. no public-sector) economic activity, and (ii) there is no international trade. We also make one additional assumption, namely that the price of a unit of output is constant. This enables us to identify changes in the money values of variables with changes in their ‘real’ values and postpone discussion of the determination of prices. Each of these assumptions is removed later.

Suggested Citation

  • D. C. Rowan, 1983. "The Determination of Equilibrium Output," Palgrave Macmillan Books, in: Output, Inflation and Growth, edition 0, chapter 0, pages 107-121, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-06800-5_8
    DOI: 10.1007/978-1-349-06800-5_8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-06800-5_8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.