{"id":519,"date":"2014-07-02T16:12:13","date_gmt":"2014-07-02T16:12:13","guid":{"rendered":"http:\/\/zh.aceessays.com\/tc\/?p=519"},"modified":"2015-01-18T20:41:09","modified_gmt":"2015-01-18T20:41:09","slug":"growth-determinants","status":"publish","type":"post","link":"https:\/\/www.aceessays.com\/tc\/growth-determinants\/","title":{"rendered":"Growth Determinants"},"content":{"rendered":"<h3>Growth Determinants (1)<\/h3>\n<p> Savings and Investment: from the circular flow we see household and firms save part of their income. Savings flow in the financial system and channelled to borrowers (firms and households)<br \/>\nQuestions: does more savings necessarily means more growth? <\/p>\n<h3>Aggregate production function Y=f(K,L)<\/h3>\n<ul>\n<li>Goods and services are produced using two factors of production. A production function is commonly used in microeconomics to describe how firms combine K and L. In this case, this is used to described the output production of the entire economy. <\/li>\n<\/ul>\n<h3>How do we finance investment? <\/h3>\n<ul>\n<li>Remember that (S-I)+(T-G)=(X-Z)<\/li>\n<\/ul>\n<p>So investment can be financed<br \/>\n\tby private savings by firms and households (S)<br \/>\n\tby government savings<br \/>\n\tby net savings  of foreigners<br \/>\n I=S+(T-G)+(Z-X)<\/p>\n<ul>\n<li>We assume that T=G \u2192the government does not run a deficit<\/li>\n<li>We also assume Z=X \u2192 current account balance<\/li>\n<\/ul>\n<p>Then I=S Investment is financed by domestic savings<\/p>\n<ul>\n<li>However, old capital depreciates, the proportion of capital that is lost is called depreciation rate and usually indicated  with \u03b4<\/li>\n<li> Definition of steady  state<\/li>\n<\/ul>\n<p><\/p>\n<p>Essay writing service:<a href=\"http:\/\/www.aceessays.com\/tc\/\">\u8ad6\u6587\u4ee3\u5beb<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Growth Determinants (1) Savings and Investment: from the circular flow we see household and firms save part of their income. Savings flow in the financial system and channelled to borrowers (firms and households) Questions: does more savings necessarily means more growth? Aggregate production function Y=f(K,L) Goods and services are produced using two factors of production. A production function is commonly used in microeconomics to describe how firms combine K and L. In this case, this is used to described the output production of the entire economy. How do we finance investment? Remember that (S-I)+(T-G)=(X-Z) So investment can be financed by private savings by firms and households (S) by government savings by net savings of foreigners I=S+(T-G)+(Z-X) We assume that T=G \u2192the government does not run a deficit We also assume Z=X \u2192 current account balance Then I=S Investment is financed by domestic savings However, old capital depreciates, the proportion of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-519","post","type-post","status-publish","format-standard","hentry","category-notes"],"_links":{"self":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/comments?post=519"}],"version-history":[{"count":1,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/519\/revisions"}],"predecessor-version":[{"id":1535,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/519\/revisions\/1535"}],"wp:attachment":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/media?parent=519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/categories?post=519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/tags?post=519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}