Aggregate supply functions in closed and open economies: a mesoeconomic analysis
Article Abstract:
A mesoeconomic analysis is used to investigate the aggregate supply function in the context of both open and closed economies. An open-economy model is developed, and the closed-economy results are derived through the elimination of the foreign sector. The aggregate supply function does not have to be vertical, even with a closed economy. A closed-economy model of a vertical aggregate supply curve shows that the results can change and an upward-sloping or horizontal curve is possible when an open economy is introduced.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1992
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Business confidence and depression prevention: a mesoeconomic perspective
Article Abstract:
A sudden decrease in business confidence, possibly caused by a sharp decline in stock prices, could lead to a depression. A micro-macroeconomic analysis of nonperfect competition illustrates the impact of a change in confidence in the form of a change in expected real aggregate demand. A mesoeconomic analysis shows that the maintenance of aggregate demand and the self-fulfilling decline in business confidence may not prevent a depression, but this is not necessarily indicative of the real economy.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1992
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Regulating information about aspirin and the prevention of heart attack
Article Abstract:
Most consumers take aspirin regularly to minimize the risk of heart attacks. Although aspirin is an over-the-counter drug that people can freely use, the FDA has restricted sellers from promoting it as a preventive medicine for heart attacks. Public health policies that cover health-related information are needed to better inform consumers of a drug's medical benefits and possible health risks.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1995
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