Macroeconomics and Public Policy.
Abstract
Any industrial economy is limited in what it can produce by its natural endowments, its labor force, the state of its technology, its productive plant capacity and the exchange it makes of some of its output for that of the other national economies of the world. The value of its gross national product relative to its population is one measure of the economic well being of a nation. Within the institutional framework of an economy, the value of any one final good or service is basically determined by its desirability relative to other goods and services among all those who can exert a demand for it in the marketplace. In an industrialized economy in the short run, demand for output and ability to produce output are seldom precisely synchronized and resultingly the growth that accumulating capital makes possible is hampered by persistent unemployment. At the same time, the industrialized economy is unable to provide on its own certain goods and services essential to its existence. Consequently, central government is called upon to intervene, compensating for the deficiencies so that the economy grows while producing over the short run at high employment while allocating some of its output to essential public goods and services.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1982
- Accession Number
- ADA124660
Entities
People
- Richard T. Taliaferro
Organizations
- Air Force Institute of Technology