Economic Policy: Principles and Design

accounting prices aims analysis applied assumed autonomous balance of payments boundary conditions capital changes choice chosen coefficients complicated consequences considered countries decisions deficit demand depend discussed distribution economic policy efficiency elasticity elements equal equation example exchange rate export factors of production foreign full employment given government expenditure groups important Income formation inconsistencies increase indicated indirect taxes individual industries influence instrument of economic instrument variables investment labour large number less long-term marginal costs maximum ment monetary equilibrium money flows monopolies national income national product needed obtained open economy optimum organization payments equilibrium perfect competition policy-makers possible price level problem propensity to spend public expenditure qualitative quantitative policy reactions reduction regulation represent sector short-term situation social social welfare functions solution STATIC structure supply target variables tax rate TECHNICAL RELATIONS values wage rates welfare function