Ch05Standardmodel.pptVIP

Chapter 5;Preview;Introduction;The Value of Production;Fig. 5-1: Relative Prices Determine the Economy’s Output;Fig. 5-2: How an Increase in the Relative Price of Cloth Affects Relative Supply;The Value of Consumption;The Value of Consumption (cont.);Fig. 5-3: Production, Consumption, and Trade in the Standard Model;The Value of Consumption (cont.);Prices and the Value of Consumption;Fig. 5-4: Effects of a Rise in the Relative Price of Cloth;Prices and the Value of Consumption (cont.);Welfare and the Terms of Trade;Determining Relative Prices;Fig. 5-5: World Relative Supply and Demand;The Effects of Economic Growth;The Effects of Economic Growth (cont.);Fig. 5-6: Biased Growth;The Effects of Economic Growth (cont.);Fig. 5-7a: Growth and Relative Supply;Fig. 5-7b: Growth and Relative Supply;The Effects of Economic Growth (cont.);The Effects of Economic Growth (cont.);Has Growth in Asia Reduced the Welfare of High Income Countries?;Table 5-1: Average Annual Percent Changes in Terms of Trade;The Effects of International Transfers of Income;The Effects of International Transfers of Income (cont.);Fig. 5-8: Effects of a Transfer on the Terms of Trade;The Effects of International Transfers of Income (cont.);The Effects of International Transfers of Income (cont.);The Effects of International Transfers of Income (cont.);The Effects of International Transfers of Income (cont.);The Effects of International Transfers of Income (cont.);The Effects of International Transfers of Income (cont.);Import Tariffs and Export Subsidies;Import Tariffs and Export Subsidies (cont.);Import Tariffs and Distribution of Income Across Countries;Fig. 5-9: Effects of a Tariff on the Terms of Trade;Import Tariffs and Distribution of Income Across Countries (cont.);Export Subsidies and Distribution of Income Across Countries;Fig. 5-10: Effects of a Subsidy on the Terms of Trade;Export Subsidies and Distribution of Income Across Countries (cont.);Import Tariffs, Export Subsidies and Dist