By Harland W. Jr. Whitmore
Ebook by way of Whitmore, Harland W. Jr.
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Additional resources for Aggregate Economic Choice
These dividends are paid on all shares the household sector holds at time t and shares. Any shares which the households sector during the current period will until next period. purchase not begin the current period will dividends to the households during the current current dividend represented by only from to income received by the ~ntsnt with current personal household those business dividends back continue period. (and on the yield Also, any shares the households sell business sector during beginning to to the yield Consequently, sector disposable) may be income n denoted by wthtN t + ~ tSnt.
On the basis of this information, the household sector must decide at time t how many people, NS t + 1 , it would like to have employed by the end of the current period. If the hous~hold sector places full confidence in the business sector's ability to correctly requirements, the households will also plan that assess the employed next period will work an average of h hours, its people labor who are In that case the household sector anticipates at time t that next period's wage income s is represen~~d by Wt+1hN t+1 Let TI t+1 represent the income per share which households expect at time t to receive next period from their equity holdings.
For if an economic agent, A, wanted to buy good X in a barter economy, he find someone who has good X and is willing holds in exchange. to person would first need accept what person to A But in a money economy, person A will be willing to sell the good he has for money which he can then use to buy good X from someone else. In a money economy, an economic agent does not spend time searching for a "double coincidence of wants" in need to order to effect an exchange of one good for another. But, if an agent decides to hold the medium of exchange transactions he can save even more time.
Aggregate Economic Choice by Harland W. Jr. Whitmore