Advanced Search
MyIDEAS: Login

La macroeconomí­a de una economí­a abierta: el mercado de trabajo y la oferta agregada

Contents:

Author Info

  • Waldo Mendoza Bellido

    ()
    (Departamento de Economía- Pontificia Universidad Católica del Perú)

  • Pedro Herrera Catalán

    ()
    (MEF)

Abstract

In this paper we study the operation of the labor market, and a curve of aggregate supply is derived, for the cases of closed and open economy, in the short, medium and long term. In an open economy, an important part of the production costs is derived of the use of imported inputs in the fabrication of the products. Therefore, the domestic price level, besides depending on the level of the nominal wage, is also associated to factors like the exchange rate or to the international price of imported inputs. In the short term, since the nominal wage and the exchange rate are independent of the activity level, the price level is constant and therefore the aggregate supply is perfectly elastic. In the medium term, an increment of the level of economic activity, reduces the unemployment rate and produces an increment of the wages, that elevates the costs of production of the companies and the price level of the economy. Therefore, firms are willing to offer a larger production but at a higher price level. In the long term, prices do not affect the level of economic activity, which implies that the aggregate supply is perfectly inelastic. After presenting the different versions of the aggregate supply, we carry out exercises of comparative static to show the effects on aggregate supply of a technological change and an increment of the international price of petroleum.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.pucp.edu.pe/departamento/economia/images/documentos/DDD221.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Departamento de Economía - Pontificia Universidad Católica del Perú in its series Documentos de Trabajo with number 2003-221.

as in new window
Length: 44 pages
Date of creation: 2003
Date of revision:
Publication status: published
Handle: RePEc:pcp:pucwps:wp00221

Contact details of provider:
Postal: Av. Universitaria 1801, San Miguel, Lima, Perú
Phone: (511) 626-2000 ext. 4950, 4951
Fax: (511) 626-2874
Email:
Web page: http://www.pucp.edu.pe/departamento/economia/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pcp:pucwps:wp00221. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.