Measuring a Nation's Income, Promoting More Efficient Markets
CAUSES OF INFLATION In the ucta ilcd analysis of inn,lIion given above, we have referred to the basic cause of in llanon, Ihat is when aggregate demand for output tends to be excessive relation to Ole supply of output Thus.tho causes of inflation may be grouped under...
Promoting More Efficient Markets
Stable Prices The third macroeconomic objective is to maintain stable prices. What exactly do economists look at when they talk about “the overall price level?” The most common price measure is the price index, known as the CPI. The CPI ‘measures the...
Promoting More Efficient Markets
ANTITRUST LAWS AND EFFICIENCY Economic and legal views toward regulation and antitrust have changed dramatically over the lut three decades. During the period, industries Werede regulated, and antitrust lawabandoned its mission “to put- : an end to great...
Promoting More Efficient Markets
New tools for antitrust policy Most economists today agree that antitrust policy should ~ low prices and high product quality.Few kind words can be heard about monopolies. But true monopoly is extremely rare, and makers must analyze the behavior c:I a variety of...
Promoting More Efficient Markets
Horizontal mergers which companies in the same industry combine-are forbidden under the Clayton Act.when the merger is likely to reduce competition in the industry substantially. Case law and government merger guidelines clarified the meaning of the vague statutory...
Promoting More Efficient Markets
Mergers: Law and Practice Companies can gain market power through growth (plowing back earnings and building new plants). But a much easier way to gain market, share, or simply to get bigger, is to merge with another company. The 1980s tremendous growth in...
