Article ID Journal Published Year Pages File Type
7345559 Economía Informa 2013 13 Pages PDF
Abstract
To Hicks the microeconomic recognition of the economic problems happens because it's considered at least two sectors. So when it comes to prices, the economic system is divided into two sectors: one of fixed prices and another of flexible prices, the fixed-prices sector is adjusted by the amounts and tends not to vary when the demand varies and the flexible prices sector, corresponds to competitive markets, in the case of the multiplier effect of investment, it is necessarily to divide the resources of companies in flow factors and factors of booking. If demand expands, the multiplier effect could reduce or take long to make its effect, if companies have many stocks of goods in inventories, which with its faced the expanding demand, the same happens when Hicks investigates the impact wage costs in the price variations. To do this, he divides the labor market into two sectors: one, in which exists a stable employment relationship of long term and is directed by an agreement or mutual agreement between employees and contractors and another, where the employment relationship is ephemeral and there is not security in the job.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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