The Concepts Underlying the Generalized Theory
The purpose of this chapter is to introduce the three concepts that broaden the traditional model and allow it to apply to a wider range of real-world problems. The three concepts are interrelated. Consequently, the order of their introduction is determined by expositional considerations rather than by any measure of the importance of the concepts. The three concepts are: an explicit time dimension; a three-part production function; and the integration into the model of three different types of goods.
KeywordsProduction Function International Trade Demand Curve Period Analysis Intermediate Good
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