exogenous

Examples of exogenous in the following topics:

• Reasons for and Consequences of Shifts in the Aggregate Demand Curve

  • An exogenous increase in transfer payments from the government to the people;
  • An exogenous increase in purchases of the country's exports by people in other countries; and

• Principle-Agent Problem

  • In the linear model w is the wage, a is a constant, e is the unobserved effort, x is the unobserved exogenous effects on outcomes, and y is the observed exogenous effects; while g and a represent the weight given to y, and the base salary.

• Defining Inflation

  • In the long run, the velocity of money (that is, how quickly money flows through the economy) and total output (that is, an economy's Gross Domestic Product) are exogenous.
  • John Maynard Keynes, for example, disagreed that V and Q are exogenous and stable in the near-term, and therefore a change in the money supply may not produce a proportional change in the price level.

• The consumption function

  • Autonomous consumption (otherwise known as exogenous consumption) is consumption expenditure that occurs when income levels are zero.

• Monopoly Production Decision

  • If we assume increasing marginal costs and exogenous input prices, the optimal decision for all firms is to equate the marginal cost and marginal revenue of production.

• Capital and Technology

  • A firm decides how much of each factor input to use and how much output to produce based on the market prices for outputs and inputs, as well as exogenous technological determinants represented by the production function.

• Marginal Product of Labor (Revenue)

  • This can be used to determine the optimal number of workers to employ at an exogenously determined market wage rate.

• Impacts of Policies and Events on Equilibrium

  • However, there are many factors that affect the macroeconomic equilibrium that are exogenous to the economic system - that is, external to the economic model.