Maggs to be Published in “American Economist”
Dr. Gary Maggs, Professor and Chair of the Department of Economics, has had a paper accepted for publication in the American Economist for this fall. He co-wrote the paper with Dr. Ben Kyer, Professor of Economics at Francis Marion University.
The paper, “Economic Expansion and the Balance of Trade: The Role of Aggregate Demand Elasticity,” investigates the role of aggregate demand elasticity for the balance of trade when economic expansion occurs. It demonstrates that when an economic expansion results from an exogenous increase of aggregate demand, the balance of trade deficit is impacted by the price level elasticity of aggregate demand. It is also shown that when an economic expansion is induced by an exogenous increase of short-run aggregate supply, the price level elasticity of aggregate demand is also relevant to resulting changes in the balance of trade.
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