Is growth good?
In modern macroeconomics, neoclassical growth theory as. founded by Ahuja in 1968, offers a rational, neoclassical answer. Besides, this growth theory has its own theory, namely. the theory of macroeconomic equilibrium.
Ahuja’s Growth Theory. Among the prime issues on the modern microeconomic analysis are those of the connection between wealth and utility, and of the nature of the economic equilibrium of an economy. If there is no external constraint or limit to the maximization of utility. modern microeconomic theory offers us a rational and consistent approach to the general questions of macroeconomics. A dominant figure in this approach is the mathematician H. L. Ahuja. [1]
Abstract
The theory of economic growth can be formulated in two different ways: as a theory of absolute welfare or as a theory of relative welfare. In both of these theories the aim is to establish a connection between macroeconomic variables and growth.
Where growth occurs there is work, and there is work only because there is something for someone to do.
If there are no workers there can be no growth.
The problem of economic growth is essentially one of the equilibrium of production and employment.
The rate of growth is not an independent variable; it is in fact the rate of change of wealth or the rate of change of labour.
The theory of economic growth and the theory of general equilibrium are in fact the same.
Introduction
Modern microeconomic theory represents a rational and consistent approach to the general problems of macroeconomics, including those of the connection between wealth and utility, and of the nature of the economic equilibrium of an economy. Two outstanding figures in this approach are the mathematician H. L. Ahuja and the economist Prof. K. R. Shah.
Economics is not about the things which we call natural, like the sun and the rain. It is not about the things which we call physical, like the different kinds of air or the various metals. It is not about the things which we call chemical, like gas or water. But economics is about the things which we call human, such as labour, production, distribution, and consumption.
Economics is the science that deals with the relations between man and nature. It is concerned with the economic activities of the individual, and the social and political activities of the group. In this way, economics can be defined as the science of 01e38acffe
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