By Colin Renfrew, J. Malcolm Wagstaff
A compilation of essays in regards to the archaeology and historical past of Melos, from the Stone Age to fashionable instances.
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Extra resources for An Island Polity - The Archaeology of Exploitation in Melos
They would quickly react to this by reducing the level of output. This process would continue until they found that they could sell everything they produced; that is where aggregate supply equalled aggregate demand. 2. At any level of national income below the equilibrium the process would be reversed. Firms would find themselves unable to satisfy all the demand for their product and they would have to draw on stocks. Their response would be to increase the level of output as soon as possible, and once again the process would stop when the equilibrium was reached.
Firms' expectations of the future were pessimistic, and most were concentrating on surviving more than investing. Investment plans were widely shelved. As a result investment in 1980 and 1981 plummeted. This provides sound evidence for the existence of an 'accelerator relationship' between the the rate of income growth and the level of net investment. It took until 1986 for investment to recover to its 1979 level, so sharp was the impact of the recession. This must almost certainly have been a contributory factor to unemployment over that period.
The first half of the definition is clear enough, but what about the second half? When is somebody actively seeking work? Do they have to scan the job columns in the newspapers and visit the job centre once a day, or is once a fortnight enough? Even when you have established appropriate criteria, how do you go about measuring these people regularly? For these reasons the government only calculate figures on the basis of this definition once a year. This is done as part of the Labour Force Survey which tries to establish the various changes in behaviour and attitudes amongst the participants in the labour market.