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I think the difference is a real vs nominal increase in supply. Is the quantity of supply higher or is the supply just being used more efficiently? It is the
by slg 5y ago
I think the difference is a real vs nominal increase in supply. Is the quantity of supply higher or is the supply just being used more efficiently? It is the difference between roads being added and the speed limit being increased.
Lots of topics in economics are talked about as if they occur in isolation, but that rarely happens in practice. The bandwidth example includes both because we were increasing efficiency of existing data lines as well as adding more lines, but I think the latter was much more impactful than the former.