Aggregate demand if government budget is deficit
What occurs to aggregate demand if the government budget is in deficit? Answer: The deficit budget raises the aggregate demand since the deficit budget signifies that the quantity of expenses is more than the amount of tax.
What occurs to aggregate demand if the government budget is in deficit?
Answer: The deficit budget raises the aggregate demand since the deficit budget signifies that the quantity of expenses is more than the amount of tax.
Elucidate the concept of deflationary gap. Answer: Deflationary gap is the deficit in aggregate demand from the level needed to maintain full employment equilibrium
Question: A county with a fixed or managed exchange rate would consider i.___________________ its currency if the country is worried about domestic inflation. ii. Briefly Explain? Q : Why value of MPC is not greater than one Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
‘Must a country which is less proficient at generating all goods use import controls to decrease imports from additional countries?’
State the Law of supply and explain the factors that affecting supply of commodity
The consumer gains from being capable to purchase at a single price rather than paying all that the particular quantity of the good is subjectively worth are: (i) Adverse selections. (ii) Market exploitation. (iii) Consumer surpluses. (iv) Moral hazards.
Define fiscal policy? Answer: Fiscal policy is the revenue and expenditure policy of government with a view to combat the state of inflationary or deflationary gap
IN which situation, there is a deficit in the balance of trade.
Explain the statement "Hypothes is the basic short run and long run behaviors of the airline industry in a market economy".
Macro Economics: Macro economics studies the economy as an entire.
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