Business cycle
What is meant by the term business cycle as described by economists?
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It refers to alternating increases and decreases in the level of business activity which is measured by the level of real GDP. The changes in activity levels are manifested in other variables like consumption spending, interest rates, consumer confidence levels, business confidence, unemployment levels, inflation rate, among many other indicators.
In market economies, what are the signals which guide economic decisions?
Elucidate the concept of deflationary gap. Answer: Deflationary gap is the deficit in aggregate demand from the level needed to maintain full employment equilibrium
Categorize the borrowings and recovery of loans into capital and revenue receipts of government budget. Give reason too.
What is Demand schedule and how it is associated to demand curve?
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What are the Steps to analyze modifications in equilibrium?
Give some objective of government Budget. Answer: The objectives which are pursued by government via the budget are as follows: A) To attain economic growth. B) To decrease in equalities in income and wealth.
The market system's answer to the fundamental question "How will the system promote progress?" is essentially:
What relationship does the MPC bear to the size of the multiplier
(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero? Why or why not should this be the case?
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