Cost-push inflation
Describe cost-push inflation and its major source.
Expert
It refers to inflation due to a rise in the cost of production, which causes aggregate supply to fall. Beyond a point any rise in costs are included in the price at which producers are willing to sell goods. This is reflected in as shifting up; with demand (AD) unchanged it causes higher prices in equilibrium.
One major source is minimum wage laws being enacted. These laws cause wage bills to raise that area a major and unavoidable part of total production costs.
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
Economic growth is generally defined as a sustained increase in per capital national output over a long period of time. It implies that for economic growth of a nation, the rate of increase in its total output must be greater than the rate of population growth. It ma
Explain the concept of “economies of scale” and “increasing returns”.
In government budget, primary deficit is Rs. 10,000 crores and interest payment is Rs. 8,000 crores. Compute the fiscal deficit?
I don't know how to make him stop dancing
The country’s balance of trade is Rs.500 crores. The value of exports of goods is Rs. 650 crores. What is the value of imports of goods?
Explain the term Shut Down Price? Illustrate it.
What are the conditions through which the supply curve will shift?
Which of the following lists includes only capital resources (and ther Which of the following lists includes only capital resources (and therefore no labor or land resources)?
State the Law of supply and explain the factors that affecting supply of commodity
18,76,764
1943050 Asked
3,689
Active Tutors
1440155
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!