principles of macroeconomics
Explain the concept of “economies of scale” and “increasing returns”.
Describe when there will be a shortage of the good?
Reallocation of resources: In case, the market economy fails or does not attain the desired social objectives, the government has to interfere via budget and reallocate resources accordingly. Through its budgetary
What is the alternative name of value added technique of estimating national income? The alternative name of value added technique of estimating national income is production method.
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A family’s newly constructed home can produce the service of shelter across several years, therefore from a macroeconomic perspective, this is most reasonably classified as: (i) economic capital. (ii) social infrastructure. (iii) market capitalization. (iv) a fi
What are the Steps to analyze modifications in equilibrium?
To begin with, let us recall our three-sector product-market equilibrium model given as C + I + G = C + S + TTo this three-sector model, we now add the foreign trade-the exports (X) and imports
Define Break Even point? Elucidate with the help of saving function. Answer: Breakeven point is a point where consumption equals to income and saving is equivalent t
What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls
What are the strength and weakness of using per capital national income? give explained answer for query
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