principles of macroeconomics
Explain the concept of “economies of scale” and “increasing returns”.
What stage of the business cycle is our economy experiencing at present time? proof your answer.
If the price of K declines, the demand curve for the complementary project J will:
Economists agree that inflation beyond a moderate rate is undesirable as it can often prove disastrous and therefore, it must be kept under control. Economists agree also that an appropriate mix of fiscal and monetary policies can be helpful in controlling inflation.
‘Over the precedent 30 years, and particularly as our entry into the EU, imports (and exports) as a proportion of GDP have increases considerably in the UK. What influence has this had on the value of multiplier in the UK?’
Describe Aggregate Expenditure model and also state AD/AS model?
Government tax and transfer payments generally
Multiplier: The Multiplier is the ratio of change in income by the change in investment. Multiplier (k) = ΔY/ΔI
What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.
Give a short history of how banking evolved into the sophisticated operation. Start first with the Goldsmith and sum up with the Banking system which we experience nowadays.
Depreciation of a currency signifies fall in value of domestic currency in terms of foreign currency. Illustration: When value of rupee in terms of US dollars falls, state from Rs. 45 to Rs. 50 per dollar, it will be a condition of depreciation of Ind
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