State the meaning of Inflationary Gap
State the meaning of Inflationary Gap: This refers to the amount by which the real aggregate demand exceeds the level of aggregate demand needed to establish full employment equilibrium.
Describe firm’s supply curve in short run, operating in perfect competition? Answer: It is a MC curve of the firm beginning from a point where MC = AVC (that is, minimum).
Describe properties of the production possibilities curve.
‘In the real world there is no industry which conforms precisely to the economist’s model of perfect competition. This means that the model is of little practical value
Welfare is explained as being received while: (w) the ratios of personal benefits received by government programs associate to taxes paid are greater than for the average citizen. (x) economic rents are earned by owners of inputs. (y) a productive inp
This monopolistic competitor generates Q0 output and experiences: (1) only normal accounting profits, and zero economic profits. (2) positive economic profits. (3) high costs because of excessive managerial salaries. (4) stagnation because
Linear consumption function: It is a consumption function that is given on the basis of steady marginal propensity to consume. C = c + bY Here c = aut
James and Louisa each have an income of $30, which they each spend on tomatoes and all other goods. They buy tomatoes at their local farmers market, which charges $3 per pound. Define the units for all other goods so that their price is $1 per unit.
The curves demonstrated in this figure reflect that: (i) operation in the short run since fixed costs can be measured in the graph. (ii) a disequilibrium that will force some competitors to exit this market. (iii) how firms innovate new technologies in response to pro
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Glynn s weekly income would be the highest at: (1) point a. (2) point b. (3) point c. (3) point d. (4) point e. Discover Q & A Leading Solution Library Avail More Than 1423710 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1947258 Asked 3,689 Active Tutors 1423710 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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