Surplus of AD over AS-Inflationary gap
Does a surplus of AD over AS always entail a condition of inflationary gap? Answer: No. Inflationary gap takes place only if AD > AS equivalent to full employment level of employment.
Does a surplus of AD over AS always entail a condition of inflationary gap?
Answer: No. Inflationary gap takes place only if AD > AS equivalent to full employment level of employment.
Describe whether the sale of old scooter is comprised in national income?
What is the difference among the discount rate, prime rate and the subprime rates of interest? Which interest rate in particular build the 2008 recession? Explain how that happened.
In a graph of competitive market in equilibrium, the net surpluses producers and consumers enjoy generally equivalents the area among the: (i) Demand and supply curve however to the left of point of the market equilibrium. (ii) Horizontal axis and a 45°line origin
Bank rate: This is the rate at which the central bank loans money to commercial bank.
Question: Compare and contrast 'adaptive expectations' (Hubbard uses adaptive expectations) and 'rational expectations' in modeling expectations. Answer:<
(a) Do you think that macroeconomic policy should be designed to achieve a measured unemployment rate of zero?
The market system's answer to the fundamental question "How will the system promote progress?" is essentially:
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If the MPC is .70 and investment increases by $3 billion, the equilibrium GDP will:
Elucidate the differences among the frictional, structural, and cyclical forms of unemployment.
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