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.
Question: Suppose firm 1 and firm 2 merge. Call the new firm A. It has output xA and profit πA. Suppose there is Cournot competition after the merger. For now, we assume that the marginal cost of Firm A, the mer
How does a commercial bank make money? Answer: Commercial banks are capable to make credit that is many times greater than deposits received by banks. Money creatio
Illustrate whether output generated for self consumption is comprised or not comprised in the value of output? Answer: The output generated for self consumption is
Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.
What relationship does the MPC bear to the size of the multiplier
Differentiate between APC and MPC. The value of which of them can be greater than another and when? Answer: APC is the average
What is Supply schedule and how it is related to supply curve?
The value of nominal GNP of an economy was Rs. 2,500 crores in a specific year. The value of GNP of that country throughout the same year, computed at the prices of some base year was Rs.3000 crores. Evaluate the value of GNP deflator of the year in terms of percentag
How can Equilibrium of a market be exist?
How Bank rates control the credit? Answer: Bank rate is the rate of interest at which the Central bank lends to Commercial banks. By increasing the bank rate centra
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