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.
‘The country is at present in recession and this has led to worse tax revenue and high expenses. The effect is a huge deficit. The government decides to increase taxes and lower government expenses. Is this an excellent idea?’
What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls
‘What occurs in the money market when there is a raise in income?’
When a tax on goat cheese is completely paid by consumers via higher prices, then the tax has been: (i) alleviated. (ii) Forward shifted. (iii) Backward shifted. (iv) Actualized. (v) Randomized. Can someone help me in getting throu
What is the basic difference between Market Supply and Individual Supply?
Substitutes: The two goods for which a rise in the price of one good leads to a rise in the demand for another.
What is the relationship among interest rate and bond prices? Is there any difference among T-Bills versus Corporate bonds in reaching your assessment? Whenever the stock market falls, where do you assume that most investor place their money and why?<
In the figure shown below, line T1 depicts a tax system which is: (1) Regressive. (2) Progressive. (3) Proportional. (4) Unbiased. (5) Recessive.
Would export businesses choose a rising or declining dollar? Would it be similar for a European tourist on a budget and visiting the Grand Canyon? Explain your answer.
What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.
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