Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
measures to control inflationfiscal policy is one of the two main macroeconomic policies used to control aggregate demand and thereby achieve
causes of inflationexcessive growth in wages relative to productivity can cause inflationary pressures this causes aggregate demand to increase
effects of inflationon income earnersthose on fixed incomes or assets fixed in nominal terms lose however those on incomes which are directly related
demand pull inflation and cost-push inflationdemand pull inflationit describes a sustained increase in the general price level that is caused by a
inflation and unemploymentinflation describes a persistent and an appreciable increase in the general price level the inflation rate is measured as a
modern economyit explored the role of money in every modern economythe chapter also revealed that it is necessary for the government to ensure
determinants of investmentsexpected rate of returninvestment spending is guided by the profit motive thebusiness sector buys capital goods only when
aggregate household indebtednessthis is the purchasing power of the sum of money outstanding that households have borrowed and are currently
wealth this is a stock of accumulated purchasing power stored up from the pastfor example if you have a fat savings account accumulated from your
stock of durable goods on handif the economy has enjoyed an extended period of prosperity consumers may find themselves well supplied with various
national income determinationnational income determination deals with what determines the size of a nationrsquos national income the size of a
national income accountingfinal goods final goods are goods and services which are being purchased for final use and not for resale or further
problems relating to national income estimationchanging prices of goods and services prices of goods and services do change from one period to
uses of national income statistics- it helps to organize economic data and activities- it helps to classify economic activities into various segments
national income the national income or product or expenditure provides a measure of total value at factor cost of final goods and services which are
monopolistic competition and oligopolyit was recognized that most industries exhibit the features of monopolistic competition in real-life however it
pure monopolypure monopoly examined the market structure that is generally regarded as the polar opposite of perfect competition ndash ie the
perfect competitionthe behaviours of firms in perfect competition it should be noted that firms that fit into perfect competition model are very rare
economic profit and economic losseconomic profit is the excess if total revenue over total cost when the latter includes both explicit and implicit
normal profitnormal profit is when total revenue is exactly equal to total cost when the latter includes both explicit costs it is the type of profit
difference between accounting profit and economic profitthe difference between accounting profit and economic profit is that economists include in
economies of common servicesthrough the concentration of firms in a particular industry in a given geographical location the firms may enjoy
sources of external economies of scaleeconomies of skilled labour this involves upgrading the skills of labour through the provision of education and
managerial economies these are many managerial economies associated with large-scale production a large firm is in the position to employ more highly
financial economies these are benefits obtained by large firms as a result of contracting credit from financial institutions at lower interest rates