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Are markets the best way of solving the basic economic problem? Justify your answer.
The core of the economic problem ( who, what, for whom) is something all societies must address. Planned economies solve it by central price and output setting, while market economies solve it by the price mechanism. Both systems have their basic flaws.
Another issue is that of market failure, and how society addresses this
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What are expansionary and contractionary effects? Expansionary effect refers to the effect of raising the equilibrium level of national income. For example, an increase in gov
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