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Briefly explain the main macroeconomic objectives of governments.
Definition of macroeconomic issues
a) Enhance in national income per unit of time, a flow method
b) Enables the economy to improve living standards
a) Percentage of labour force employed
b) shows utilisation of social factor of production
a) steady rate of price enhance; change in CPI/RPI/GDP deflator
b) Permits predictability and reliability in the economic environment
a) balance of payments
i) equilibrium in foreign sector trade, i.e. exports and imports
b) exchange rate
i) stability in external value of currency
"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is this statement correct or incorrect? Explain.
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Prove that the utility approach and the indifference curve approach yield the same consumer equilibrium.
1- Explain how a policy mix (like the one used in 1990s) could help reduced to eliminate the budget deficit without having an adverse effect on the output. Illustrate your answer
short run equilibrium of the industry
Cost Push or Supply Inflation: It is a situation where the process of increasing price level is caused by increasing costs of production which push up prices. Cost push infla
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