Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Economic Growth Cyclic Fluctuations
At this stage, it is useful for us to understand the difference between economic growth and cyclical fluctuations.Economic GrowthEconomic growth refers to the positive trend in the nations' total real output or GDP over the long-run. It causes a gradual but continual rise in potential GDP. Every economy desires to accelerate the rate of economic growth because it means increase in real GDP is the main source of raising the stand of living of the people over the long-run.LRAS cure, which is vertical, represents the potential GDP (Y*) where all the availed resources are fully utilized. Economic growth causes rightwards shift in the SRAS curve, indicating that the actual GDP which converges into potential GDP keeps on rising year by year. Hence the long-run is not a period in which everything settles down, because growth is a continuous process. The movement in LRAS cause a continuing movement in potential GDP (Y*)Cyclical Fluctuations Cyclical fluctuations or business fluctuations are the frequent changes in the level of business activates which repeat themselves after regular intervals. Cyclical fluctuations in GDP are caused by the demand and the supply shock which cause shifts in the AD and SRAS curves. As a result of the supply stocks, the actual GDP deviates temporarily from the potential GDP.The demand shocks are caused by change in the private consumption spending, government expenditure and taxes, net export, etc. the supply shocks, on the other hand, are caused by changes in the input prices, including the wages of the workers and technological changes, which influence the productivity and efficiency of resources. The period of the cyclical fluctuations varies from one country to another and also from one year to another.
Relate central banks with commercial banks In many countries, the central bank imposes reserve requirements. This means that commercial banks are obliged to hold a certain perc
Classical Quantity Theories Quantity theories have had a long history and a widespread use in economics. As originally formulated these were not explicitly designed as theories
Q. Explain about Household savings? Remember that consumption may refer to observed consumption as well as to demand for consumption. The same is true for 'household savings',
definition, argument to protectionism and argument against protectionisms
What do you presume had happened to get the U.S. corporations and workers to take their eyes off of their own economic interest? It seems the "carrot" of cheaper prices were dangle
Calculating interest rates on a yearly basis If maturity is different from one year, interest rate is generally recalculated to a corresponding one year rate. For instance con
Augmented Saving An alternative way of determining equilibrium GDP is to find the level of income where the sum of desired injections equals the sum of desired leakages. Desi
In principle, outsourcing makes things a little inexpensive and enhance profitability. Though, some things require to be done 'in house'. For example, some employers (largely) outs
Q. How to control Monetary policy? Remember that the money supply is equal to the money multiplier times the monetary base. We will presume that money multiplier is constant an
distnguish betweenNational income at market price and National Income at factor cost, explain the importance of the distinction
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd