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Problem 1:
i) How might unemployment arise?
ii) Critically explain how fiscal policy can be used to reduce the unemployment rate in an economy.
iii) ‘'Inflation always comes at the expense of unemployment''. Comment.
Problem 2:
i) Briefly identify the cases for government intervention in an economy.
ii) Suggest and evaluate ways of how government actually intervenes in such a situation.
Factors that determine the volume of side of production
15 and 16
Explicit cost: Explicit costs are payments made by the firm when it purchases or hires factors of production for the production of goods and services. They are also referred t
Bank for International Settlements: An international financial regulatory organization based in Switzerland, Bernethat designs international regulations regarding capital adequacy
Jeremy is an economics student who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his u
SUMMARY OF THEORY OF PRODUCTION
Increasing returns to scale and decreasing returns to scale: Increasing returns to scale occur when increases in all inputs by a certain percentage cause a relatively higher p
#questThe demand for and supply of labour in a certain industry are given by the equations Nd = 400 - 2w Ns = 240 + 2w Where Nd ( is the number of workers employers want to hire
Arbitrage Pricing Theor y Arbitrage defines the procedure of continuously buying a security for privacy, currency, or commodity on one market and selling it in another
Unemployment Rate A measure of labor force utilization the unemployment rate is equal to the number of people which is unemployed as a percentage of the total labor force.
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