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!
Q. Level of aggregate demand in economy?
Demand-pull inflation takes place when there is an increase in level of aggregate demand in economy. Aggregate demand comprises five components that are defined in following equation:
AD = consumption + investment + government spending + (exports - imports)
When there is an increase in one of the components - investment, consumption, government spending or exports - the level of economic activity in economy will rise and real national output will surge. This will be signified on a diagram as AD shifting to right. Though as aggregate demand increases there will be greater pressure on resources and firms supplying services and goods may face the problem of excess demand specifically if production capacity is limited. This will consequence in businesses increasing prices and/or employing more overtime workers less efficiently to satisfy demand. The higher prices will feed in the inflation indices RPI and CPI as the price level rises at the same time as GDP growth takes place (providing there is spare capacity in economy).
Demand-pull inflation has been caused mostly by the growth in consumption spending, caused by rising levels of disposable income that in turn stems from a combination of increased employment, lower interest rates, tax cuts, easy credit as well as increased household confidence.
I wont final Exam
How have economists traditionally defined "economic growth," and how is that different from "living standards growth"? Economists have traditionally explained economic growth
Comparison of sameulson revealed preference theory with the Hicksian revealed preference theoru
Allocation Function The shifting or reallocation of production property into or out of markets based on shifts in prices for the products or services produced in that market.
ways of imroving productivite
The following are AC and TC functions for various firms (i). AC = 140/Q + 20 (ii) AC - a/Q = k (iii) TC - 10 =2Q + 0.1Q 2 (iv) TC - k - βQ = cQ 2 Where a, k, β and
Transfer Payments: Governments typically redistribute a share of tax revenues back to specified groups of individuals in form of several social programs (like welfare benefits, pub
what are the advantages of monopsony?
Why is human capital so important in the development process? Explain human capital in terms of (the sum of) education/training/experience/ literacy etc, and clearly show how t
Deadline is 20 Hours... 1. A. Explain how one derives the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concav
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd