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.
"If for a certain market, the concentration ratio CR4 (the combined market share of the 4 largest firms) is 1, its Herfindahl index is at least 0.25." Describe the given statement.
Fiat money is not a new idea. Some European historians recognize the first use of fiat money in Europe resulting from gold and silver smiths issuing their customers receipts for g
Government Production: Some production in the economy is undertaken directly by governments (or several kinds of government agencies) in order to meet public requirements (as disti
how do you calculate opportunity cost
#queIn a particular year, an organization earns cash revenues of Rs. 2,00,000. Total material and labour expenses are Rs. 1,09,000. The depreciation claimed on the equipment is Rs.
How has the haberler''s theory of opportunity cost an improvement over the classical theory of trade
(a) Describe clearly how the interest rate is determined in: (i) Loanable Funds Framework; and (ii) Liquidity Preference Framework. (b) According to Liquidity preference
Austrian economics is a brand of neo-classical economics that was established in Vienna during the late 19th century & first half of the 20th century. Austrian economics was strong
Profits University creates student credit hours (y) with two inputs: Professors' hours of work (x1) and TAs' hours of work (x2) according to the manufacture function: f(x1,x2)= 10x
Define and explain the following economic terms: Economics, Microeconomics & Macroeconomics Positive vs. Normative Economics Law of Diminishing Marginal Utility Opport
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