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Private sector in the circular flow The private sector total income is known as the national income. Because private sector receives the entire return from the factors of pr
Axiom of completeness: Consumer's choice is complete. Implication: Since consumer is rational, she must have a unique preference relation. That means the consumer choice is ei
#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”
Discuss whether high indirect taxes are best way to discourage smoking
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Q. Show the AD curve over time? With inflation, AD curve will no longer be stable over time. In its place, it will glide upwards or downwards at a rate determined by growth rat
The consumption function of an economy is given by c = 200+0.75(y-t) And the investment function by I = 200 = - 25r. Government purchases G and taxes Τ are both 100. T
Explain the meaning of a production possibilities curve
why is international trade important to sa
Q. What do you mean by multiplier effect? Loans and deposits in banks give rise to a significant multiplier effect. We use a simple instance to explain this effect. Consider th
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