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Paradox of Thrift: An individual household, governmentor business may attempt to save money by reducing their current expenditures. Though those attempts to save, once amalgamated at the level of the overall economy, may decrease aggregate spending levels and thus output and employment, hence undermining overall growth or even causing a recession. If this takes place, revenue of households, businesses, and governments will decline and overall saving may end up no higher (and possibly be even lower) than before effort to boost savings. Due to this paradox, it's not typically possible to improve economic performance by boosting saving
A surplus on the current account of balance of payments can be financed by? 1. Inflow capital on capital account 2. A surplus on the government budget deficit 3. lending abroad on
williamson''s model of managirial discretion
A competitive firm produces output using three fixed factors and one variable factor. The firm’s short-run production function is q = 154x – 5x2, where x is the amount of variable
Why is it true that shortages usually occur mainly when price controls are in effect? In the nonexistence of price controls the shortage generally goes away quickly because price
Suppose the total demand for wheat and the total supply of wheat per month in a market are as follows: a. What will be the market or equilibrium price? What is the equilibrium q
Why do actinides exhibit o.s equal to the sum of the valence electrons.
Measures used to restrict International Trade: These are taxes imposed on traded commodities as they cross national boarders. These are two main types of tariffs. An import ta
My current car gets 10 miles to the gallon and no resale value, but it will last 5 years for sure. I can always buy a new car for 8000 dollars that gets 20 miles to the gallon. A g
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under which market structure does the banking sector fall?
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