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Process to control inflation rate
The belief that control of inflation must be the primary economic objective of government can be traced back to neo-liberal revolution that started in the mid-1970s. Free-market economists argue that price stability is necessary for long-term economic growth since it creates necessary conditions for business confidence and private sector investment. If inflation is seen to be out of control then confidence is destroyed, businesses become uncertain and economic activity stagnates.
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 about the circular-flow of economic activities. Circular-Flow of Economic Activities: Economic Agents: a. Households b. Firms Where they interact:
Moving along a demand curve, quantity demanded decreases 8 percent when price increases 10 percent. a. The price elasticity of demand is calculated to be____________ b. Given the
The Widget Manufacturing Company must replace a widget machine, and is evaluating the capabilities of two systems. A requirement of management is that the machine chosen must be p
What are the instruments of monetary policies
Granting a loan: When commercial banks lend, they create money. This can be explained by extending the hypothetical example of Bank
What is the present worth of a cash flow that gives you $6 in every time period from 1 to 20 when the interest rate is zero?
The AS-AD model with inflation When we remove assumption of constant prices to allow varying real wages. Resulting model was known as AS-AD model. Similarly we now remove the a
Oligopoly is a marketplace where the deliver is controlled by a small group of companies. In this condition, the actions of single company will have a material effect on the whole
how is it calculated
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