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What is Supply-side Economics Market Freedom?
Markets must be allowed to work more freely and steps taken to improve this efficiency by:
freeing them from government controls (e.g. income policy, minimum wage regulations, pricing policies of the nationalized industries);
promoting competition;
restricting the power of trade unions;
the privatization program;
introducing competition in the natural monopolies by new devices;
removing institutional barriers in the capital market (e.g. exchange control, the Stock Exchange);
using the rate of interest (the price of liquid capital) as the main weapon for adjusting aggregate demand.
Assume the marginal propensity to consume = .8, and government purchases increase by $.2 Trillion. 1. Potentially, how much will real GDP increase in the short-run after the inc
You win a lottery. You have the choice of two ways to be paid. If you pick Payout Scheme X, you get $2,750 today. If you pick Payout Scheme Y, you get three payments: $1,000 today,
1. An unemployed individual decides to spend the day fishing. The opportunity cost of fishing is equal to A) The cost of bait and any other monetary expenses. B) Zero, becaus
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Central bank and monetary policy By monetary policy we mean the policy directed at controlling the money supply and the interest rates. In most countries, the central bank is r
DEFINE IS CURVES AND DRIEVE IT
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