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Price Mechanism
Price mechanism is the point, which equilibrates supply and demand within a market. It is a mechanism of pricing. The price mechanism is one, which permits the prices of goods and services to be determined by the interplay between supply and demand. There is no centralized price fixing. The price mechanism is the concept that the free market, when left to its own devices, will invent fair prices of the goods or services on its own by the natural laws of supply and demand.
Consider an economy characterized by the following Cobb-Douglas production function: Y=4K 1/4 L 3/4 Where K and L represent physical capitaland labor, respectively. Assume t
At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would b
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please,how do i relate keynesian theories on fiscal policy to the topic"impact of oil revenue on agricultural productivity?
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