What are expansionary and contractionary effects, Microeconomics

Assignment Help:

What are expansionary and contractionary effects? 

Expansionary effect refers to the effect of raising the equilibrium level of national income. For example, an increase in government spending will have expansionary effect on the equilibrium level of national income. On the contrary, contractionary effect refers to the effect of lowering the equilibrium level of national income. For example, enhance in tax will have contractionary effect on the equilibrium level of national income. 

 


Related Discussions:- What are expansionary and contractionary effects

Price discrimination and bundling, We consider two regions A and B. Each ma...

We consider two regions A and B. Each market has the same size (i.e. number of consumers) but differs in the willingness to pay for one unit of the good proposed by the firm. On ma

income and cross elasticities of demand, What are the income and cross ela...

What are the income and cross elasticities of demand?  Why might they be useful?  Explain.

Assignment, Individual Assignment ECO101 - PRINCIPLES OF ECONOMICS elect...

Individual Assignment ECO101 - PRINCIPLES OF ECONOMICS electronic submission via Moodle 6 Questions 100 marks (15% of total course) All questions should be attempted. 30-50 w

Determine the profit maximizing price and quantity, Determine the profit ma...

Determine the profit maximizing price and quantity A firm has segmented its market into the following demand functions: P1 = 500 – 50Q     P2 = 500 – 20Q     with a cost fu

Find the monopsony first mover competitive fringe buyer, Draw the suitable ...

Draw the suitable graph for each situation and describe a real world situation in health care in which the market structure utilized in the question may exist. Demand: P=6,000-0

Briefly explain the main macroeconomic objectives, Briefly explain the main...

Briefly explain the main macroeconomic objectives of governments. Definition of macroeconomic issues Growth a)      Enhance in national income per unit of time, a

Determine the cross elasticity of demand, Determine the Cross Elasticity of...

Determine the Cross Elasticity of Demand Measures the responsiveness of demand for good A to a given change in the price of good B. It is an significant piece of information to

Externalities, What are externalities? Give an example of positive and nega...

What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd