principles of macroeconomics
Explain the concept of “economies of scale” and “increasing returns”.
What is meant by the term business cycle as described by economists?
The consumer maximizes the utility whenever spending patterns causes: (i) Total outlays to increase each time prices are altered. (ii) Marginal utilities of each and every good consumed to be equivalent. (iii) Marginal utilities from the last cent spent on each and ev
With the help of graph discuss the determinants of transaction demand.
In poor countries people spend a big percentage of their income so that APC and MPC are high. Yet, the value of multiplier is low. Explain why?
Describe Aggregate Expenditure model and also state AD/AS model?
A tax is shifted forward when the tax burden causes the: (w) consumers to pay higher prices. (x) lower purchasing power for the party bearing the legal incidence. (y) workers to experience lower take home wages. (z) decreased dividends to corporate st
The practice explores how monetary policy influences the economy and the type of factors which are significant in finding out the Monetary Policy Committee’s decision.
DISCUSS the experience of high GNP countries and low GNP with regard to PQLI.
Tariffs: -are also called import quotas. -may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). -are per unit subsidies designed to promote exports. -are excise taxes on goods exported abroad.
What occurs to economy, when credit availability is limited and credit is made costlier? Answer: Aggregate demands falls
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