Excess demand in macro economics
What is meant by Excess demand in macro economics: In macro economics, if aggregate demand is greater than aggregate supply at full employment level, then there is excess demand.
When the world price for this year’s wheat crop is $10 per bushel, and Del, a profit maximizer one who owns the biggest wheat farm within North Dakota: (i) is a quantity taker and a price adjuster. (ii) cannot generate an economic profit into th
Government banks function: The central bank conducts the banking account of the government departments. This performs similar banking functions for the government as commercial bank executes for its customers. This accepts their deposits and undertake
Assume that a firm with the market power in output market wishes to grow and that hiring more workers needs it to increase salaries 8 percent for all the workers. The output prices will most likely: (i) Increase 8 percent to cover the wage rise. (ii) Increase less tha
What is the condition when there is a deficit in balance of trade? Answer: When import > export
I have a problem in economics on Derived Demand for resources. Please help me in the following question. As demands for the resources ultimately based on consumer’s demands for goods then the demand for labor is: (1) Termed as a derived demand.
I have a problem in economics on History of Industrial Unions. Please help me in the following question. Industrial unions historically tried to systematize all the workers in: (i) A Specific Company or broad industry. (ii) The United States. (iii) A specific craft or
Owners of corporate stock obtain pure economic profit only to the extent which the rates of return realized by owning the stock exceed the: (1) interest rate that would have been produced by other investments entailin
A predictable reluctance through modern welfare recipients to trade all they own for the material possessions of a rich person by a much earlier period would be evidence which poverty is: (w) easily solved by income redistribution pro
Central bank executes the function of a clearing house. Explain how? Answer: Each and every bank keeps cash reserves with central bank. The claims of banks against
Firms that should contemplate the potential reactions of rival firms while adjusting their pricing and output to maximize long run profit are operating within an industry which is: (1) perfectly competitive. (2) purely competitive. (3) monopolisticall
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