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capital accountthe capital account deals with long and short-term capital movementthese capital movements are referred to as autonomous because they
balance of paymentit is an account that summarizes a countryrsquos total payments and total receipts from international economic transactions within
measures used to restrict international tradethese are taxes imposed on traded commodities as they cross national boarders these are two main types
protection against dumpingit could be looked at as the export of commodities priced below cost of production dumping is generally looked upon as an
protection of infant firmsinfant industries are those firms which are young the absence of economies of scale to them makes their unit cost of
gains from international tradeit leads to increased total world production of goods and services international trade based on comparative cost
international tradeinternational trade refers to the exchange of goods and services between countries goods sold to other countries are referred to
structural unemployment this is unemployment resulting from changes in the pattern of demand for goods and services or changes in technologythese
frictional and cyclical unemploymentfrictional unemploymentit refers to unemployment caused by changes in individual labour markets this is the type
types of unemploymentfrictional unemployment-it refers to unemployment caused by changes in individual labour marketsthis is the type of unemployment
unemploymentunemployment refers to a situation where people who are willing and able to work do not find jobs at the existing wage ratefor a person
measures to control inflationfiscal policy is one of the two main macroeconomic policies used to control aggregate demand and thereby achieve
causes of inflationexcessive growth in wages relative to productivity can cause inflationary pressures this causes aggregate demand to increase
effects of inflationon income earnersthose on fixed incomes or assets fixed in nominal terms lose however those on incomes which are directly related
demand pull inflation and cost-push inflationdemand pull inflationit describes a sustained increase in the general price level that is caused by a
inflation and unemploymentinflation describes a persistent and an appreciable increase in the general price level the inflation rate is measured as a
modern economyit explored the role of money in every modern economythe chapter also revealed that it is necessary for the government to ensure
determinants of investmentsexpected rate of returninvestment spending is guided by the profit motive thebusiness sector buys capital goods only when
aggregate household indebtednessthis is the purchasing power of the sum of money outstanding that households have borrowed and are currently
wealth this is a stock of accumulated purchasing power stored up from the pastfor example if you have a fat savings account accumulated from your
stock of durable goods on handif the economy has enjoyed an extended period of prosperity consumers may find themselves well supplied with various
national income determinationnational income determination deals with what determines the size of a nationrsquos national income the size of a
national income accountingfinal goods final goods are goods and services which are being purchased for final use and not for resale or further
problems relating to national income estimationchanging prices of goods and services prices of goods and services do change from one period to
uses of national income statistics- it helps to organize economic data and activities- it helps to classify economic activities into various segments