In 1997 the Bank of England was given independence over monetary policy in the UK. It was given the role of setting interest rates on a monthly basis for the purpose of achieving an inflation target of 2% (+/-1%) as measured by the CPI. The diagram above shows a short run aggregate supply curve and how an increase in interest rates may affect it. If the change is successful consumption‚ investment‚ and exports will decrease and imports will increase. This will result in the AD curve shifting
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ECON101: Macroeconomic Essentials for Business Assessment 1 Tutorial 7: Section A---Question 2 2. The economy is in a recession and there is a large recessionary gap. How does the government close the recessionary gap? Explain with diagram. The main ways that government uses to adjust economy are fiscal policy and monetary policy‚ but if the economy is in a recession‚ no matter how low interest rates are‚ people cannot be forced to borrow if they do not have confidence in the economy. Therefore
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MICRO-ECONOMICS ASSIGNMENT Q(1) Explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing economies of scale and cite causes and examples. Ans. The law of diminishing returns is also called the law of variable proportion‚ as the proportions of each factor of production employed keep changing as more of one factor is added. The law of diminishing returns does not imply that adding more of a factor will decrease the total production‚ a condition
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The Built & Human Environment Review‚ Volume 3‚ Special Issue 1‚ 2010 Using Grounded Theory Methodology and Rich Picture Diagrams in analysing Value Creation in Houses of Culture Projects in Sweden Laurell Stenlund‚ K. Kristina.Laurell-Stenlund@ltu.se Luleå University of Technology‚ Luleå‚ Sweden Abstract What kind of value does a public building for cultural activities create for clients‚ construction professionals and users? One approach to understand the complexity of ongoing processes
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Analyze the strengths and weaknesses of faith as a basis for knowledge in religion and in one area of knowledge from the TOK diagram. It is said‚ “When you have come to the edge of all light that you know and are about to drop off into the darkness Of the unknown‚ Faith is knowing One of two things will happen: There will be something solid to stand on or You will be taught to fly.” For as long as man has been known to exist‚ there has been a development of belief systems formed to explain unknown
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Elasticity is a measure of responsiveness. It shows us how much something changes when there is another change in one of the other variables that determines it. There are three elasticities of demand that we consider‚ price elasticity of demand (PED)‚ income elasticity of demand (YED) and cross elasticity of demand (XED). An important aspect of a product’s demand curve is how much the quantity demanded changes when price is changed. The economic measure of this response in the price elasticity
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MEMO To: From: Re: Date: Carlos Ghosn‚ Chief Operating Officer‚ Renault-Nissan Joseph Klein‚ Senior Consultant‚ Klein Consulting Bolstering Renault-Nissan April 30‚ 2012 Executive Summary: Renault-Nissan is no longer able to rely on their previous strengths. Nine years after the 1999 alliance we are once again being met with a transforming automotive industry. In order to ensure our place as a future industry leader we must take immediate action. Major trends seem to be concentrating on safety
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Provides evidence for Unit 18 D1 Distinction. Describe the process of protein synthesis in your own words‚ including the roles of mRNA and tRNA. You MUST include diagrams to aid in your explanations Messenger ribonucleic acid (mRNA)‚ which is like DNA has a unique code that is in a number of different patterns‚ which engages in the sending messages to the structures within the cell. Transfer Ribonucleic Acid (tRNA) is a nucleic acid‚ which is involved in the process of protein synthesis inside
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of the area surrounding the factory. we can see this from the diagram below. When there is a negative production externality‚ the market overallocates resources to the production of the good and too much is produced with respect to the social optimum. This is shown by Qm>Qopt and MSC>MSB at the point of production. Whenever there is an externality‚ there is a welfare loss due to the wrong allocation of resources. In the diagram below‚ the area that is shaded represents the welfare loss. MSC>MSB
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The European Union sets guaranteed prices to farmers for agricultural products. This is in order to encourage production. Show how this can happen with a supply and demand diagram. The provision of food is extremely significant for the human well-being so agricultural markets have always been treated in a different way by governments. There are various factors on which the success of farmers depends. It is not a simple production that needs a certain amount of resources to manufacture a certain
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