Questions 1. Which of the following events would cause a decrease in the equilibrium interest rate in the short-run money market? For each event‚ simply state YES or NO. a. The price level increases‚ Ceteris Paribus. b. The FOMC conducts open market sales of existing bonds‚ Ceteris Paribus. c. The aggregate demand shifts to the left‚ Ceteris Paribus. d.The Fed increases the required reserve ratio‚ Ceteris Paribus. e. The Fed increases the money supply‚ Ceteris Paribus. f. The money demand
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supply-side are some examples of the policies which government can promote to achieve economic growth or increase real GDP. Practically to increase the economic growth‚ it involve in either aggregate demand or aggregate supply. Demand side policies will comes into place and act as an important role during a recession or market stagnant. It is aim to increase aggregate demand and if there is an excess space‚ it can engage a role in increasing the rate of economic growth. When settling long run growth
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purchase quantities where his purchasing power allows. 2. What must be true for a good to be normal and a necessity? To be a normal product‚ the consumer wants to get the product to meet a pleasure‚ desire or fill a void but to acquire that goods can choose and take into consideration the price‚ quality and quantity. As a product of necessity‚ the consumer needs as a priority the product to meet a need. A product of need is one product that meets your need and desire at the time but does not consider
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cardinalist school assumes that utility of a commodity can be expressed in terms of numerical units. According to this law‚ for any individual consumer the value that he attaches to successive units of a particular commodity will diminish steadily as his total consumption of that commodity increases‚ the consumption of all other goods being held constant. In other words‚ as the consumer consumes more‚ his total utility will increase but at a diminishing rate. The assumptions are that
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customer following the lower product price; they saved $500 million * Coles and Woolworths have control the milk price * Framer are jeopardising and no money * Reason : * Coles and Woolworths are too powerful * Coles and Woolworths can sell more product * This also affected a increasing profit * Shopper saved more money 2. Who are the key stakeholders that are impacted by the issue? * Coles and Woolworths * They are powerful * They control the product price
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The economic prosperity of the 1920’s brought upon negative social and cultural exchange to the U.S. society. Violence and racism by the KKK returns during this time and the alcohol ban gave many people a reason to break the law. The reorganization of the Ku Klux Klan (KKK) was a serious problem during the 1920’s. At one point in time‚ the Klan tried to intimidate the colored people of the area from casting their votes. They paraded throughout the day‚ and the police refused to respond to any calls
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Explain why there might be rapid economic growth in a country (10m) Economic growth measures the rate of change in the volume of output produced within the economy. It is a key indicator of the nation’s economic wellbeing. Rapid economic growth can be described as economic growth that occurs in a short period of time‚ or at a great speed. A country might experience rapid economic growth due to increases in aggregate demand which lead to actual growth‚ interest rates‚ exchange rates‚ as well as
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Definitions; Basic economic problem – Capital capital goods‚ or real capital are those already-produced durable goods that are used in production of goods or services. Command economy – economy where supply and price are regulated by the government rather than market forces Division of labour - Division of labour is the specialization of cooperative labour in specific‚ circumscribed tasks and like roles Enterprise- simply another name for a business. Free market economy - is an economy in
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1. Why study economic history? It is important to study economic history for a number of reasons‚ those which I will discuss in my answer include the fact that the study of economic history is fascinating and it tells us who we are‚ in addition to the fact that history gives perspective‚ and finally I will give a short account of how history tests theory. To begin‚ the study of economic history is fascinating‚ and when it is valued on the grounds of its intrinsic worth‚ it is very valuable
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and foremost‚ both of these terms mentioned are sub-categories of economics itself. As the names of ‘micro’ and ‘macro’ imply‚ microeconomics facilitates decisions of smaller business sectors‚ and macroeconomics focuses on entire economies and industries. These two economies are mutually dependent‚ and together‚ they develop the strategy for the overall growth of an organization. They are the two most important fields in economics‚ and are necessary for the rise in the economy. Microeconomics focuses
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