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How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
Consider an economy that produces only three types of fruit: apples, oranges & bananas. In the base year the production & price data are as follows: Fruit
what is credit multiplir and how does it work
Relate central banks with commercial banks In many countries, the central bank imposes reserve requirements. This means that commercial banks are obliged to hold a certain perc
THE MULTIPLIER ANALYSIS Multiplier analysis explains what happens to circular flow of economic life when the behavior of one of the sectors or the components of aggregate dema
Money is anything which is acceptable in settlement of a debt. But, paradoxically, the main asset used to settle debts in modern economies is other debts. After all, bank deposits
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in a. the demand for this wine b. the supply of
Privatization is the move of ownership from the public sector (government) to the private sector (business).
distnguish betweenNational income at market price and National Income at factor cost, explain the importance of the distinction
Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for ea
State the Private sector in the circular flow Private sector total income is known as the national income. As private sector receives entire return from the factors of prod
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