Macroeconomy, economics, Microeconomics

Adding the economic activities of government to the circular flow model shows that:
1. Government spending creates inflation
2. Government purchases of goods and services, taxes, and transfer payments affect how resources are allocated
3. The Federal government has to borrow funds from households in order to pay salaries to public officials and members of the armed forces
4. The economic functions of government are shared equally among Federal, state, and local governments
Posted Date: 3/4/2012 11:42:47 AM | Location : United States







Related Discussions:- Macroeconomy, economics, Assignment Help, Ask Question on Macroeconomy, economics, Get Answer, Expert's Help, Macroeconomy, economics Discussions

Write discussion on Macroeconomy, economics
Your posts are moderated
Related Questions
how to write an half equation

Average Total Cost (ATC): ATC is the total cost per unit of output. ATC = TC/y = (TFC + TVC)/y = AFC +AVC ATC falls sharply at the beginning of the production process because

what is International Cartels and Commodity Agreements? Describe briefly International Cartels and Commodity Agreements, what are Commodity agreements?

THEORY OF DEMAND: The  consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory th

Partial Input Elasticity of Output:   This is a short-run concept which deals with the variability of only one factor keeping the others constant. There are three kinds of retu

Discuss the concept of dynamic multiplier


Credit Squeeze:At times private banks become reluctant to issue new credit andloans, frequently because they are worried about risk of default by borrowers. This is common at the t

Q. Define about Mutual Fund? Mutual Fund: A financial vehicle that involves pooling investments in the shares of many different joint stock (or publicly traded) companies, in o

Valence Bond Theory Explains, but does not predict the shape. Valence Bond Theory Cannot explain colour and spectra. Valence Bond Theory Qualitative explanations; does not expl