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The United States is considered to be an industrialized nation because we have such a high standard of living. Countries with lower standards of living are considered to be emerging or developing nations. What factors prevent developing countries from becoming developed? Why? What are the responsibilities of industrialized nations to developing nations in this regard? Why? What are the responsibilities of businesses in industrialized nations to businesses in developing nations? Are there any? Why? Why not?
Explain determination of national income using aggregate demand-aggregate supply and saving-investment methods for a three sector economy.
unplandned change in inventory are coutned as investment spending by firms
Economic functions of money - A medium of exchange This is its most important role. Without money we would live in a barter economy where we would have to trade goods and
what have you learned from the class
Gross Domestic Savings Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wil
dynamic multipier
Q. Consumption function in the AS-AD model? Consumption. Suppose that P increases by say 10% whereas real GDP (Y) is constant. Nominal GDP and nominal national will now have
Give example to calculate the price level Imagine that we have created a particular basket of services and goods. We calculate price level at four different points in time duri
Explain the multiplier effect with example Deposits and loans in banks give rise to an important multiplier effect. We use a simple example to illustrate this effect. Consider
Which of the following will cause property crime to increase? a) An increase in jail terms. b) A decrease in personal incomes. c) An increase in the probability of arrest.
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