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Q. Explain about Counter-Cyclical Policies?
Counter-Cyclical Policies:Governments may take many different actions to offset ongoing booms and busts of private-sector economy. These policies include fiscal policies (increasing government spending when economy is weak), monetary policies (cutting interest rates when required to stimulate more spending) and social policies (such as unemployment insurance) to sustain household incomes and spending even in a downturn.
Price: The price factor is another important variable to be included in demand analysis. Here one has to consider the prices of the product and also its substitute and complement
Measures to control inflation: Fiscal policy is one of the two main macroeconomic policies used to control aggregate demand and thereby achieve economic stability. Fiscal meas
Example: The Value of Clean Air Air is free in sense that we do not pay to breathe it. Question: Are benefits of cleaning up air worth the costs? People pay extra to buy
why sellers and producers keep pricess lower
Q. What is Heterodox Economics? Heterodox Economics:Different schools of thought (including post-Keynesian, Marxian, structuralist and institutionalist economics) which reject
the prevention of major swings in economic activity cn be handled most easily by the financial or government sector?
determination of rent
how can a price ceiling make consumers better-off? under what conditions might it make them worse off?
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why value of marginal product is negatively sloped
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