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Explain crowding out and why it may be considered important for policy makers.
Crowding out refers to how enhanced government borrowing (real borrowing!) might serve to raise interest rates and basically makes scarce resources which could be used by firms. Basically, government borrowing crowds out an amount of confidential investment. There is also a monetarist/classical and Keynesian distinction herein, where the former view a high probability of (complete) crowding out and the latter view the effects as limited.
define and explain the concept of social efficent production
traditional theory of cost
Prove that the utility approach and the indifference curve approach yield the same consumer equilibrium.
contrast the longrun equilibrium positions of monopolistic competition firm and oligopoly
Tc and TVC curves have an inverted s-shape
Population census: A population census is the head count of people living in a geographical area or in a country. A population census collects comprehensive data on people to
1. Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs. 2. There are two demand curves for a pri
Ask question #Minintroduction to recent development in demand theory
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