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Government Budget Deficits
Governments have been traditionally spending more what they could earn by way of taxes and sale of economic goods and services produced by them. The resultant deficit (variously known as budget deficit or fiscal deficit) could be financed by mobilization of create more jobs and thereby help the economy generate more income. But the way of financing government expenditure has many other implications, many of these may prove adverse: (i) budget deficit may prove inflationary, especially if the economy fails to generate more output; (ii) a large part of domestic saving may be cornered by the government; adequate saving may not be available for private investment; and (iii) this may put pressures on market rates of interest. Macroecomics has paying more attention to these issues in recent years.Interest RatesIn the globalising world of today, interest rates have come to occupy centre stage. Globalisation implies cut-throat competition. Successful globalisation requires that all the actors work to their best efficiency; none of them would like be competed out because they have to pay high rates of interest. Therefore, how to keep interest rates low is the issue that has attracted the attention of economists.Balance of PaymentsAgain, in globalising, increase free market economies, goods, services and capital are flowing across national borders as never before. The cross-border transactions in goods. Services and capital give rise to payments and receipts in foreign exchange. Exchange rates, wherever they are left to be determined by market forces, exert their own influence on international economic relations. Therefore, a proper analysis of balance of payments has been a core issue in macroeconomics.
What is a natural monopoly Define natural monopoly as a situation where the advantages of scale a fixed costs are so high that it is impossible to fully exploit them. MC and AC
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Example of a cost function
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On what kind of income is our taxing system based?
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Hi, My Econ prof gives out a sample exam two days before we take the real exam. If I were to submit the sample exam to you, how long would it take to get the answers back?
Privatisation of the Economy: Privatisation has to be viewed in two ways: In a narrow sense, it implies the induction of private ownership in a public sector undertaking. In a
Suppose that doctors shift away from a fee-per-visit system and are instead paid set annual salaries. What effect will this have on the supply and demand situation for the health
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