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Paradox of Thrift: An individual household, governmentor business may attempt to save money by reducing their current expenditures. Though those attempts to save, once amalgamated at the level of the overall economy, may decrease aggregate spending levels and thus output and employment, hence undermining overall growth or even causing a recession. If this takes place, revenue of households, businesses, and governments will decline and overall saving may end up no higher (and possibly be even lower) than before effort to boost savings. Due to this paradox, it's not typically possible to improve economic performance by boosting saving
Why is investment so important in an economy? Define investment as an enhance in capital stock and link this to broad macro issues; future output, enhance in living standards, ta
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of
If a person literally had “nothing else to do,” (a) What would be the opportunity cost of doing this homework?
Prove that utility approach and indifference curve yield the same consumer equilibrium
explain normal profits
#queA monopolist has a constant marginal and average cost of $10 and faces a demand curve Of Qd = 1000-10P. Marginal revenue is given by MR= 1000-1/5Q. stion..
Trends in the Growth of Production and Productivity: From an analysis of the trends of growth of production and productivity of agricultural sector as a whole and of differen
Discuss the concept of dynamic multiplier
what total cost function yields a U-shaped average total cost function
factor influencing quantity supplied
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