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What is Real GDP
To be able to make reasonable comparisons of GDP over time, we must adjust for inflation. For instance, if prices are doubled over 1 year then GDP would double although exactly the same services and goods are produced as the year before. To eliminate effect of inflation we divide GDP by a price index and we define real GDP as GDP divided by a price index.
concept of static and dynamic multiplier
When investment banks underwrite IPOs, they are typically sell stock for 5-10 percent more than they pay for it. When they underwrite stock for companies that are already public, t
using the ppf model explain the principles of economics of allocative efficiency
What is top marginal rate of taxation?
Think of a business firm you recently visited (such as Walmart, Home Depot, Red Lobster, Barnes & Noble, McDonald's, etc.). What motivated the producers of all the individual produ
Suppose that the government wishes to decrease the market equilibrium monthly rent by increasing the supply of housing. Assuming that demand remains unchanged, by how many units of
Income and Substitution Effects of a Price Change Indifference curve analysis can be used to separate the income effect (IE) from substitution effect (SE). This is shown in Fig
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long run supply curve
Describe dynamic multiplier
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