The phenomenon is much more widespread in microeconomics, which can focus attention on the detailed behavior of individuals or small groups. Since its basic characteristic is the aggregation of economic agents' behaviors, macroeconomics must necessarily be less discriminate, characterizing individual ...
What term is best described as the branch of economics that focuses on broad issues such as growth, unemployment, inflation, and trade balance? What are some of the most important/pervasive models in macroeconomics? What is the "current macroeconomic situation" in the ...
3. The current age pension system in Australia is best described as a pay-as-you-go system where current benefits are largely paid by current taxes. An alternative system is a fully funded system where workers’ contributions are saved and repaid with interest upon retirement. How would a ...
Keynesian economics was largely founded on the basis of the works of John Maynard Keynes. Keynesians focus on aggregate demand as the principal factor inissues like unemployment and the business cycle. Keynesian economists believe that the business cycle can be managed by active government intervention...
The U.S. dollar can best be described as fiat money Which of the following is included in M2 but not M1? Money market deposit accounts in banks The Federal Reserve uses two definitions of the money supply, M1 and M2, because ...
Yet, under DCP, monetary authorities realize that, conditional on stabilizing domestic demand, there is nothing they can do to further stabilize the terms of trade. As a result, a domestically oriented monetary policy that stabilizes local prices already achieves the best possible results for the ...
Reading 15 The Firm and Market Structures PRACTICE PROBLEMS 1.A market structure characterized by many sellers with each having some pricing power and product differentiation is best described as: A.oligopoly. B.perfect competition. C.monopolistic competition. ...
Similarly, if tastes had changed so that Swiss goods were now more favored by consumers, this would increase the relative price of Swiss goods and would be associated with a franc appreciation. In this view of the world exchange rate changes can never be viewed as good or bad; they simply...
Macroeconomics is a social science that studies an economy at the aggregate (or economy-wide) level. For the sake of simplicity, one can consider the discipline of macroeconomics as being composed of three interrelated components: the key attributes that characterize a macroeconomy; the key ...
8.The inventory/sales ratio is most likely to be rising: A.as a contraction unfolds. B.partially into a recovery. C.near the top of an economic cycle. SOLUTIONS: C is correct. Near the top of a cycle, sales begin to slow before production is cut, leading to an increase in inventorie...