How does changes in the interest rate affect economic activity? What happens to the aggregate price level and aggregate output from an increase in imports? Why are imports subtracted from GDP? What happens when supply increases and demand decreases?
In economics, “supply” means how much of a good producers are willing to supply.Goods are supplied by businesses.Businesses—if they’re competitive—they don’t supply goods for fun.They supply goods for profit.They’ll supply more of a good when the price is high because it’s more ...
Why does the marginal propensity to consume decline when there is an increase in income? Why is marginal revenue not equal to price? Why is the marginal revenue curve for a monopolist downward sloping? Why marginal cost increases or decreases with increase or decrease in prod...
Some experts suppose that when a country is already rich, any additional increase in economic wealth does not make its citizens happier. To what extent do you agree or disagree? Give reasons for your answer and include any relevant examples from your own knowledge or experience. Write at least...
When private sector spending decreases, the government can spend more or tax less in order to directly increase aggregate demand. When the private sector is overly optimistic and spends too much, too quickly on consumption and new investment projects, the government can spend less or tax more in...
The scarcity of dollars is one reason for the increase in purchasing power, and another is due to sellers dropping the price of goods to entice consumers to spend money. Thus, the quantity of dollars decreases when interest rates rise, but the amount of goods and services a dollar can ...
Inflation is the rate at which the price of goods and services increases. As a result of inflation, the purchasing power (value) of money decreases over time. Inflation affects the prices of everything around us. Generally speaking, inflation can be caused by a number of factors. The recent...
Milk does not cause or increase the risk or size of kidney stones. Most kidney stones consist of calcium-oxalate, which is why many people think the calcium in milk might make them larger. But there’s calcium in your bloodstream all the time, and it doesn’t have anything to do with ...
Over 1997–2011 the largest monthly increase in real oil price occurs in March 2009. The largest increase in global real M2 occurs in December 2008. The large increases in global real M2 at the end of 2008 are in response to the GFC and follow a series of small increases and decreases ...
What happens to a company when its stock goes to zero? What does an increase in retained earnings mean? Why is an expense considered an asset? It increases when debited and decreases when credited? Does a stock split change any balance in the ledger? If not, why would a corporation execut...