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We can determine weather the burden of a tax will fall on consumers or suppliers by looking at the price elastcity of demand. Although both groups will usually share the incidence of the tax, the group wi...
Quantitative Easing is the introduction of new money into the money supply and is performed by the central bank. There are several effects associated with quantitative easing, one such positive impact is ...
In this case, mpc is the Marginal Propensity to Consume, which is a value between 0 and 1 representing the proportion spent on consumption of an extra unit of income received by a consumer. It is used for...
The average revenue curve for a perfectly competitive firm is horizontal due to the fact that it faces perfectly elastic demand at the market determined price. This is because there is a significant amoun...
One policy the government could use is to put a tariff on imports. Tariff Diagram As the diagram shows, a tariff on imports would shift the world supply curve up to W+T and increase the price of ...
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