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A profit maximising equilibria is one in which the firm maximises overall profit over all other potential outcomes. The point at which the firm is maximising profit is where marginal revenue intersects ma...
The government could increase the size of its working population through supply side policies such as spending on education and training. If more people are educated and trained, then there will be a redu...
One possible effect of this change in interest rate is a decrease in aggregate demand. As interest rates are inversely linked to investment, a component of aggregate demand responsible for approximately 1...
The average revenue is the demand curve, revenue is calculated by q*p, so (a+q)q = aq-q^2, the marginal revenue is the rate of change in the revenue so if we differentiate wrt q, we get a-2q, which illust...
Introduction - definitions of monetary policy, fiscal policy, and unemployment.
Monetary policy is expansionary - rate of interest decreased, value of savings decreased, spending increased, borrow...
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