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Unemployment, while useful in some cases, is inherently flawed as a metric for socio-economic progress. Official unemployment statistics fail to take into account the issue of hidden unemployment, defined...
The law of demand states that: 'as a product's price falls, the quantity demanded of the product will rise, ceteris paribus'. In other words, price and quantity demanded of a good are inversely related. T...
Graph to accompany answer The economy is initially in equilibrium where LRAS = AD = SRAS. Real output is Yf and the average price level is P. If there is a decrease in government spending i...
A government can use a progressive tax system to redistribute income. The way this works is that as income rises, you pay a higher portion of that income in taxes. This is probably the most common way to ...
Negative externality of consumption is a type of market failure in which Marginal Private Benefit (MPB- the demand of consumers at present situation) is higher than Marginal Social Benefit (MSB- the deman...
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