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Cannabis is a demerit good, which is defined as goods that are socially undesirable and have negative externalities; therefore the MPB of consumption is greater than the MSB. In a free ma...

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...