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Inflation is a sustained increase in the general price level leading to a fall in the purchasing power or value of money. The rate of inflation is measured by the annual percentage increase in the level o...
When interest rates decrease, this decreases the cost of borrowing and reduces the reward for saving. As a result, there is a higher incentive for firms and individuals to borrow/spend and a lower incenti...
1 - Definitions: Products of such industries are de-merit goods with negative externalities in production and as such MSC > MPC of production, so products are over produced under the free market...
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...
A rise in government expenditure shifts the aggregate demand to the right (Insert graph). We assume that there is no change to the aggregate supply and that this is a one time increase. In the short-run b...
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