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To what extent does expansionary fiscal policy help governments achieve macroeconomic objectives?

Expansionary fiscal policy refers to when the government seeks to stimulate economic growth by increasing government spending and decreasing the level of taxation. We would then expect a higher level of disp...
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Answered by Rebecca S. • Economics tutor
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What is the effect of an indirect tax on the cigarette market?

Cigarettes are considered a demerit good since its consumption has a negative impact on the consumer. The product then results in an external cost as it becomes a cost for a third party as a result of an eco...
Answered by • Economics tutor
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What are economies of scale?

Economies of scale are when increasing output leads to lower long-run average costs- meaning that when a business increases production, their average costs decrease There are several types of economy of scal...
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What would be the economic impacts of a decrease in the tax rate for all tax brackets? Use the idea of aggregate demand your answer.

Using the concept of aggregate demand as a formula of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X-M), we have the formula of AD= C + I + G + (X-M). An decrease in taxes for al...
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Answered by Daniel S. • Economics tutor
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Using Angola as an example, evaluate the view that MNCs play a positive role in the development of LEDCs. (25 marks)

Structure: Definition and IntroductionWhat is a Multi National Corporation? Define: Less Economically Developed Country --> characteristics (brief)First Point: Analysis, Application, Evaluation Investment...
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Answered by Nasya M. • Economics tutor
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