So, if the employee consider that the tax refund is permanent (i.e. will not be adjusted upwards at some point in the future) he will consider he has a greater disposable current income (represented by an outward shift in the budget constraint from ω to ω’). In the other case, the employee will use the tax refund for savings (a shift from ω to ...
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(Econ Assignment Example | Topics and Well Written Essays - 750 Words - 1)
“Econ Assignment Example | Topics and Well Written Essays - 750 Words - 1”, n.d. https://studentshare.net/miscellaneous/540726-econ.
The ability to maximize one’s profit is key. One theory is that this success might have to do with the fact that, according to Png and Lehman (2007), “[t]he profit-maximizing scale of operation is where marginal revenue equals marginal cost” (pp. 203).
A rise in exchange rate also happens when demand grows slower as there is little importation happening. When investors are offered higher rates, these countries will attract more capital (Baumol and Blinder 758). There is also another type of exchange rate system also known as the fixed exchange rate which is run according to the fixed rules set by the government.
It mainly occurs when there is an extensive increase in the supply of the money within the economy which is not balanced with the growth of Gross Domestic Product (GDP) of a particular economy. As a result, there occurs an imbalance in the supply and demand, relative to the revenue of the country.
Econ reading and short essay questions Student Name: Tutor Name: Course: Date: . 1.) Answer Questions for Review #1 near the top of page 641 Money is combination of assets that used as a medium of exchange in an economy while commodity money is the value that an item has even if it has not been utilized as money for example; a gold (Mankiw, 2011).
Here, in this case, autonomous consumption expenditures, autonomous investment totals, autonomous government expenditures and autonomous net export expenditures amounted to 5000, 500, 2000 and -600 respectively. Therefore, the equilibrium value of real income in this economy will be [5000+500+2000+(-600)] = 6900.
The stock market of American S&P 500 given in the graph below, predicts recession since the prices of stocks were stable and steadly growing until 2002-2003 and also in the year 2008-2009. These years were characterized by
The ‘labor theory of value’ states that the value of a service or good depends on the labor used in its production. The first proposer of this theory was Adam Smith. This theory suggests that goods should cost the same as the amount of time used to produce
Frictional unemployment is a form of unemployment that occurs due to the voluntary job search by the employees for better opportunities. Frictional unemployment occurs as the jobseekers tend to look out for the
Inflation: for both January and March, FOMC’s reported inflation to have fallen further below the committee’s longer-run objective. Even though it appears that there is no difference in the January and March views, one can conclude that the
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