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what are the shortcomings of cyclical fiscal policy?
if it is an expansionary fiscal policy businesses whose value is derived from the sales of the inferior products will be adversely affected. the demand for inferior products become waned since consumers will hold more money to spend on goods and services of ostentatious appeal. also increased government spending through subsidies and reduced taxes enventually encourage investments. it may result in full employment . labour resource may become scarce as a result. this implies that the economy cannot possibly increase its GDP owing to the fact that there is no spare capacity. thus the economy cannot readily spur on productivity in wake of such cyclical fiscal policy. moreso there will be demand pressures over resources e.g labour and capital. the worst economic evil of inflation is inclined to get into way because wage rates and interest rates are likely to go up due to the demand pressures over them.
what are the references for how capitalism affects economic system
I was wondering how will the Keynesian multiplier affect output when investment is increased?
what causes deflationary gap?
If there is a decrease in labor productivity how does this affect the AD-AS model? I am unsure if demand would change but assume supply would decrease since productivity is decreasing. Demand should stay constant as well?
how does supply create it own demand?please help me understand.
This is related to Say’s Law. https://www.economicshelp.org/blog/glossary/says-law/
What are the reasons why there is such a difference between the unemployed genders in South Africa?
To what extent can devalution help to solve balance of payment problem?
https://www.economicshelp.org/blog/6991/economics/does-a-devaluation-really-help-the-economy/
can a monopoly or a monopolistic market make a loss in short run and what about long run plzz explain with the help of a diagram
define
a(1)economic growth
(2] economic development
https://www.economicshelp.org/blog/1187/development/economic-growth-and-development/
What is quantitative tightening and what are its implications for the Fed and BoE’s decisions on when to raise interest rates?
Where can I find nominal effective real exchange rate (NEER) from world bank data. I found real effective real exchange rate (REER) http://data.worldbank.org/indicator/PX.REX.REER
they divid by price deflator to change it from NEER to REER. What is the price deflator that they divided by?
What is scarcity? and Why it use in economic?
this site is great and has the facilities or answers to which i would need for the required question i may want to of . I have a question ,what is meant by – all balance of payments always balances .
what is meant by balance of payments always balances ?
It means current account = financial + capital acccount
e.g. deficit on current account needs equivalent surplus on financial https://www.economicshelp.org/macroeconomics/bop/