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Hello Tejvan,
I am a private user not affiliated with a college, organisation or website.
Could you be kind enough to clarify something for me please?
For the link below, for the top graph, you describe trend and the business cycle as
rates. Are you referring to their slopes at a particular point in time? The way I see it,
to describe a curve or line as a rate, it would mean the y axis being described as
GDP growth rate and we would read off the rate using this axis for any point in
time?
https://www.economicshelp.org/blog/5105/economics/long-run-trend-rate-of-growth/
Another question I have is as follows. I have read in a textbook that the long run
aggregate supply is described as a trend growth rate, but my understanding is that
long run aggregate supply is a stock concept and trend growth rate is a flow
concept. I would be grateful for clarification.
Lastly, I have read the following:
“The AD curve is downward sloping. This is not because ‘people buy more things
when they are cheaper’ (the most common misunderstanding about the AD curve )”.
I don’t understand this as I thought that the quantity /price relationship for demand is
inverse.
Thanks.
Kashif
What is your opinion of the concept of sectoral balances? If the economy is divided into Government Sector, Private Domestic Sector, and Rest of World Sector then
SGS + SPDS + SROW = 0
where SGS = Surpus of Govt Sector etc
One interesting result is that:
Government Deficit = Savings (Surplus) of PDS + External Deficit.
From this it follows that any attempt to reduce the Government Deficit by cutting spending and increasing taxation will be largely self defeating. The only way to achieve a reduction is to reduce PS savings and reduce imports.
Suppose that the consumption function is as follows: C = 0.5Y + 400 and income is $1000.
Calculate MPC
I just need the way because usually I would have more given
Why invest capita in purely competitive industries with equilibrium margins that are razor thin and entrants that erode quasi profits? Suppose volume is not exceptionally large, why then?
Which of the following tax has announcement effect?
a.income tax
b.property tax
c.excise duties
d.capital gains taxation