What action does the government take to stabilize the economy in high unemployment? In Keynesian stabilization policy, demand is stimulated to counter high levels of unemployment and it is suppressed to counter rising inflation. The two main tools in use today to increase or decrease demand are to lower or raise interest rates for borrowing […]
Which of the following might cause the demand for an inferior good to decrease?
Which of the following might cause the demand for an inferior good to decrease? In economics, the demand for inferior goods decreases as income increases or the economy improves. When this happens, consumers will be more willing to spend on more costly substitutes. Some of the reasons behind this shift may include quality or a […]
What increases short-run aggregate supply?
What increases short-run aggregate supply? In the short-run, examples of events that shift the aggregate supply curve to the right include a decrease in wages, an increase in physical capital stock, or advancement of technology. The short-run curve shifts to the right the price level decreases and the GDP increases. Which of the following would […]
What is an agreement between two parties called?
What is an agreement between two parties called? Updated November 2, 2020: A legal business contract between two parties is a promise made by one party to another. A contract is often called an agreement. Each party in the agreement expects the other to keep their promise in the contract. What is an agreement called? […]
What are the 5 economic goals quizlet?
What are the 5 economic goals quizlet? Explain each of the five main economic goals: growth, efficiency, equity, security, freedom. Explain the economic goal of sustainability. Growth: an increase in the amount of goods and services produced per head of the population. What are the 3 major economic goals? Goals. In thinking about the overall […]
What are the economic importance of coastal plains?
What are the economic importance of coastal plains? The coastal regions of India are noted for agriculture, trade, industrial centres, tourist centres, fishing and salt making. They provide important hinterlands for big ports. These ports are inevitable for the economic growth of the nation. They are the centres of national and international trade. What is […]