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How does the economy self-correct and move from a short-run inflationary gap to a long-run equilibrium?
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Is the South African economy classified as a command or market economy?
yes, South Africa is a Pure market economy
What type of economy does Finland have?
mixed economy
What type of economy does togo have?
Togo has a market economy.
What is the economy of the northwest territories in Canada like?
the economy is 200,456
What kind of economy do most North Africa countries have?
they have a developing economy.
Define inflationary economy under US GAAP?
define an inflationary economy
Is the United States economy in an inflationary or recessionary gap?
Recessionary.
Equilibrium and economies scale in market economy?
Equilibrium and economies scale in market economy
What economy uses the equilibrium price?
a market economy
What does too much money in the economy lead to?
A high level of capital in the economy exerts and inflationary pressure. With this, prices can rise and the value of the money goes down.
How will the government policy of increasing federal state or local taxes could eventually lower inflation?
if inflation is increasing that means the economy is over producing and that the economy has an inflationary gap which means the equilibrium GDP(where total spending is equal to total production) is greater then potential GDP(full employment GDP). Increasing taxes will reduce the disposable income that consumer have which will then reduce consumer expenditure(which is one of the components of GDP or aggregate demand). This will lower the equilibrium GDP to be the same as potential GDP and will lower the equilibrium for the supply and demand graph for the entire economy to a lower price level reducing price levels. Reducing government spending or decreasing transfer payments will have the same affect on the economy.
What has the author Masahiro Okuno written?
Masahiro Okuno has written: 'On the efficiency of competitive equilibrium in infinite horizon economy and money' -- subject(s): Equilibrium (Economics) 'On the efficiency of competitive equilibrium in infinite horizon economy and money' -- subject(s): Equilibrium (Economics)
When the leakages and injections of the economy are balanced it is called what?
equilibrium
What monetary policy should be implemented to correct an inflationary economy?
a sale of bonds to decrease the money supply, increasing interest rates, these are recessionary measures used to slow down the economy.
What monetary policy should be implemented to correct inflationary economy?
a sale of bonds to decrease the money supply, increasing interest rates, these are recessionary measures used to slow down the economy.
If C is 100 Ig is 50 Xn is -10 and G is 30 what is the economy's equilibrium GDP?
If C is 100 Ig is 50 Xn is -10 and G is 30 what is the economy's equilibrium GDP?
After the fall of the economy in 1929, what did classical economists believe to be the solution to the Great Depression?
wait for the economy to achieve equilibrium
