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❶So we can say economics have helped in acquiring a way of thinking towards the production and distribution of the scared resources.

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Suppose we have an economy with 3 sectors, each with the following valuation of carbon sequestration: Labor Market Equilibrium 1. After researching the latest consumer confidence estimates, in addition to the latest unemployment and inflation estimates, do you estimate good or Suppose an earthquake destroys part of a nation's capital stock, but does not kill off any people.

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Precautionary motive require demand for money whenever there is some unexpected payment to be done. The value and demand of an asset heavily depend on its opportunity cost and the rate of return. Money is also an asset, but results in depreciation during inflation and will provide no rate of return no matter for how long its been saved or holding it.

The legislative branches of the government hold and implement the fiscal policy for every country. Government expenditures and the taxes are defined as the two main instruments of the fiscal policy because government needs to finance the expenditures that it undertakes to fulfill the demand of goods and services of people and to finance those expenditures it collects taxes from the people. The government can either be in deficit or surplus depending the number of people paying the taxes.

When the payments surpass the expenses, the government stays in budget surplus, but if the case is opposite, i. To fulfil or overcome that deficit in the budget, the governments borrow money or take loans from other nations or international financial institutions like the world bank and IMF thus increasing the national debt.

Governments taking loan from other nations for the fulfilment, expenses continuously increase the national debt and stays in the credit line because the money supply stays constant. With loans comes interest that shows an increasing trend thus resulting in increase debts. This situation eventually gives rise to aggregate demand and country has to deal with inflation that brings its own charms and result in making the situation even worse.

So keeping the national budget balanced a government needs a balance in income and expenses. When the banks need to borrow the reserves to meet their reserve requirements, the central bank charges the interest known as the discount rate. The flow of many depends heavily on the discount rate.

Banks will hold the money flow if the central bank sets the discount rate high on the other hand low interest rate will encourage the smooth flow of money and encourage the investments.

When the central bank is using its instruments of monetary policy to increase the supply of money, it is said to follow the expansionary monetary policy. To the contrary, if the central bank is reducing the supply of money using the instruments of monetary policy it is undergoing contraction monetary policy.

This theory provides the information that the quantity of money and the price level are directly proportional; i. Monetarists have criticized the expansionary monetary policy stating that it only encourages households to expand, thus increasing the aggregate demand and results in increase surplus.

According to the monetarists expansionary monetary policy serves better only in the short run while in the long run it results in inflation due to the destabilization in the price level.

They are of the believe that price the growth rate of the money supply and the real growth rate should be kept equal and without causing inflation or deflation the monetary policy should accommodate the increase in real GDP. Perfect competition needs five characteristics to be fulfilled to call any market perfectly competitive. These characteristics are, all the firms should be selling the same or identical products.

Have no control over setting the price. The market share is distributed among each other in small proportions. The buyers should have complete knowledge and information about the product and their prices. No entry and exit barriers. Unlike monopoly perfect competition serves better for the industry as well as for the buyers as well. Perfect competition provides consumers with many options in selecting the products since there are many sellers and sellers have the advantage in setting the price.

Also, consumers gain the bargaining power. Monopoly, unlike perfect competition, serves best for firms rather than consumers. The reasons a company enjoy monopoly are the entry barriers that discourage new firms to enter the market. Also, there are no substitutes of the products the firm is producing that allows companies to enjoy a monopoly. Factors like patents, limited access to resources and large start up cost discourages companies to enter the market.

Some markets where there are large economies of scale like electricity, gas, oil, etc. Because we are Number 1 in Economics Assignments Help. Privacy We keep things confidential at Economicskey. We offer unlimited number of revisions for all our new as well as returning customers.

Duration to revisions for all orders is 24 hours. On-Time Delivery We make sure that our customers receive their assignments on time. Economics Assignment Help Scarcity of resources in society to fabricate goods and services and then allocating the sacred goods and services to the society are the main highlight of economics.

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Economics Assignment Help. Economics focuses on the behaviour and interactions of economic representatives and how economies work. Microeconomics takes a look at the behaviour of fundamental components in the economy, consisting of specific representatives and markets, their interactions, and the results of interactions.

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