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Which is not an element of deflation?
the supply of goods and services leads to lower prices
How best to manage economic down turn?
Your question is a big one. Economic downturn is when the economy's demand is low, which leads to the relatively inactive economy. To manage this, the government will try to stimulate the economy directly (by increase government spending) or indirectly (through tax, regulations, policies) so the demand raise.
Which condition leads to an increase in supply?
an increase in the cost of raw materials
How can government budget deficit cause the level of interest rates to rise for an economy?
When price increases, interest rate tends to rise. Government budget deficit suggests high Government spending (G) which leads to the rightward shift of AD and hence the corresponding upward pressure on price. Interest rate is determined by the money demand and money supply, government budget deficit suggests that government is unable to tap into reserves to finance spending. They will have to borrow. This increases the demand for money and thus causing the interest rate to rise.
How to overcome the budget deficit?
Cut personal taxes - this increases consumer spending - this leads to growth - this leads to increased GDP - this leads to increased business/corporation taxation income- this pays the budget deficit.
What is themultiplier effect?
The multiplier effect refers to the phenomenon where an initial injection of spending into the economy leads to a larger increase in overall economic activity. This occurs as the initial spending stimulates additional rounds of spending as income generated from the initial spending is re-spent by others. The multiplier effect helps magnify the impact of government spending or investment on the economy.
Which is not an element of deflation?
the supply of goods and services leads to lower prices
What was the purpose of the Tableau économique?
It showed the way spending in one area leads to spending in another.
How best to manage economic down turn?
Your question is a big one. Economic downturn is when the economy's demand is low, which leads to the relatively inactive economy. To manage this, the government will try to stimulate the economy directly (by increase government spending) or indirectly (through tax, regulations, policies) so the demand raise.
What is the main idea of the multiplier effect?
The main idea of the multiplier effect is that an initial increase in spending or investment leads to further economic activity and growth. This occurs as the money circulates through the economy, creating a ripple effect as it is spent and respent by individuals and businesses.
What was the purpose of the Tableau?
It showed the way spending in one area leads to spending in another.
Who leads a democracy government?
Prime Minister leads a Democracy Government.
What describes the entropy change of gas reaction?
if there is an increase in the number of gas molecules , then ^S > 0
How do you increase the length of leads of a capacitor?
You increase the length of leads of a capacitor by splicing extra length onto them.
Which countries leads the world in research and development spending?
United states
What leads to the increase in humidity level in Mumbai?
pollution and global warming leads to increase in humidity level in mumbai
What are the disadvantages of pork barrel?
In politics, the biggest disadvantage is that it leads to bargaining for projects to be done and leads to wasteful and irresponsible spending.
