All Questions
Tagged with macroeconomics supply-and-demand
60 questions
1
vote
1
answer
468
views
Under what circumstances is an increase in national output called economic growth?
An increase in output can be achieved in two basic ways.
The first scenario:
Aggregate demand increases, so supply extends. In this way the economy is making more use of its resources, but there is ...
- 245
3
votes
1
answer
1k
views
Deriving the supply curve
In deriving the supply curve how does one create the supply curve like the one we see in textbooks (upward sloping, possible curve), if we are only given a single quantity and price at a moment in ...
- 117
1
vote
1
answer
177
views
Concept of absolute advantage
Can someone please explain the concept of absolute advantage with an example? I know it has to do with the fact that a nation should produce a commodity that is cheap relative to other commodities but ...
- 233
1
vote
0
answers
86
views
how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth
how can devaluation of a nation's currency lead to increase in government expenditure, hence facilitating economic growth.
I was reading through a textbook and saw that the devaluation of a nation's ...
- 233
3
votes
2
answers
1k
views
When Does a Shift to the Right Happen in the Demand and Supply Curves Simultaneously?
If, for example, Health Canada issues a public statement that states eating pizza is good for your overall physical health, would this result in both a shift in the demand curve for pizza to the right,...
- 201
3
votes
2
answers
241
views
Does aggregate demand increase investments?
I just read that increase in aggregate demand increases investment for a given interest rate. How is it possible because when aggregate demand increases, this shifts the demand for money to the right ...
- 31
1
vote
1
answer
664
views
Shifts in demand curves
When plotting a demand curve for a good, lets say carrots with price on the y-axis and quantity demanded on the x-axis. A shift any determinant of demand other than price of carrots results in a shift ...
- 55
3
votes
0
answers
358
views
Supply-side economics: reduction in tax
In a nutshell
Supply-side economists support reductions in tax, because government revenue can increase (according to the Laffer curve) and businesses and consumers will be incentivised to invest (...
- 1,295
4
votes
2
answers
220
views
Re-evaluation of Consumer Price Index (C.P.I.) weights
How are the weights of the various household items in the Consumer Price Index (C.P.I.) basket decided, i.e., how are they re-evaluated every year? Is it done manually or automatically?
If its done ...
- 175
3
votes
1
answer
2k
views
Basic microeconomics: supply, demand and substitutes in production
The question is: explain the change in the market for skim milk, if demand for ice cream rises.
I'd say these two are unrelated in consumption (saying they're substitutes is kind of stretching it), ...
- 31