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Models based on supply and demand little insight into real-world interest rate determination. The most important factor (but not only) in determining the yield of bond that is free of default risk is rate expectations: what is the expected cost of financing the bond at the short rate over the lifetime of the bond? Once that factor is accounted for, we can ...


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It can be considered subsidy, especially if you are asking for the quoted passage. Although looking at it directly the subsidy seems to de jure be on the consumption (this being said some or maybe even most of the benefit will be most likely captured by carmakers through the economic incidence of the subsidy). For example, following Mankiw and Taylor, ...


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Demand schedule is a table that gives you the quantity demanded at different prices. An example of demand schedule that I found on Wikipedia is shown below: Demand curve is a curve that plots the demand at different prices in the 2D space defined by $Q$ and $P$ (see example picture I took from investopedia below). Demand curve is essentially a plot of ...


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Let's distinguish exogeneous from endogenous factors, distinguish partial versus general equilibrium analysis, consider here the labor market of one product, i.e., a partial analysis, consider that this labor market is perfectly competitive. In your reasoning, the decrease in labor supply, which typically leads to an increase in the wage rate, would come ...


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This question is too open-ended, as it does not even specify a country. There are a number of issues that have shown up. These comments are based on my reading of news stories, and arguably not authoritative. Logistics have been disrupted, putting shipping, planting, and harvesting at risk. This is a worry for countries that are dependent upon food imports....


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Demand side effects: Effects to the economy whenever the demand-side factors (the components of GDP [in the abstracts case, Government spending]) either increases or decreases. Demand AD (GDP) = C + I + G +X-M https://www.economicshelp.org/blog/2671/economics/factors-affecting-economic-growth/


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As for the first one : if the demand rises, it moves to the right on the plane , so the new price will be higher because the supply curve remains (almost) the same. The demand will be higher because the utility function of a beach hotel will be higher for all people during summer months. (The second one is similar. Can you come up with an explanation ...


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