It follows that total budget deficit is $900 billion since the total budget deficit is the sum of the structural deficit and the cyclical deficit. A cyclical deficit exists because of the business cycle while there is a structural deficit when the government’s spending is more than it receives in taxes, regardless of the economic performance. Their total would be the budget deficit.
Answer:
One economic impact refugees can have on a receiving country is an increase strain on natural sources like water. Another reason would be that the receiving country would have more costly security risks.
Explanation:
Answer:
Money supply increases causing the interest rate to decrease. investment spending will increase and the AD curve will shift to the right. price level however does not change.
Explanation:
Because the AS curve is horizontal there is a liquidity trap. During a liquidity trap, monetary policy is MOST EFFECTIVE. When money supply increases it causes an excess of money in the economy causing a drop(decrease) in the interest rate. The subsequent drop in the interest rate causes people to increase investment, which causes investment spending to rise(increase). This increase in investment spending causing the Aggregate Demand(AD) curve to move right. The price level does not change because the AS curve is horizontal and pegged at a given price level. So no matter the Demand the supply will only be at that constant price.
<span>Countries with free market economies in which property rights are protected tend to have </span>greater economic growth rates <span>than command economies or economies where property rights are poorly protected.
</span><span>The reason is the lack of infrastructure and supporting business in primitive or undeveloped economies, which may lead to situation in which is more costly to do business. </span>
Answer:
The law of demand is an economic principle that states that consumer demand for a good rises when prices fall while conversely, consumer demand falls when prices rise. ... As a result, the price consumers are willing to pay for a good decline as their utility decreases.