They eliminate monopolies and limit the price ceiling.
A tsunami is a sea wave usually generated by earthquake activity on the ocean floor. The earthquake has to be such that it displaces a massive amount of water thus triggering the wave. Tsunamis have more energy than a regular wave and so it will not break on the shore but can travel kilometers in land before doing so. Tsunamis will travel furthest on topography that is relatively flat or gently undulating like that of a coastal plain.
Answer:
The Troubled Asset Relief Program (TARP) was design by the government in order to purchase assets with low value that do not have functionality for the market anymore.
Explanation:
The Troubled Asset Relief Program (TARP) was design by the government in order to purchase assets with low value that do not have functionality for the market anymore. The program was designed to help overcome the recovery of the economic crisis that occurred between 2007 and 2010, in which previously the prices of real estate had dropped significantly. Reason why, investments in householding were reduced and subsequently also in business.
The purpose of the program also included the selling of these assets later on, to be able to recover all the investments during the economic recession. At the end of the program in 2014, there were some profits of $15.3 billion. The government initially made an investment of $426.4 billion and at the end of the program they were able to register $441.7 billion.
If real GDP falls from one period to another, we can conclude that:
<u>deflation occurred.</u>
Real GDP adjusts the level of output for any potential price adjustments that may have occurred over time; nominal GDP adjusts the level of output for changes in the price level using prices from a base year (constant prices) rather than the "current prices" used in nominal GDP.
The GDP deflator is a price index that tracks the average prices of all finished products and services produced inside a country's boundaries over time. It is used to adjust nominal GDP to determine real GDP.
So when the real GDP falls it can be concluded that deflation has occurred in the economy that is fall in prices .
To learn more about deflation click here :
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