The marginal tax rate is the number that the government sets for people to pay. The effective tax rate is the number that people actually pay for their taxes after deductions.
<span>Aggregate supply (as) denotes the relationship between the total quantity that firms choose to produce and sell and the price level of the output, holding the price of inputs fixed. </span>Aggregate supply is the total supply of services and goods that identifies the economy plan of a nation in a specific period of time.
Answer:
Learning curve theory states that as the quantity of a product produced increase , the man-hours per unit expended producing the product decrease.
Explanation:
The learning curve states that if a person performs similar task again and again, then after a period of time there will be an improvement in his/her performance.
It is calculated using following formula.
Y = ax^b
.
Y = cumulative average time per unit or batch.
a = time taken to produce initial quantity.
X = the cumulative units of production or, if in batches, the
cumulative number of batches.
b = the learning index or coefficient, which is calculated as:
log learning curve percentage ÷ log 2. So b for an
90 per cent curve would be log 0.9 ÷ log 2 = – 0.152
Answer:
2. raises interest rates, causing aggregate demand to shift to the right.
Explanation:
Expansionary Fiscal Policies try to increase Aggregate demand by :-
- Decrease in taxes by government ; or / and
- Increase in government spending
The government injecting more money in public : by reduced taxes & increased govt spending - increases the aggregate demand .
The government finances this increased public spending with same or decreased taxes - through borrowings.
The government borrowing funds reduces the loanable funds in capital market, this loans' excess demand in capital markets increase their price i.e Interest.