Answer:
Advantages from specialisation (division) of labour:
Higher productivity and efficiency – e.g. rising output per person hour. Lower unit costs leading to higher profits. Encourages investment in specific capital – economies of scale.
Explanation:
Answer:
Before the establishment of the Federal Reserve System, the West was faced with financial crises. There were instances ok which there were a form of crises which led to fears and worries by bank customers. The people ran to their banks to withdraw their deposits. The failure of one bank often had a ripple effect in which customers of other banks rushed to withdraw funds from their own banks even if those banks were not involved in the crisis.
Banks needed a source of emergency reserves to prevent customer fears and banks being driven out of business.
This led to the set up of the Federal Reserve Act.
The Federal Reserve System was created to tackle these banking issues and also to make possible fostering a sound banking system and healthy economy.
Raw cotton crops doubled each decade after 1800 because farmers grew nothing else. The cotton gin sped production and the "de-seeding" of cotton so much that the economy improved so farmers stuck with cotton.
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<u>The correct order for the steps that show how contractionary fiscal policies work would be the following</u>:
-Government increases tax rate
-Inflationary pressure decreases
-Consumers have less money to spend
-Producers manufacture fewer goods
Contractionary monetary policy is often applied <u>when the economy is suffering from inflationary pressure</u>. The central bank (U.S. Federal Reserve) will <u>slow down the monetary supply</u>. In turn, this raises the cost of borrowed money, which <u>decreases Gross Domestic Product and inflation</u>. Some negative side effects could be a higher unemployment rate.
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