Supply and Demand
The result of the interaction between consumers and producers in a competitive market determines Supply and Demand equilibrium, price and quantity. Market forces tend to drop the price if the…
The result of the interaction between consumers and producers in a competitive market determines Supply and Demand equilibrium, price and quantity. Market forces tend to drop the price if the…
…long run, expectations are adjusted, and there is no trade-off between unemployment and inflation. The Natural Rate of Unemployment is compatible with any rate of inflation, as long as the…
…that lower tax rates mean businesses and consumers will spend more and boost the economy. Companies will invest and hire more workers and consumers will use the extra disposable income…
…Asymmetric Information The insurance company won’t have enough information on the farmer about things he could have done to minimize loss. This lack of information is called asymmetric information. Within…