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Foreign Aid

…a school or a hospital, it is considered to be Project Aid. 5. Military Aid Military aid is never charitable. The U.S. gave about $15 billion in Military Aid in…

…services. Stagflation is commonly triggered by sharp increases in commodity prices. What Causes Stagflation? Stagflation has a number of potential causes, including: Government expansion of the money supply: When, for…

Harrod Domar Model

…therefore increasing growth. The capital-output ratio shows how much capital is needed to produce a dollar’s worth of output. It reflects the efficiency of using machines. This efficiency means that…

Indirect Tax

…a sales tax of 10%. For example, cities in California have a sales tax that ranges from 7.25% to 10.50%. Indirect taxes discourage the consumption of goods and services and…

Direct Finance

…less than 5% are sold directly to Households. Direct household participation in the bond market has fallen to 1.3% in 2016, from a low of 5% in 1989, according to…

Supply and Demand

…Q* is the equilibrium quantity Why is the Equilibrium Specifically at Price P* and Quantity Q*? At a higher price, there would be more quantity supplied than demanded so the…

Laffer Curve

…have ‘fun,’ so the effect is uncertain. Economists do not agree on where point C lies. Many politicians use the concept behind the Laffer Curve to justify tax cuts –…