Aggregate supply

scheduling of every operational aspect of the company. The main focus of competitiveness is the reduction in overhead, which will allow Railex to offer a more competitive pricing structure to its customers, or increase their overall profit margin. Supply-chain management will also increase through the use of better processes which will help Railex remain competitive with their just-in-time style of order processing and ability to fine tune cross country shipping and the highest use of their…

ask how participation in the free-market both supports and corrodes our sense of morality. Capitalism, as an economic system, cannot be inherently moral or immoral. A free-market economy is amoral. The free-market exists as a means to balance the supply and demand of resources in the most efficient way possible. Capitalism, the least restrictive system of trade used…

police are two of the most powerful tools that impact a nation’s economic activity (Investopedia 1). Fiscal policy is defined as the government spending and taxation that influences the economy. Central banks use monetary policy to change the money supply and either stimulate faster growth of an economy, or slow it down due to risks such as inflation. Both policies have their share of similarities and differences, and are vital in the United States economy. It is still questioned which policy…

The commonly perceived operation of a bank is fairly simply; a bank received deposits and holds them in trust The bank lends out the funds to generate income - the loanable funds model.. While this perceived intermediary role of a bank is fairly typical, it in fact does not illustrate the process and method by which banks hold deposited funds. The actual method is called Fractional reserve banking [FRB], in which banks are required to keep a fraction of the total reserves (deposits) held,…

especially during recessions, when the economic output is strongly influenced by aggregate demands. Friedman was more focused on the long term effects and helping the citizens of the country as much as possible. Friedman was for monetarism, stressing its importance to keep the economy going. Monetarism is the concept that the government should control the amount of money in circulation, creating a steady flow of the money supply, helping the national output of goods and…

Total utility: It is the aggregate level of satisfaction or utility that a person derives from consuming a particular good or service. Each additional unit has its own marginal utility. The total utility is nothing but the sum of all marginal utilities. Marginal utility: it is satisfaction…

If the compensated elasticity of supply of labor is zero, then a tax on labor earnings will have zero excess burden. 16. Lump-sum taxes do not prevent prices from equaling the marginal social cost and benefit of any goods and services. 17. Lump-sum taxes can vary in amount based on income level. 18. A lump-sum tax can distort prices and affect consumption behavior. Multiple Choice Questions 1. A lump-sum tax: a. distorts market prices so that they do not simultaneously equal…

1. Approximately what percent of the global population lives in areas where either incident human water security or biodiversity threat exceeds the 75th percentile? (p. 556) a. Nearly 80% of the world’s population lives in areas where either indecent human water security or biodiversity threat exceeds the 75th percentile. 2. Fig. 2 shows how biodiversity threats along a river (i.e. from headwaters to ocean) can vary depending on where the human population and its resultant impacts lie. For…

4 as the vast majority of people are ruled by self interest. The reason it is problematic, unlike the greed of a common worker is that the wealthy derive the vast majority of their income from profits, which naturally decline as competition on the supply side of the market and wages of labor increase, which, in turn, inevitably happen as societies increase their wealth (Smith 1976:278). Therefore, there is a contradiction between the interest of the rich and that of the society as a whole, which…

yields of government bond can spill over into lower corporate bond yields and weaker exchange rates (Neely, 2012; Glick and Leduc, 2012 etc.). On the other hand, the transmission of a lower borrowing cost to an increase in investments, and thus aggregate demand growth. For example, during periods of uncertainty and low confidence, firms can be reluctant to invest and individuals can be declined to spend. A number of empirical evidences have supported the macroeconomic effects of QE despite the…