Answers created by Jim Vernon

• Back to user's profile
• Why is there a deadweight loss from taxation?
  
• What causes stagflation?
  
• What is a fiscal cliff that a government can have occur?
  
• What is a Keynesian multiplier?
  
• Question #a0084
  
• Why is the crowding-out effect important?
  
• What is the process to convert the nominal GDP rate into a real GDP rate?
  
• How can the labor market equilibrium be affected by supply?
  
• Question #00ae9
  
• Question #03f83
  
• How does market size affect an individual or market demand curve?
  
• Within the Phillips curves, how does inflation affect unemployment and vice versa?
  
• Why is it possible that negative externalities lead to inefficient overproduction?
  
• Why is normal profit an opportunity cost?
  
• How does fractional reserve banking create money?
  
• How does absolute advantages change over time (if they do)?
  
• What are some examples of equity financing?
  
• Why would government involvement cause the crowding-out effect?
  
• What is actual employment output?
  
• When is optimal consumption achieved in a process?
  
• Is it possible that excess capacity or inefficiencies are a good thing in a monopoly? Why or why not?
  
• How does a monopoly market structure differ from perfect competition and an oligopoly?
  
• How does minimum wage effect market equilibrium?
  
• Can real interest rates be negative?
  
• What are some reasons one would want to apply the nominal value of a good or service in an economical analysis?
  
• How do price controls distort incentives?
  
• Question #4c506
  
• How is allocative efficiency achieved in pure competition?
  
• What is the Taylor Rule with respect to the equilibrium real interest rate?
  
• Why is economic growth so important?
  
• Explain how production possibilities curves show efficiency growth and cost?
  
• Question #07e6c
  
• Why is consumer surplus a measure of consumer welfare?
  
• Why specialization is important in the operation of a market?
  
• What are some examples of long-term costs?
  
• Are all forms of money in an economy tangible or not and why?
  
• As an example, what are the most common measurements of money supply used by the Federal Reserve?
  
• Question #2b113
  
• Why is it important to review the concept of deadweight losses when looking at consumer or product surpluses?
  
• Question #4a7b3
  
• How is the concept of the time value of money important to a company?
  
• Why does macroeconomics matter?
  
• How does elasticity affect price?
  
• What are reasons why income equality happens?
  
• What is considered a long-term production cost?
  
• Is it possible for a monopolistic firm incur losses in the short-term or longer-term when attempting to maximize profit? Why or why not?
  
• How does opportunity cost related to the problem of choice between alternatives?
  
• Question #8dde8
  
• How does a production possibility curve illustrates the trade off of supply and demand?
  
• How can equilibrium be unstable in an economy?
  
• How does the crowding out effect the economy?
  
• What is money?
  
• Why is inflation a good thing or bad thing in an economy?