Answers created by sinclairm5

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• How does the money supply affect an economy when applying policies made by the Federal Reserve?
  
• What is the purpose of an expansionary fiscal policy?
  
• How do stocks and other investments affect the economy?
  
• What are some reasons cost-push inflation would increase or decrease?
  
• What are reasons to tighten monetary policy when supply-side effects have a high weight in an economy?
  
• How does a price level affect aggregate demand?
  
• How does a price level affect aggregate supply?
  
• How does an increase in aggregate supply affect output and inflation?
  
• How does a decrease in aggregate supply affect output and inflation?
  
• Why would economies of scale be a barrier to entry?
  
• How do government budget deficits lead to inflation?
  
• How can budget surpluses lead to deflation?
  
• How is perfect competition and monopoly similar or difference from each other?
  
• What are some examples of trade organizations?
  
• How can economics shape a culture?
  
• What is allocative efficiency?