Economics p3 post ur doubts here..:)

[AlphaBeta]

ah these jokers purposely say govt takes no action

CIE
and automatic stabilizers

 

[Bachelor]

View attachment 44747
just because of a quota, why would a firm close down?

possible is that k the only markt ws europeon union so due to decrease in demand they will close the factory and will go smwhre else

 

[Bachelor]

View attachment 44779
D how?

electrnic skills r now no longer required

 

[mmmmmm]

http://papers.xtremepapers.com/CIE/... AS Level/Economics (9708)/9708_w12_qp_31.pdf , q:2

 

[Rishabh195]

doubt in ques 4, 6, 7, 14, 21, 26, 28, 29, 30

 

[Speed_Freak]

doubt in ques 4, 6, 7, 14, 21, 26, 28, 29, 30

i'm doing that right now

 

[unique111]

electrnic skills r now no longer required

Why cant it be frictional(cyclical unemployment).?Ther is a reduction in demand..

 

[Speed_Freak]

Why cant it be frictional(cyclical unemployment).?Ther is a reduction in demand..

structural unemployment is to do with unemployment in a certain industry for technological reasons mostly. frictional deal with individuals and cyclical is a whole economy

 

[David Hussey]

 

[angel404]

View attachment 44800

the economy needs 3m to reach full employment...with a deflationary gap of 3m investment only needs to rise by 1m to close deflationary gap and hence the gap between full employment and actual output...hence multiplier is 3...since its a closed economy,multiplier is 1/MPS ,so MPS is 1/3...therefore MPC is 2/3,A

 

[David Hussey]

the economy needs 3m to reach full employment...with a deflationary gap of 1m,govt only needs to spend 1m to close deflationary gap and hence the gap between full employment and actual output...hence multiplier is 3...since its a closed economy,multiplier is 1/MPS ,so MPS is 1/3...therefore MPC is 2/3,A

can u show this in a diagram?

 

[AlphaBeta]

can u show this in a diagram?

Formula
Deflationary gap = Difference in employment level x MPS
so substitute and find MPS
and then minus 1 to get MPC

 

[angel404]

on it

 

[David Hussey]

 

[David Hussey]

 

[David Hussey]

 

[AlphaBeta]

View attachment 44807

See properly the first line and the last line of the table, they hav doubled the inputs and output doubled ,so constant returns,

 

[David Hussey]

Formula
Deflationary gap = Difference in employment level x MPS
so substitute and find MPS
and then minus 1 to get MPC

whats the formula for an inflationary gap then?

 

[angel404]

View attachment 44808

import substitution is the practice by certain countries of encouraging its citizens to substitute imports for local goods....or it means a govt trying to persuade its people to buy local goods instead of foreign goods.

 

[AlphaBeta]

whats the formula for an inflationary gap then?

same concept
But y should they ask for inflationary gap in these type of question ?
I never came across any question with inflationary gaps
did U ?