How can absolute poverty be eliminated? How can relative poverty be eliminated? Does the elimination of one lead to the elimination of the other? Explain
What will be an ideal response?
Absolute poverty can be eliminated by economic growth that lifts all families above the poverty level. Relative poverty can be eliminated by a perfectly equal distribution of income. Eliminating one does not eliminate the other. If incomes rise so that no one is below the poverty level, but higher incomes rise faster, relative poverty may increase. If everyone earns a subsistence income, there is no relative poverty but everyone experiences absolute poverty.
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Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?
A. Moderate fiscal stimulus, no monetary stimulus B. Fiscal and monetary tightness C. Moderate monetary stimulus, fiscal tightness D. Strong fiscal and monetary stimulus
The period of expansion ends with a ________ and the period of recession ends with a ________
A) business cycle peak; business cycle peak B) business cycle trough; business cycle trough C) business cycle peak; business cycle trough D) business cycle trough; business cycle peak
Show the effects of a permanent increase in the money supply
What will be an ideal response?
How does the monopolist calculate profit per unit, and total profit?