Jaisul Naik

Contractionary fiscal policy can be used to reduce inflation. Inflation is when there is a rise in average price level. Contractionary fiscal policy involves reducing government spending or increasing tax rates. AD = C

* what is the difference between macro and micro? * the diagrams for macroeconomics * AD = C + I + G + (X-M) * C: consumer confidence, interest rates, disposable incomes * I: interest rates, business confidence * G: state of the

Perfect competition is a market structure where there are many buyers and selllers. There are no barriers to entry, perfect information, and no product differentiation. The diagram shows the outcome in the short

Monopolistic Competition A market structure has monopolistic competition if there are low barriers to entry and there is slight product differentiation. In the short run, the firm acts like a monopoly. The outcome