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What are Income and Substitution Effects? Income effects reflects the increases or decreases in total consumption of goods and services in proporti...

What are Consumer Surplus, Producer Surplus, and Allocative Efficiency? Consumer surplus is a measurement of the extra consumer benefits and satisf...

What are Determinants of Economic Growth? The primary determinants of a country’s economic growth are the goods and services that comprise the Gr...

What are Determinants of Supply and Demand? Supply and demand determinants are factors that influence their amount and degree.. These supply factor...

What are Distributional Effects? Distributional effects is a term describing the various kinds of impact a policy, project, or initiative may have...

What are Gains From Trade? Gains from Trade is the term used to describe the benefits derived from two parties engaging in trade. The gains include...

What are Government Purchases of Goods and Services? Government purchases of goods and services encompasses federal, state, and local government pu...

What are Intermediate Goods? Intermediate goods are products used to make final goods, such as raw and alloy materials, commodities, and components...

What are Marginal Product and Diminishing Returns? Marginal product measures how much more can be made if one more person is hired; i.e. what is th...

What are National Savings? National savings is a US Commerce Dept. estimate, based on voluminous data, as to the rate of savings among companies, g...

What are Planning Horizon and Infinite Horizon? Planning horizon refers to the projected timespan that a company’s future plan will take to be im...

What are Producers’ Durable Equipment and Structures? Durable equipment and structures include products used that last a long time. So, in the ca...

What are Production Functions? In economics, production functions are calculations of maximum output from a variety of given inputs. These producti...

What are Rational Expectations? Rational Expectations is a theory that people’s past economic experiences influence their perception of the futur...

What are Real Interest Rates and Inflation Correction? Real interest rates are interest rates that have accounted for inflation, so they shouldn’...

What are the Neutrality and Superneutrality of Money? Codified as a term by economist Friedrich Hayek (author of, The Road to Serfdom), the Neutral...

What is a Production Possibilities Curve? The Production Possibilities Frontier Curve (PPF) is a statistical graphic curve that depicts the compari...

How Do Companies Add Value? Companies add value by improving the client or customer experience. This can be achieved by offering better quality ser...

What are Aggregate Consistency Conditions? Aggregate consistency conditions are parameters under which a macroeconomic and microeconomic aggregate...

What are Consumer Nondurables and Services? Consumer non durables are goods with a short lifespan of under 3 years. This can be anything from consu...