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    Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it?

    As debt increases, interest payments also rise, so that the deficit grows even if we keep other government spending constant.

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Questions & Answers

meaning nature and scope of macroeconomics
Diksha Reply
meaning of macroeconomics
Diksha
meaning of macroeconomics
Diksha
meaning of macroeconomics
Diksha
Macroeconomics covers aggregate or in simple words overall economy of country or world while microeconomics was just concerned with individual economies
Hamza
Hope this helped you, you can search it more on Google there is a YouTube page by the name of jacob Clifford
Hamza
How aggregate demand and output gap are related explain in the light of keynesian cross diagram
Muhammad Reply
what are the jobs of an economist
Shadrach Reply
study and predict economic indicators. give a economic base for polictical decision
mike
using the aggregate supply - aggregate demand model , explain how out and prices are determined , will out vary or stay fix in long run ?
SHAKEEL Reply
can you explain please
Tadesse
explain me too
Frank
The long-run aggregate supply curve is a vertical line at the potential level of output. The intersection of the economy’s aggregate demand and long-run aggregate supply curves determines its equilibrium real GDP and price level in the long run. Am I correct?
Tadesse
so it will out vary
Tadesse
no one corrects me
Tadesse
yes no-one corrects you.
Frank
but I'm here to listen your answer
Frank
aggregate supply is total of all industry supply.
Frank
In the long-run, the aggregate supply is graphed vertically on the supply curve. The equation used to determine the long-run aggregate supply is: Y = Y*. In the equation, Y is the production of the economy and Y* is the natural level of production of the economy.
Frank
yes you're correct Mr. Tedessa
Frank
What's a slope?
Tatiana Reply
change
Frank
rate of change,
Frank
😀😀 always happy. ....
Manjeck
interaction of demand and supply
Raka Reply
not know
Narayandutt
aggregate demand ko aur kin namo se Jana jata hai
Narayandutt Reply
aggregate demand ko kin namo se Jana jata
Narayandutt
Discuss briefly, the circular flow of income in a two-sector economy.
Kweku Reply
WHY DEVELOP COUNTRIES RELY ON DEVELOPED COUNTRIES?
Ben Reply
that is choice and want....
DJ
what is the determination of aggregate demand?
Maddy Reply
C+I consumption + investment
Rohit
AD= C+I+G+(X-M)
Rana
classical dichotomy and its components?
Romaisa Reply
what will happen to the demand curve when there is an inflation in an economy
Hamza Reply
From my view, I think the demand curve will shift inwards.
Bobo
now it depends on what kind of inflation it is, depending on the type of inflation the movement of the demand curve can be stated.
Munimu
yes it depends on the cause for inflation. if it caused by maybe an increase in money supply, the effect is neutral in the long term, therefore there are no effects on total output in the economy, except for an increase in price
Lucas
but short term in general i think you could expect the demand curve to shift inwards as consumers experience a decrease in real income
Lucas
source of capital for the sole trader
Dogbey Reply
borrowing from relatives, government grants, bank loans, personal savings, credit card etc.
Munimu
Suppose you are holding 2000 in a checking account and the price level decrease by 20 %how much it will affect your purchasing power and why
Iqra Reply
Hi Iqra, will answer your question soon.
Aleem
2000*0.2= 400 2000-400= 1600
Munimu
1600
Munimu
a price level decrease is deflation. it means you'll be able to afford to buy more with your 2000 and your real income becomes 2000÷(100-20)=2500
Lucas
the amount will decrease to 1600 and you can't be able to buy over this amount
Agogo
As an economist student discuss how the pandemic covid19 can affect the aggregate demand and aggregate supply thereby leading to decrease in GDP and standard of living of citizens of nigeria
Fadila Reply
pandemic covid19 has already resulted to recession among nations. Recession on the other hand, refers to a fall in aggregate demand due to low income, no or little savings, low productivity among firms, layoffs of workers and so on. currently, international trade is on the hold which has drastically
Okeoghene
affected the GDP and GNP of countries. This to a large extent has affected the purchasing power of consumers
Okeoghene
Hence the standard of living is questionable among nations especially among developing nations
Okeoghene

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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