The Relationship between Education and Health

If you had to guess, would you say better education lead to better health or does better health lead to a better education? The answer isn't that simple. While people commonly understand that the more educated you are, the higher your income is likely to be, which is also likely to lead to better health. However, better health could help people…
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Perfect Competition in the Long Run

In the long run, we assume that all Factors of Production are variable, which means that the entrepreneur can adjust plant size or increase their output to achieve maximum profit. Perfect Competition Long Run equilibrium results in all firms receiving normal profits or zero economic profits.Perfect Competition Long Run Factor MobilityThe…
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Objectives of Central Banks

Central banks oversee the banking system in their country. They play an important role in managing a state's currency, money supply, and interest rates. There are five primary objectives of central banks. The Federal Reserve is the central bank of the United States.Objectives of Central Banks1. Inflation A central bank pursues a low…
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Cost-Push Inflation

A fall or left shift in Aggregate Supply is the cause of Cost-Push Inflation. This shift can occur from an increase in the cost of production or decrease in the volume of production. An increase in the Aggregate Demand curve causes Demand-Pull inflation. An interaction of cost-push inflation and demand-pull inflation results in the Wage Price…
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Demand Side Policies

Demand Side Policies are attempts to increase or decrease aggregate demand to affect output, employment, and inflation. Demand Side Policies can be classified into fiscal policy and monetary policy. In general, demand-side policies aim to change the aggregate demand in the economy. Aggregate Demand is made up of Consumer Spending + Government…
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