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Is all of economics reducible to supply and demand?
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I understand the supply side pretty well, but it is the demand side I struggle with. If the supply of money increases, you will get a dollar worth less and thus higher prices, as well as all of the negative effects of inflation (the business cycle, etc). But why would a decrease in the demand for money...
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Or even to ordinally measure if demand for money is increasing or decreasing? Prices are effected both by the supply and demand of money. The supply of money can be measured. But how is one to gauge the demand of money? For if the demand for money rises as the supply of money rises, prices would not...
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So I'm taking Intro to Micro for my undergradute degree in economics. Of course the entire class is from the neoclassical perspective (which, at least, isn't the Keynesian one). I asked the teacher for some "clarification" on "perfect competition" (I didn't need clarification...
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ABCT holds that business cycles are caused by an increase in the supply of money. I understand the supply part of ABCT pretty well, but I do not understand how demand factors in. For example, wouldn't the decrease in the demand for money also cause business cycles? Why such a decrease not result...
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Working through 'Lessons for the Young economist' at the moment, but having some difficulty with the concept of supply schedules for individuals. It seems to me that the definitions i've seen (both in LFTYE and online) are ambiguous, and I'd like to clear that up. In LFTYE Supply is definined...
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Their subsidization of solar panel production is, believe it or not, has little or no impact on the pace of solar energy research and development. If they subsidized the production of cell phones, new faster, smaller, more reliable cell phones would still be coming out every year. The only difference...
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Thorstein Veblen coined the term "conspicuous consumption" to refer to how certain affluent members of society will value certain goods solely because their supply is low and their price is high, which seems to violate the normal laws of supply and demand. For instance, a group of showy millionaires...
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[quote user="jimmy"] We hear quite regularly from various different sources that one of the problems that the finance and banking sector faces today is that they have a bunch of assets on their books that they don't know how to value because "no one is trading" these assets.....
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I would have to argue that for millenia, there were no minimum wage restrictions placed on the price of labor and yet, the price of labor fluctuated according to supply and demand freely. This is evident through the numerous examples provided by Adam Smith in his "Wealth of Nations," among...