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REGULATION: Government rules or laws that control the activities of businesses and consumers. The motivation for regulation is that businesses are inclined to do things that are harmful to the public--actions which need to be prevented or otherwise controlled. Regulation is essentially an extension of government's authority to protect one member of society from another. It tends to take one of two forms--(1) industry regulation that's intended to prevent firms from gaining and abusing excessive market control and (2) social regulation that seeks to protect consumers for problems caused by pollution, unsafe products, and the lack of information (market failure).
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Lesson 15: Aggregate Market | Unit 5: Policy Preview
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Page: 20 of 22
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It takes time to move the economy from short run equilibrium to long run equilibrium. Two options: - Wait for self-correcting mechanism --> A short-run imbalance in the labor market eventually triggers the steps that move the economy to full-employment production and long-run equilibrium.
- Take immediate steps --> Induced shifts in the AD, SRAS, LRAS curves that would, presumably reach full employment faster than the self-correcting mechanism.
The critical questions remains: - How much time is needed to adjust from the short run to the long run?
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EFFICIENT The state of resource allocation that exists when the highest level of consumer satisfaction is achieved from available resources. This state can be accomplished through markets when the price buyers are willing and able to pay for a good--based on the satisfaction obtained--is equal to the price sellers need to charge for a good--based on the opportunity cost of production.
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BLUE PLACIDOLA [What's This?]
Today, you are likely to spend a great deal of time calling an endless list of 800 numbers trying to buy either a T-shirt commemorating the first day of winter or software that won't crash your computer. Be on the lookout for strangers with large satchels of used undergarments. Your Complete Scope
This isn't me! What am I?
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
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"The best way to cheer yourself up is to try to cheer somebody else up." -- Mark Twain
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BVAR Bayesian VAR (Vector Autoregression)
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