Q. Assume market demand increases and new demand curve is now Qd = 50 - P. Furr assume government provides to each industry, a subsidy of $40 per unit of output produced. Thus supply curve now becomes Qs = 10 + 2(P+40).
Q. Illustrate what are different types of unemployment and how do they affect economy? Illustrate what is inflation? Illustrate what is deflation? Illustrate what is historical relationship between inflation and unemployment?