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The short run and long run is not determined by a set period of time, but rather by which factors of production are fixed. In the short run, at least one factor of output is fixed. Whereas in the long run...

Interest rates, which represent the cost of borrowing money and the returns from saving it, are used by central banks to control the level of inflation. If the central bank wants to increase inflation, it...

A recession is when an economy experiences negative growth in terms of GDP for two or more consecutive quarters. If an economy such as that of the US, a major trading partner, were to enter a recession it...

Price elasticity of demand is a measure of the relationship between the quantity demanded for a good and the price of that good. We are more concerned with the coefficient of the change and not the direct...

A monopoly is a firm with a majority market share in a particular industry. Barriers to entry are things that stop potential new entrants from entering the market, thus keeping competition in monopolistic...