The natural rate of unemployment or Non-Accelerating Inflation Rate of Unemployment (NAIRU) is the rate of unemployment at which inflation…

## Can two indifference curves cross?

An indifference curve maps out all the different combinations of consumption which yield the same utility. Consider the following example…

## Three different ways to calculate GDP

Three methods of calculating GDP: The Expenditure Approach The Income Approach The production Approach Gross Domestic Product (GDP) measures the…

## Classical supply curve

Classical economist believe that there are no short-run rigidities and that only real variables determine output. This means that the…

## The natural level of output

The natural level of output, depicted as the Long Run Aggregate Supply (LRAS) curve is the level of output that…

## Relative supply

Consider the following two economies: home and foreign. Both are endowed with 100 units of labor and both produce cheese…

## MaxiMin Strategy/MiniMax strategy

In game theory, Maximin/Minimax are strategies used when playing games. The strategy in this case is to maximize the smallest possible…