Simulation of the process of achieving equilibrium

The equilibrium price can be interpreted as a “fair” exchange price, which is established as a result of numerous paired transactions between sellers and buyers. This state of equilibrium is remarkable in that it is completely satisfied with demand, and there is no excessive production of goods, i.e. there is no overproduction of the product […]

Money Market Equilibrium

The money market model combines the supply and demand of money. At first, for the sake of simplicity, we can assume that the supply of money is controlled by the Central (National) Bank and fixed at the level of . The price level will also be assumed to be stable, which is quite acceptable for […]

The essence and types of fiscal policy

Fiscal (fiscal) policy – measures of the government to change public spending, taxation and the state of the state budget, aimed at ensuring full employment, balance of payments equilibrium, economic growth in the production of non-inflationary GDP (GNP). The main instruments for the implementation of fiscal policy are tax and budget regulators. Tax regulators include […]

Budget deficit and public debt

Ideally, the total amount of government revenues should cover the amount of expenditure items of the state budget. In the event that budget expenditures are equal to revenues, the budget is considered balanced, if revenues exceed expenditures, there is a surplus of the state budget; when expenditures exceed revenues, then there is a deficit of […]