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Q. Describe classical model of macroeconomics?
Though we use the term ‘the classical model' as if there were just one classical model, this isn't quite true. For all the models we discuss, there are many variations. Though the similarities between, for instance, all the classical models are great enough to warrant expression ‘the classical model'.
However you need to keep this in mind. If you look up the ‘IS-LM model' in different text books you will probably see different models though the main predictions from the models do tend to be the same.
Suppose that the yield curve is flat at 5% per annum with continuous compounding. A swap with a notional principal of $100 million in which 6% is received and six-month LIBOR is pa
Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.
What was the total public debt outstanding on the same day in 2000? What was it in 2008?
From estimating the aforementioned unrestricted VAR, a table of coefficient and statistics will be produced. From this table, certain statistical information can be analysed, such
An economy shows the following features C=50+0.9(Y-T) T=100 I=100-5i G=100 L=0.2Y-10i M/P=100 X=20 M=10+0.1Y a)Obtain the IS and LM for this economy b)Find out the equilibrium inc
explain and illustrate how the Lm curve is derived.
Bayer Schering Pharma AG, Germany owns the Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour s
Q. What do you mean by yield curve? Yield curve is a graph of interest rates of different maturity (recalculated to yearly rates) at a specific point in time. It's common for t
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
To really understand it, compute the following price elasticities of demand: · The price of a laptop increases by 20% and there is a 40% drop in the quantity dem
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