Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The below diagram demonstrates how all the variables are determined in classical model:
Figure: Determination of all the variables in the classical model
a) Start at the top right. Here we determine real wage W/P and L.
b) Follow L down to the point on production function in middle to the right. Here you can find real GDP.
c) Follow GDP to left to the graph of the left in middle. This graph contains a single 45-degree line. All points on a 45-degree line have the same x, y coordinates. Such graph is used to transform a variable from y axis to the x axis.
d) Follow Y up to top left graph. In this graph you find aggregate supply that is independent of P and aggregate demand that is just the quantity theory of money. From this graph, you get up P.
e) If you multiply P from upper left-hand chart, by W/P from upper right-hand chart, you would get nominal wage W.
f) Follow Y from middle left graph down to bottom left graph. Here is S (r) and I (r) and a determination of real r and I in the balance. In C + + NX + G = Y, and because NX and G is exogenous, we can calculate C.
Suppose that quantity demand falls by 30% as a result of a 5% increase in price. What would be the price elasticity of demand for this good?
What factors shift out the PPC and what is the opportunity cost of the economy moving out to get back on the PPC? Explain?
Using production possibility frontiers, and indifference curves for Argentina and Brazil, illustrate and explain the movement of both countries to the free-trade equilibrium patter
Based on the e-Activity, describe the dumping incident and how anti-dumping regulations could have been modified to prevent the incident you described.
#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”
Face Tree manufactures artificial trees and flowers. There are about 100 workers who do the routine assembly work for pay ranging from $8 per hour to $15 per hour. They work in two
Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. a. What are the required reseves of P
Over long spans of time, macroeconomies typically grow, but over short spans there are fluctuations in output and prices known as ____ ?
Q. Determine price level from the quantity theory of money? The price level The price level is determined from the quantity theory of money: P = (M.V)/Y
If the Banking system has $500,000 in demand deposit liabilities, $125,000 in total reserves and a reserve requirement of 15%: What is the maximum amount by which the money supply
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd