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.
what is credit multiplir and how does it work
Illustrate the statement - Currency inside banks is not money The fact that currency inside commercial banks is not money may strike you as odd, but it is an important principl
difference between mercantilism and absolute advantage
How to get the Euler equation?
The study of the overall aspects and workings of a national economy is like as income, output, and the interrelationship between diverse economic sectors. It is the study of all as
You have a choice between a lottery lump sum payout of $10,000,000 today or a series of 25 annual annunity payments the first payment will be one year from today ad a discount rate
At the same meeting of the open market committee where it announced Quantitative Easing 3, the Fed chose to also announce that its currently low Fed funds rate of 0 to .25% would b
Q. Explain the problem with IS-LM model? The starting point of AS-AD model is an assumption in IS-LM model (and in the cross model) that limits its usefulness. This is an assum
Question 1: What is the equilibrium price and quantity? Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price? Qu
For a single nonprofit provider, describe an output-maximizing model to predict supplier behavior?
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