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Q. Determination of variables in AS-AD model?
Once Y and P are determined, all other endogenous variables would be determined as well. Interest rate is determined by money market diagram and components of GDP are either exogenous or they rely on R or Y. W is constant and as P is determined, so is real wage. Then L and unemployment rate is determined as well.
Q. Illustrate diffrent types of interest rates? There are many other interest rates in a society. For instance, you will earn interest when you deposit money in a bank account
explain the terms abnormal profits and normal profits
REASONS TO NATIONALISE SARB
Why might external economies of scale be of interest to developing countries?
Q. Classical model of the labor market? We begin by explaining the classical model of the labor market. The demand for labor L D is assumed to be inversely re
A cupcake store is located in a mall and is the only cupcake store in that mall. The demand schedule for cupcakes (per dozen) is given in the table below. If the marginal cost to p
From stock and watson 3rd edition introduction to econometrics Using the data set CollegeDistance described, run a regression of years of completed education (ED) on distance to t
Macro Economics 1. How was the Classical Theory of interest role criticized by Keynes? 2. Illustrate the barter system that was used in early times in lieu of money. 3.
Monetarism This school argues that disturbances within the monetary sector are the principal causes of instability in the economy. According to monetarists, the money supply i
Store of value - Economic functions of money If you are a fisherman and have a temporary surplus of fish that you want to store for the future, storing the fish might not b
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