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Problem 1:
(a) Distinguish between political and partisan monetary cycles on inflation and unemployment rates.
(b) In the rule versus discretion literature, explain how dynamic inconsistency might lead to costly outcomes for the economy as a whole.
Problem 2:
(a) To what extent would expansionary monetary policy help to curb an economic crisis? Explain.
(b) Analyse and explain the dilemma of the monetary agent who tries to be conservative in financing fiscal deficits in an attempt to ensure price stability at least in the short run.
In the national income analysis, investment refers to the value of than part of the aggregate output for any given time period which takes the form of construction of new structure
Question: (a) Under what conditions would a central bank be considered independent. (b) Discuss the effects of delegating monetary policy making to an independent agent on
Question 1: (a) Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy. (b) According to you, which kind of economic system is most d
Prices of other related goods i) Substitutes: If X and Y are substitutes, then if the price X increases, the quantity demanded of X falls. This will lead to inc
Q. Describe MRPL and profit maximisation? The common rule is that firm maximises profit by producing that quantity of output where marginal revenue equals marginal costs. Profi
Suppose you have estimated the following demand function for the product you sell: Q = 5 - 0.2P At what price will the demand for your product be unitary elastic? (Hint: B
what is a firm
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what is the relation between leverage and elasticity?
Describe the Status goods of law of demand The law doesn't concern the commodities that function as a 'status symbol', add to the social status or exhibit prosperity and opulen
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