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QUESTION
Explain the meaning of classical dichotomy, neutrality of money and Walras law.
b. "In a Walrasian general equilibrium model with money as a unit of account, only relative prices can be determined" Explain.
c. Discuss Patinkin (1965) proof that a Walrasian general equilibrium model with money market leads to an invalid dichotomy and inconsistency.
d. Discuss the Patinkin (1965) solution to make the model discussed in (above c) determinate and consistent.
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elasticity concept occupies a central place in policy formulation
QUESTION (a) Explain clearly what inflation is and elaborate on its main causes. (b) "There is a trade-off between inflation and unemployment" Do you agree with this stateme
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uses of discounting principals
Choose one stock from the New York stock market which has calls and puts available. Extract the price change for each 3 month period over the last 12 months. Find the current yie
demand and supply curve for luxury goods
characterestic of economics
Discuss, using examples the economic consequences of a sudden monopolization of an industry that had been previously been competitive
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