Explain the philips curve, Macroeconomics

Assignment Help:

Problem:

Describe whether, the given statements (a-f) are True, False or Uncertain. Briefly justify our answer. Questions (g) - (h) show all your calculations. No marks will be allocated if you do not justify our answer.

(a) The flow of national income into domestic expenditure will be reduced by an increased savings.

(b) The Philips Curve shows the relationship between the rate of inflation and the nominal rate of interest.

(c) According to Purchasing Power Parity Theory, the comparative advantage of the two countries in terms of trade determines the rate of exchange between two countries.

(d) The LM schedule is always downward sloping.

(e) A reduction in the cash reserve ratio of the commercial banks, other things remaining unchanged would increase the value of the credit multiplier.

(f) A country imports only one commodity. After a devaluation of its currency by 10% its import falls from 50 million tonnes to 45 million tonnes. The elasticity of demand for imports is therefore equal to one.

(g) The table shows the price indices and weights for the three commodity groups that are included in the calculation of a country's cost of living index. The cost of living has increased by how much since the base year?


Related Discussions:- Explain the philips curve

How we can determine the macroeconomic performance, Macroeconomic performan...

Macroeconomic performance The UK's future macroeconomic performance must be judged on how average living standards improve, inflation is kept under control, economy grows and

Currency, Assume that Jimmy Cash has $2100 in his checking account and uses...

Assume that Jimmy Cash has $2100 in his checking account and uses his checking card to withdraw $210 from his ATM machine. By what amount did M1 change from this individual transac

#title.williams managerial discretion model, The different between williams...

The different between williams managerial discretion model and baumol''s sales maximization model

Weights of a sample of five boxes, The weights of a sample of five boxes be...

The weights of a sample of five boxes being sent by FedEx are: 48, 24, 28, 12, and 40. (a) Compute the range. (b) Compute the mean deviation. (c) Compute the standard devi

Unemployment, Find the labor force, the working-age population, the number ...

Find the labor force, the working-age population, the number of employed workers, and the number of unemployed workers. Unemployment rate 5.60 % Participation rate 62.50

What is productivity or average product, What is productivity? Produ...

What is productivity? Productivity or average product (AP): It is output person which is output divided through number of workers AP= Q/L. There labour Productivity can

Events x and y are mutually exclusive, The events X and Y are mutually excl...

The events X and Y are mutually exclusive. Suppose P(X)=.05 and P(Y) =.02. What is the probability of either X or Y occurring? What is not probability of X nor Y happens?

Credit multiplier, use a numerical example to illustrate how credit multipl...

use a numerical example to illustrate how credit multiplier works

Why does an indifference curve never meet, No indifference curve can inters...

No indifference curve can intersect due to all points on indifference curve are ranked equally preferred and ranked or less more preferred than each other point on the curve.

Draw a typical frap curve and explain its different regions, 1. Describe th...

1. Describe the process of diffusion in cells (not more than 2 pages). 2. Derive the equation for Fick's second law. 3. Draw a typical FRAP curve and explain its different re

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd