problem sets #2, Macroeconomics

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Mutual funds into stock also funds from money market, How would the followi...

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Unemployed individual decides to spend the day fishing, 1. An unemployed in...

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Define market for overnight loans, Q. Define market for overnight loans? ...

Q. Define market for overnight loans? The market for overnight loans Overnight interest rates are rates for loans over a single night - these are the shortest of all inte

Long-run framework, In the long-run framework, budget surpluses: A. should ...

In the long-run framework, budget surpluses: A. should be run on a permanent basis since they boost saving and investment and stimulate economic growth. B. should be run whenever o

Aggregate supply in the long run, In the short run, the discrepancy between...

In the short run, the discrepancy between actual and expected price level causes changes in output and employment. But in the long run, if all other things remain constant, the hig

Important for policymakers, Why is it important for policymakers to conside...

Why is it important for policymakers to consider both the direct and indirect effects of public policies?

Problem with the keynesian model, The problem with the Keynesian model ...

The problem with the Keynesian model We can classify two problems with the Keynesian model as developed so far: 1. Π is exogenous. Although inflation may temporarily deviate

Explain production possibility curve & competitive firm’s , (a)   Explain t...

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