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The Neoclassical thinking that assumes that all firms are established with the intention of making profit has been challenged by the managerial discretion models. How successful ha
HOW TO GET THE REVENUES AND EXPENDITURES AS A PERCENT OF GDP?
Importance of macroeconomics models Using the models we can, for example, analyze what happens when the government increases consumption, when the central bank increases the tar
Q. What do you mean by Exchange rate? Exchange rate is defined as the price of one unit of currency in terms of another currency. If one euro costs 1.5 USD then 1 USD costs 1/1
Index number formulas
Overnight target rates and inflation One of the major targets of every central bank is a low and stable inflation. Its main control variable is the overnight interest rate tar
Stephanie Robbins is the Three Hills Power Company management analyst assigned to simulate maintenance costs. In Section 14.6 we describe the simulation of 15 generator breakdowns
Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.
Table Summary of results from the ADF test Test Number Oil GDP Interest rate Inflation Unemployment Exc
Explain the concept of elasticity and describe why the supply of petrol in the short run is relatively inelastic.
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