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The below diagram demonstrates how all the variables are determined in classical model: Figure: Determination of all the variables in the classical model a) Start at
how to maintain equilibrium gdp in foreign trade
Table Summary of results from the ADF test Test Number Oil GDP Interest rate Inflation Unemployment Exc
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
Debate between New Classical and New Keynesian economics?
Suppose you belong to a tennis club that has a monthly fee of $75 and a charge of $5 per hour to play tennis.
COMBINED ISLM MODEL
compute: credit multiplier, maximum change in the money supply
Q. Describe Supply and demand in macroeconomics? In microeconomics, we are careful to distinguish between demand, supply and observed quantity. The first two are hypothetical c
At first, it may seem obvious that consumption will rely on Y. If GDP is doubled in real terms over a number of years, government consumption, private consumption and investment wi
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