What simplifying assumption does macroeconomic model make, Microeconomics

Assignment Help:

What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)? 

The simplifying assumptions are:

 1) The household and institutions sector having only households.

2) Only the business sector invests; the household and institutions sector and the government sectors are supposed to only consume 

3) Only the business sector produces

 


Related Discussions:- What simplifying assumption does macroeconomic model make

Utility maximization, u=2x^2+3y^2 hence income=310 birr and price=3 birr c...

u=2x^2+3y^2 hence income=310 birr and price=3 birr calculate quntity of x and y the optimize&minmize utilityfor the given income

Theory of production and cost, 1.A firm producing Golf sticks has a prod...

1.A firm producing Golf sticks has a production function given by Q=2v(K L) In the short run, the firm’s amount of capital equipment is fixed at k = 100. The rental rate for k

Pricing ATM Machines, A bank in a medium-sized midwestern city, Firm X, cur...

A bank in a medium-sized midwestern city, Firm X, currently charges $1 per transaction at its ATMs. To determine whether to raise price, the bank managers experimented with a numbe

Production theory, why does gap between the ATC curve and the AVC curve dec...

why does gap between the ATC curve and the AVC curve decreases as the level of output increases

What do you meant by retained earnings, Q. What do you meant by Retained Ea...

Q. What do you meant by Retained Earnings? Retained Earnings: Business profits that aren't distributed to shareholders (by dividends or other pay-outs) thoughinstead are retain

Markets, What are markets types of markets

What are markets types of markets

Absolute advantage and comparative advantage, Absolute advantage is the sim...

Absolute advantage is the simplest yardstick of economic performance and it may be simply describe as If one person or a firm or a country may produce more of something with the sa

#title.demand and supply ., a. Determine Australia’s market equilibrium ...

a. Determine Australia’s market equilibrium for TV sets. i. (1) What are the equilibrium price and quantity?

Shortage/surplus, Students at XSU cannot register for english classes. Is t...

Students at XSU cannot register for english classes. Is this a situation of shortage or surplus of classes? Explain. Also would you expect market forces to do to tuition?

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