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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
Point Elasticity: Point elasticity is brought in use when the change in price is quite small, which means. The two points between which elasticity is being measured or calculat
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what is Law of Demand?
Inflation And Unemployment: Inflation describes a persistent and an appreciable increase in the general price level. The inflation rate is measured as a percentage change in a
What are the steps of the basic analytical framework in Modern Economics? Framework is very significant to master this fundamental analytical framework, particularly, these fiv
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What is inflation gap
Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produ
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