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Read the policy brief by Vijaya Ramachandran, Alan Gelb, and Manju Shah entitled, "Africa's Private Sector: What's Wrong with the Business Environment and What to do About It," from the Cgdev website https://cgdev.org/content/publications/detail/1421337/ and use it to answer the following question:
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity. What factors do the authors believe are important to starting and sustaining an entrepreneurial culture in Africa? (If you can compare the advice proffered in this article to the remarks about African economic growth by Sudhir Shetty in his Rethinking Development Policy talk on 10/22, so much the better!)
Explain how the aggregate expenditure function shifts in response to the changes in each of the following variables:
Explain the impacts of an expansionary fiscal policy such as a tax cut on the levels GDP, Consumption, Investment, interest rate and unemployment and price.
The winners of the Nobel Prize in economic science were recently announced-who were they? For what contribution to our understanding of economics were they recognized?
According to law of comparative advantage , who should produce wheat and who must produce Cd palyer? Evaluate all relevant opportunity cost.
With the help of an AD-AS diagram, explain the effect on the price level and real GDP. Use an upward sloping AS curve and be clear about the interconnections among markets.
Vulnerability Analysis
Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to describe the equilibrium level of real GDP and prices if the economy is operating:
What happens to the equilibrium price and quantity in each market? Which product experiences a larger change in quantity? Which product experiences a larger change in price?
Suppose a frost kills a large portion of an orange crop, with a resulting higher price of oranges. It has been said that such an increase in price benefits no one since it cannot elicit a supply response; the higher price, it is said, simply "line..
Illustrate the position of US economy over the next couple of years using aggregate demand and supply curves if these expectations are to be realized.
What money supply must the Bank of Canada set next year if it wants to keep the price level stable? What money supply must the Bank of Canada set next year if it wants inflation of the ten percent?
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