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Q. Consumption function in the IS-LM model?
The consumption function will be the same as in cross model, consumption will depend positively on Y. In the classical model, consumption relies negatively on the real interest rate. You can allow consumption to depend negatively on interest rates in the IS-LM as well. You should then write C = C(Y, R). In the literature, both variants are found but then since the results will be largely the same so we choose to let C depend on Y only, C = C(Y). We will also, for the same reason, model imports as a function of Y only albeit it may depend on R as well.
it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run
Which of the following equations is FALSE for perfectly competitive firms? A. Total cost = fixed cost + variable cost B. Marginal cost = change in total cost / change in quantity o
a) There is a general trade, and sometimes prominent as in case of UK, Canada, and Europe. When the tariff rates are showing an upward trend, the trade/GDP ratio is either declinin
Some equipment that costs $1000.00 has a 5-year depreciable life and an estimated $50 salvage value at the end of time. Determine whether to use straight-line or SOYD depreciation.
Note that it's changes in prices during 2008 that matter for the high real interest rate (time period when your deposit is earning interest). This means that you can never know how
Q. Equilibrium in the labor market? Equilibrium in the labor market Real wage W/P will be equal to the equilibrium real wage in the classical model
You have two bags of polymer. Bag A has 10 kgs of polymer with weight average molecular weight of 336.6 kg and Bag B has 20kg of polymer with weight average molecular weight 392.7k
In order to observe the correlations between each variable, the most effective method to use is Vector Autoregression (VAR). VAR estimation uses a system of simultaneous equations
define business cycle
What is green GDP and How it is evaluated ?
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