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Define injections and withdrawals.
"The inflows in circular flow of income are known as injections". Investment, government spending and exports are there in injections "The outflows in circular flow of income are known as withdrawals". Savings, imports and taxes are included in withdrawals.
Inflation-Unemployment Trade-off under Rational Expectations : Robert Lucas (1972) pointed out another implication of the above hypothesis of adaptive expectations. Suppose in
Derivation of compensated demand curve: Hicksian compensated demand function for x 1 is given by x 1 =x 1 (p 1 , p 2 , U), where Hicksian compensated demand curve for a good
What is methodological economics? how its significance, Describe use of methodological economics...
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Allocation Function The shifting or reallocation of production property into or out of markets based on shifts in prices for the products or services produced in that market.
Identify path of growth and development to economic maturity.
Island Economy: Consider an economy as a sea with islands of local markets. Each household produces goods and sells them on one and only one of the arrays of these markets. Go
Internal and external economies of scale: Internal economies of scale are the advantages or benefits that the firm enjoys as it expands its size or increases its scale of ope
What is law of combination
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