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Q. Describe about Capital?
By capital we characteristically mean manufactured goods which are used to produce other services and goods though aren't used up in the production process (like computers and machines). Sometimes we use term fixed capital in place of capital to distinguish capital from financial capital that comprise bank deposits, bonds, stocks and other assets. Fixed capital is sometimes divided into physical capital and immaterial capital like individual capital (skills,talent, and knowledge) and social capital.
Firstly, it is imperative that I investigate the stochastic properties of each series considered in the model prior to estimating the effects of oil price shocks on macroeconomic a
THE MODEL BUILDING A model of individual or aggregate economic phenomena represents a simplification of real world economic complexities. It may be expressed in words, ta
Q. AS-AD model with inflation? When we have inflation, both AD curve and AS curve will be gliding. 'The glide rate' of the AD curve is given by Π M whereas it is Π W that appli
Define the monopoly of Central banks The central bank has a monopoly on issuing currency, it is in complete control of the monetary base. In section 7.4.2 we will describe exac
Explain the multiplier effect with example Deposits and loans in banks give rise to an important multiplier effect. We use a simple example to illustrate this effect. Consider
what is credit multiplier?
what is business cycle
: Suppose that 100 people live around a hazardous waste dump. If the people continue to live there for 20 years, one of them will likely contract a painful, non-fatal cancer that w
If the indifference curves are straight lines with slope s, and the budget constraint is given by: x*p1+y*p2 = m, then describe the optimal choice of the consumer.
x=40-0.2p where x=x1+x2 c1=50+2x1+0.5x1 c2=100+10x2
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