Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The below diagram demonstrates how all the variables are determined in classical model:
Figure: Determination of all the variables in the classical model
a) Start at the top right. Here we determine real wage W/P and L.
b) Follow L down to the point on production function in middle to the right. Here you can find real GDP.
c) Follow GDP to left to the graph of the left in middle. This graph contains a single 45-degree line. All points on a 45-degree line have the same x, y coordinates. Such graph is used to transform a variable from y axis to the x axis.
d) Follow Y up to top left graph. In this graph you find aggregate supply that is independent of P and aggregate demand that is just the quantity theory of money. From this graph, you get up P.
e) If you multiply P from upper left-hand chart, by W/P from upper right-hand chart, you would get nominal wage W.
f) Follow Y from middle left graph down to bottom left graph. Here is S (r) and I (r) and a determination of real r and I in the balance. In C + + NX + G = Y, and because NX and G is exogenous, we can calculate C.
Determine the present worth of a geometric gradient series with a cash flow of $50,000 in year 1 and increases of 6% each year through year 8. The interest rate is 10% per year.
Joe has preferences over pizza (p) and beer (b) given by U = pb. The marginal utilities are MU p = b and MU b = p, and Joe's income is I = 60. 1. Find Joe's optimal consumptio
ChoppinAxe is a small Swedish firm that produces wood planks and operates in a perfectly competitive market. Every firm in the market has the following total cost function: C(qi
1. # of sellers, # of buyers 2. entry and exit conditions 3. product characteristics 4. short run P&Q determinations and the resulting 3 possibilities for excess profit (graphs ar
Explain about the elasticity and total revenue. Elasticity and Total Revenue: a. When demand for a good is elastic, a raise in price decreases total revenue. Then Sales effe
what cause keynesian unemployment?
Should dental offices be accredited similar to the standards that hospitals are?
You need to choose between two replacement compressor options. One costs $6400 and is 70% efficient. The other costs $9800 and is 85% efficient. Both have an average life of 8 year
State about the international capital flow An international capital flow is defined as movement of money for the purpose of speculation or investment between countries. It inc
A change in government purchases of goods and services results in a change in real GDP equal to $200 million. Assume the absence of taxes, international trade, and changes in the a
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd