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Using Simple Keynesian Model, discuss the effect of the following:
a) An increase in govt. expenditure.
b) A decrease in lump sum taxes.
In this context compare the govt. expenditure multiplier with tax multiplier
Suppose the economy is currently in recession, and the exchange rate if fixed using the IS-LM model. a) Explain and illustrate the economy adjustment (in the medium run) b) E
Trade barriers come in a lot of forms. Quota is one. This is when a country sets a limit to the imported products. This is completed for a number of reasons. One is due to the gove
Christina Romer and Jared Bernstein in "The Job Impact of the American Recovery and Reinvestment Plan" calibrated the impact of the proposed expansionary fiscal policy (we know it
Firm effects are more important the industry effects. What does this mean? Can you think of situations where this might not be true?
Q. Describe Market interest rates? The most significant interest rates from a macroeconomic perspective are interest rates that government pays on the loans they use to finance
definition, argument to protectionism and argument against protectionisms
what is the relationship betwen growth and poverty? either it is positive or negative?
What is the difference between money multiplier and credit multiplier
Using the equilibrium in the labor market and the model IS-LM explain the different behavior described by the classic and keynessian schools when there is an increase in public spe
Over long spans of time, macroeconomies typically grow, but over short spans there are fluctuations in output and prices known as ____ ?
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