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Differentiate between Actual and Potential output.
Actual output is that level which economy in fact produces. In contrast, potential output is the aggregate capacity output of a nation; the maximum amount of goods and services that can be produced with available resources and a given state of technology.
Why is quantitative easing used during liquidity trap when it lowers interest rates too?
DEFINE IS CURVES AND DRIEVE IT
Suppose that an investment tax credit is stated to be temporary in nature, and the credit will be 10% on newly acquired capital (investment) equipment and will last just one year o
what is the importance of credit multiplier
how to maintain equilibrium gdp in foreign trade
The United States Treasury borrows money on behalf of the federal government all the time. One type of the government borrowing, called a treasury bills, promises a fixed payment a
using a classical labour market , illustrate the effects of a real wage existing in the market that is lower than the equilibrium real wage. what will eventually happen in this lab
Q. Aggregate demand in the IS-LM model? Aggregate demand Aggregate demand depends on Y and R in the IS-LM model As investments depend on R
how can the central bank influence the size of the multiplier
Describe the differences between the substitution effect of a wage increase and the income effect of a wage increase.
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