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Explain about the nominal Gross domestic product
It isn't very common to use CPI in construction of real GDP. The reason is that CPI measures the price evolution of consumer goods whereas GDP includes investment goods and consumer goods. Rather, it is common to use a GDP deflator as a price index. GDP deflator measures the price evolution of a basket whose composition is close to composition of GDP. Difference between the GDP deflator and the CPI is fairly small however. To avoid confusion, GDP that is not adjusted for inflation is often called nominal GDP.
Why is quantitative easing used during liquidity trap when it lowers interest rates too?
Suppose you buy call options on Microsoft stock. Each option costs $2 and has the strike price of $40 and the expiration date July 1. Discuss whether you would exercise the options
Enumerate the statement- Interest rates with longer maturity Since loans with longer maturities are substitutes for overnight loans, the central bank also has some control o
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The government in the cross model Net taxes NT(Y) depends positively on real GDP in the cross model In this model when national income increase
In 2007, the potato chip industry in the Northwest was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competi
Explain about the economies and diseconomies of scale. Economies and Diseconomies of Scale: a. There are economies of scale while long-run average total cost refuses as outp
what is analitical approch to macroeconomics
MEC and MEI curvs and their role in economics
Compute the mean and variance of the following discrete probability distribution. Where X=2, and P(x)=.5. Where X=8 and P(X) .3. Where X=10 and P(X) =.2.
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