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!
Q. Explain function of AS-AD model?
The function of AS-AD model is to extend IS-LM model so that we can analyze situations where Y > YOPT. To achieve this, we should make P endogenous in the AS-AD model. When P is endogenous as well as allowed to vary, real wage W/P may vary even if nominal wage W is fixed. AS-AD model, hence, maintains assumption of fixed and exogenous nominal wages W. This is consistent with 'The General Theory of Employment, Interest and Money' by John Maynard Keynes in that he quite vigorously argue that 'wages tend to be sticky in terms of money'whereas real wages won't be as stable.
When P is allowed to increase, real wage W/P may fall and with a lower real wage, labor demand would increase and so will GDP (as long as there is adequate demand). By making P endogenous, we can allow for Y to be greater than YOPT.
Macroeconomics: Question 1 and 2 relate to content and skills covered --- OPEN-MARKET MACROECONOMICS: BASIC CONCEPTS , International Trade and Exchange Rates Question 3 relates to
why is credit multiplier lower than money multiplier
A negative outflow to the U.S. balance of payments is generated by the purchase of United States assets (such as United States Treasury bonds) by foreign investors and the sale of
determinants of money supply
Assuming an economy with no government and no foreign trade. Measure GDP for the following output scenario: There are three firms: firm A is a minning company, firm B is a stee
Q. What is the basic function of Central banks? A central bank is a public authority which is responsible for monetary policy for a country or a group of countries. Two signifi
A stock investor would like to have an idea concerning the average return of stocks that are traded on a certain exchange. In a sample of 99 stocks, the average return was 9 percen
how to calculate it
In a survey of 155 publicly-traded companies, the average price-earnings ratio was 18.3 with a standard deviation of 7.6. When testing the hypothesis (at the 5% level of significan
A company is considering two types of water heaters. The associated costs are shown below. The estimated annual cost of operation for oil heaters equals 365 x 41045/EF x Fuel Cost
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd