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.
Company A owns a patent with 15 years of remaining life. Company B is paying royalties to Company A for a license to the patent. It is estimated that royalty payments (end-of- year
The demand equation for champagne is given by P = 10 - Q. The supply schedule for champagne is given by P = Q. Note that P denotes price per bottle in dollars, and Q is quantity me
Derive the conditions for steady state in the Solow model. What are its implications? In what respects is the golden rule different from the steady state?
Given the demand and cost data you will have available (see information below), briefly describe the process you would use to determine optimum output and price levels in the devel
The director of admissions at Kinuza University in Nova Scotia estimated the distribution of student admissions for the fall semester on the basis of past experience. What is the e
Discuss how decisions are made in your workgroup. Which model is used for what situation? Be sure to provide specific examples of at least three situations and what model was used
The final and most important part of the methodology is the impulse response functions which will provide the most information with regards to the aim of the project. In order to a
what is okun''s law ? In economics study, Okun's law also named after Arthur Melvin Okun is an empirically observed relationship relating among unemployment to losses in a specific
To the extent that statutory compliance mandates conditions that formerly were only available to workers who had union negotiating power to win such conditions at the bargaining ta
In the long run, imports will most likely be paid for with: a. Aexports. b. The sale of real and financial assets. c. the extension of credit. d. higher domestic unempl
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