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Q. Explain the difference between the following two expressions:
Y = C(Yd) + I + G + CA(EP*/P, Yd) and
Y = C + I +G + CA
Answer: The first expression corresponds to a behavioral equation and thus may express equilibrium conditions for the output market or the aggregate desired demand for output. The second equation is merely an identity that is always true.
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heberler''s theory of opportunity cost notes
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Although the elegance and comprehensiveness of transactions costs reasoning has provided the internalisation approach with a powerful logic (Rugman, 1981, 1985), it is still defici
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what is net barter terms of trade and the effect on its economy
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