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Problem 1:
(a) Distinguish between political and partisan monetary cycles on inflation and unemployment rates.
(b) In the rule versus discretion literature, explain how dynamic inconsistency might lead to costly outcomes for the economy as a whole.
Problem 2:
(a) To what extent would expansionary monetary policy help to curb an economic crisis? Explain.
(b) Analyse and explain the dilemma of the monetary agent who tries to be conservative in financing fiscal deficits in an attempt to ensure price stability at least in the short run.
Problems of prices and Incomes policy i. Confrontation The imposition of the prices and incomes policy, voluntary or statutory, risks the possibility of confrontation w
the benefits of exchange in the light of the law of association, the introduction of money in direct exchange and way income gets distributed among market participants
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1. Define 'Arc Elasticity'. 2. Explain the law of 'Diminishing marginal returns'. 3. What is 'Prisoner's Dilemma', of non cooperative game? 4. What is 'Third degree Discrimation'?
what is meant by equi-marginal concept
A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, Though, faces an upward-sloped labor supply curve of E= 20w-120 W
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Question 1: (a) Describe the argument that market entry erodes profits in the long run. (b) Give some reasons and discuss possible strategies used for profits to persist eve
Consider a model world which is subject to a risk of global climate change. The damage is known to be from greenhouse gas (GHG) emissions as indicated by the marginal damage curve
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