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QUESTION
(a) Explain the real business cycle theory.
(b) Using appropriate diagrams differentiate between inflationary and deflationary gaps.
(c) Differentiate between the Life-cycle theory and the Permanent income theory of consumption and saving.
QUESTION (a) Explain and discuss the Structure Conduct Performance framework (b) The hypotheses of interest in the Structure Conduct Performance framework are as follows- H
Can less developed countries economies grow by developing its primary sector as agriculture? Less developed countries economies can grow by developing its primary sector as ag
Explain foreign direct investment: 1. Identify and briefly explain three costs of foreign direct investment (FDI) for a country such as China (the home country) and two benef
who is the proponent of theory of economic rhythm?
Explain why Caerphilly are considering this model of service provision Examine the costs and benefits of joining the shared service model. Your answer should cons
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Consider the following four CP investors: Series A: $5m FV (and 2X liquidation preference) or converts to 5m shares; Series B: $10m FV or converts to 8m shares; Series C:
(present value) Suppose an entrepreneur considers to invest in a project. It needs a cash investment $I at year t = 0. If she/he invests, the project will generate an annual cash
What does Rostow predict? For Rostow: • Savings and capital accumulation (formation) are central to the procedure of growth therefore development • The solution to de
QUESTION (a) Using diagrams where appropriate, explain the concepts of scarcity, choice and opportunity cost. (b) Distinguish between positive and negative externalities, il
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