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Illustrate the overview and importance of macroeconomics?
After familiar with this illustration, able to know:
a. An overview of macroeconomics is the study about the economy like an entire and how this is different by microeconomics.
b. T he significance of the business cycle and why policymakers look for reduce the severity of business cycles.
c. What long-run development is and how this determines a country’s standard of living
d. The importance of deflation and inflation and why price stability is preferred
e. What is unique regarding the macroeconomics of an open economy, an economy which trades goods, services and assets along with the other countries
what is real and norminal interest rates?
Analyze the relationship between the production possibilities curve and the circular flow diagram. Discuss how the change of production possibilities curve affects the circular flo
Monetary Policy Vs. Fiscal Policy According to monetarists, money is very important in determining the level of aggregate demand and that monetary policy is very potent. In con
Explain the difference among a floating and managed exchange rate. The key distinction here is that a floating exchange rate is set by market forces, i.e. supply and demand. A
Note that it's changes in prices during 2008 that matter for the high real interest rate (time period when your deposit is earning interest). This means that you can never know how
Goods in the circular flow If Y R is total value of all goods going from F R to F H , then total value added from all firms in the F R box is equal to Y R (they don't pu
Desired Aggregate Spending Desired aggregate spending refers to the volume of purchases of the currently produced goods and services that all spending units in the economy wish
Explain the meaning of a production possibilities curve
Moving along a demand curve, quantity demanded decreases 8 percent when price increases 10 percent. a. The price elasticity of demand is calculated to be____________ b. Given the
Suppose the price elasticity of demand for used cars is estimated to be 3 what does this mean?
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