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. Money market with inflation and constant money supply growth?
If πM = π and πe = π, both IS- and LM-curve will be fixed.
Figure: The money market with inflation and constant money supply growth
It is then likely to determine R* and Y *. We can also figure out the real interest rate as r = R - πe and πe is given. All variables are now concluded. As π and πW are exogenous, P and W are given over time (as long as we know W and P at one point in time). L is determined and we do not allow L to exceed LOPT as this would require a drop in real wages π > πW at least for a while.
If, for instance πM< π, LM curve will glide upwards, R (and r) will increase whereas Y will fall. In a model with inflation, we characteristically consider changes in the growth of money supply, πM, instead of changes in the money supply itself when we discuss monetary policy.
EXPLAIN ANY FIVE USES OF NATIONAL INCOME STATISTICS
Briefly explain the dynamics of the 2007 financial crisis in terms of adverse selection and moral hazard.
critically examine the keynesian theory of unemployment
Q. Describe Endogenous growth theory? Endogenous growth theory or new growth theory was developed in the 1980s by Paul Romer and others. In neo-classical model, technological p
The rate of interest in the UK also showed very interesting results, to an impulse shock on oil price. The middle left graph from Fig 4.4 shows the results. Initially, in the short
Assume that the demand for running shoes is highly inelastic and the supply curve for running shoes is highly elastic. Suppose that the tastes of the exercising public shift away f
Q. What do you mean by Patulin? It is a toxic and antibiotic metabolite produced by several species of Penicillin, Aspergillus and Paeciliomyces but the most important in the c
the central economic problem facing the group of survivors
The Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price
Explain about the short term and long term interest rate in money demand. The Opportunity Cost of Holding Money Demand: a. Short-term interest rates Rates onto assets whi
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd