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Whenever real GDP declines, nominal GDP must also decline
The consumer's utility function is u(x1,x2) = (x1) (x2)^2 (a) Graph his budget constraint for p1 = 3, p2 = 2 and M = 900, and write down the equation for his budget line. (b)
Discuss how income flows in governed economy, frugal economy, spend their economy.
#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”
example on the calculation of IS LM Curve?
Explain about the diminishing returns to an input. There are diminishing returns to an input while an increase within the quantity of which input, holding the levels of each of
sticky price model assumptions
what happened to the equilibrium price level in Japan during the early 2000s? How did Japan''s equilibrium price level adjust between the middle of 2008 and early 2010?
Using Simple Keynesian Model, discuss the effect of the following: a) An increase in govt. expenditure. b) A decrease in lump sum taxes. In this context compare the govt.
How credit is created or the creation of credit
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