EQUILIBRIUM GDP
WHAT IS THE CHANGE IN EQUILIBRIUM gdp CAUSED BY THE ADDITION OF NET EXPORTS?
Whenever longer periods are considered and hence bigger ranges of adjustments (that is, substitutions) become probable, demand curves tend to become: (i) Flatter, and therefore do supply curves. (ii) Flatter, as supply curves become steeper. (iii) Ste
With the general equilibrium framework in place, the stage is now set for introducing fiscal and monetary changes and analysing their effects on the general equilibrium. We will first introduce a fiscal change in the form of increase in deficit-financed expenditure, a
Describe functions of central bank? Answer: (A) Issue of currency: Central bank is the only authority for the issue of currency
Describe cost-push inflation and its major source.
Mold which destroyed the hamburger crop following a flood would be most probable to slash the demands for: (1) Fried chicken with mashed potatoes and gravy. (2) Soda pop and water. (3) Cucumbers, carrots, and egg plant. (4) Mustard and ketchup. (5) Tofu and sushi.
The basic determinant of the transactions demand for money is the
How does an internally held public debt differ from an externally held public debt?
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Explain the concept of “economies of scale” and “increasing returns”.
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