IS-KM Model with classical supply
discuss with the help of IS-LM model why money has no effect on output in classical supply case
If $9 is required to buy £2, what is the exchange rate for USA dollar? Answer: £1 = 9/2 = $4.5, i.e., £1 = $4.5.
Fiscal deficit: Fiscal deficit is stated as the surplus of total expenditure over total receipts, apart from borrowings. Fiscal deficit = Total expenditure (Rev. Exp. + Cap. Exp.) – Total Receipts
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.
Macroeconomic theory would be least related in analyzing the results of: (w) optional ways of funding deficits in international trade. (x) U.S. federal budget deficits. (y) consumer items purchased through middle-income families. (z) deficit spending through the United Nations.
Inflation is frequently described as "too much money chasing too few goods." Is this a satisfactory definition?
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
A flat rate income tax for all levels of income along with no exceptions would be taken as a: (i) proportional tax. (ii) progressive tax. (iii) regressive tax. (iv) common tax. Can anybody suggest me the proper exp
What relationship does the MPC bear to the size of the multiplier
How can governments seek to control their national economies through fiscal and monetary policies?
Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.
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