What are the limitations of Circular Flow Model
What are the limitations of Circular Flow Model?
Expert
1. Does not depict transactions between households and between businesses.
2. Ignores government and the “rest of the world” in the decision-making process.
3. Does not explain how prices of products and resources are actually determined.
Illustrate and clarify the economizing problem?
Question: A country with a fixed or managed exchange rate would consider i.___________________ its currency to gain competitive advantage vis-à-vis its trade
What are the Causes and theories of inflation?
How do households dispose of their income?
How can we evaluate cost of capital?
Why is it significant that economics is not a laboratory science? What problems may be evolved in deriving and applying economic principles?
Write down the external factors which influencing the capital structure?
Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Illustrate a summary of what can cause an increase in demand?
Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr
18,76,764
1935800 Asked
3,689
Active Tutors
1412679
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!