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Using Lagrangian technique, find out the Least Cost of the production. First, describe the Objective function and Constraint.
Two countries, A and B, diverge in population growth rates and rates of the investment. Country A has investment rate of 10% of GDP and the population growth rate of one percent per year.
Assume Denmark prefers to fight recession through counter-cyclical monetary policy by increasing the money supply in hopes of lowering interest rates in the Denmark.
Sketch two diagrams with the money market diagram for US on the left and expected return in $/ exchange rate ($/yen) diagram on right.
Consider world in that prices are sticky in the short-run and perfectly elastic in long-run. APPP might not hold in the short run but does hold in long-run.
Assume that in our simple beach economy, there’re three lemonade stands in ple of tacwo. Each morning, the owners arrive in random order to set on the beach.
Let us return to the condition with two lemonade stands, but this time their locations are fixed.
Using separate PPC graphs demonstrate the effects of the following historical event on that area's PPC: The Bubonic Plague (Black Death) swept across Europe in 1348.
Sketch the following diagrams and explain their different shapes: the production possibilities frontier a demand curve the demand curve for a firm in perfect competition the demand curve for a monopol
What do you understand by Marginal efficiency of capital? Write down the various types of multiplier?
Illustrate and describe the Law of demand with proper graph. Describe the concept of indifference curve.
Deduce the aggregate saving and aggregate investment recognize in an open economy.
Write down the open market operations? Explain how the monetary authorities utilize open market operations to affect the market rate of interest.
Describe the components of Aggregate Demand?
Derive the Government Expenditure Multiplier in the IS-LM framework and describe that it is smaller than the Simple Keynesian Model. Describe why?
If G increases to 200, then find out how equilibrium level of output? Describe the value of government expenditure multiplier?
Illustrate the meaning of Balanced Budget Multiplier? Illustrate that the value of BBM is one if investment is autonomously given.
Describe the effect of an increase in desire to save the saving and income in the Keynesian model.
Describe the justification of the supposition of strong excess capacity in the Simple Keynesian model.
Differentiate between the marginal propensity to consume and average propensity to consume.
Assume that in an economy velocity of money is constant. The output grows by 5 % per year, the money stock grows by 14 % per year and the nominal interest rate is 11 %. Determine the real interest r
Represent a short exposition on the quantity theory of money. Recognize the suppositions related with it and interpret them.
Describe how the creation of credit by commercial banks can encompass multiplier effect on the money supply.
Comment on the utilization of discount rate and cash reserve ratio as the instrument of credit control.
Illustrate how money supply is associated to the stock of high powered money.