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What determines the amount of output an economy produces

Assignment Help Macroeconomics
Reference no: EM132550716

1) What determines the amount of output an economy produces?

2) If a small open economy cuts defense spending, what happens to saving, investment, the trade balance, the interest rate, and the exchange rate?

3) Describe the functions of money. What is fiat money? What is commodity money? Write the quantity equation and explain it.

4) Give three explanations the real wage may remain above the level that equilibrates labor supply and labor demand.

Reference no: EM132550716

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