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A significant argument for the augmentation has to do with concept of money illusion. Money illusion means that you care about nominal rather than real amounts. Imagine that your s
The government in the cross model Net taxes NT(Y) depends positively on real GDP in the cross model In this model when national income increase
Marginal Propensity to consume or known as (MPC) relates to a change in net or total consumption expenditure to a change in the total disposable income. Symbolically it is writt
What are economic growth and the growth rate? Economic grow: It rise in a country is real level of national output like measured through Gross Domestic Product (GDP). Wh
Why is quantitative easing used during liquidity trap when it lowers interest rates too?
use a numerical example to illustrate how credit multiplier works
Suppose that quantity demand falls by 30% as a result of a 5% increase in price. What would be the price elasticity of demand for this good?
What is debt swept?
Gross Domestic Savings Income not devoted to current consumption is saved. In an economy during a particular year some units will consume less than their income while some wi
what is lemda in marginal utility. And how does it affect the consumption
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