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Find the Equilibrium Quantity In a small town only two candy shops operate and they compete with each other in quantity. Consumers do not differentiate between candies sold by
Consider an economy characterized by the following Cobb-Douglas production function: Y=4K 1/4 L 3/4 Where K and L represent physical capitaland labor, respectively. Assume t
Interest rate determination The real interest rate r will be equal to the equilibrium real interest rate In the classical model we define equil
Business Cycles Economic growth is not a continuous process. Superimposed on the long-term trends are short-term fluctuations in the levels of economic activity and\or in grow
Whenever real GDP declines, nominal GDP must also decline
concept of multiplier - static and dynamic
what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?
Summary of the cross model The below list summarizes the cross model and associates it to classical model: Labor Market: Real wages W/P is exogenous in cross model
working of static and dynamic multiplier in consumption function
Equilibrium and Disequilibrium In physical sciences, equilibrium is a state of balance between opposing forces or actions. The meaning of equilibrium in economic theory is exa
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