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Q. Assumptions of the AS-AD model?
The most significant change we make going from IS-LM model to AS-AD model is to allow P to be endogenous. As P was constant in IS-LM model, we must 'redo' IS-LM model allowing P to be endogenous. Here is a summary of changes which should be made and what won't change:
Q. Explain the classical growth theory? Production function won't provide us with a theory or explanation of growth. It's only a convenient tool that helps us breaking down gro
List and briefly describe the principal causes of high population growth in developing countries and the major consequences.
The Red Lobster sells fresh seafood. Red Lobster receives daily shipments of farm-raised fish from a nearby supplier. Each fish cost $2.50 and is sold for $4.00. To maintain its re
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full overview as-ad model
Recognize which of the following purchases is counted as a part of NI: a) Tata motors purchases tire from Good year to equip latest Indica. b) Tata motors purchases tires fr
Why is it important for an organization to study and understand its external environment?
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