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Define the aggregate price level in the macroeconomics.
Aggregate Price Level:
A nominal measure is a measure which has not been adjusted for modifications into prices over time.
A real measure is a measure which has been adjusted for modifications into prices over time.
The modifications in real wages are a superior measure of changes into employees’ purchasing power than the modification into nominal wages. The aggregate price level is the whole level of prices into the economy.
What is the capital-output ratio? Capital-output ratio: This ratio (k) is the amount of capital required to produce £1 of Gross Domestic Product generated, every year.
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If an economy is experiencing reduction, will the nominal interest rate be higher or lower than the real interest rate? What is the equation that relates nominal rates, inflation a
Demand
QUESTION Write detailed notes on the following: (a) Activist and non activist monetary policy debate. (b) Optimality of Policy Rule compared to discretionary monetary pol
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Draw a Supply or Demand Diagram A) Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due largely to increases in the price of energy and food
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