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Q. Definition of Money?
Before talking over macroeconomic models we should define what we mean by money. Money has aninteresting and long history and an understanding of how we came to use money is useful for any macroeconomist. Unfortunately, there isn't enough space to explain how money was 'invented' and how it evolved over time. There are, though, many excellent descriptions on Internet.
'Money' in economics is in fact not as simple to understand as you may think and many use the term money in a way inconsistent with how it's described in economics. Money is defined as any token or commodity which is generally accepted as payment of goods and services.
Q. Demand for money and GDP? The demand for money also relies on the GDP as GDP is closely associated to national income. If you choose to hold a fixed proportion of your wealt
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Filbert and Lychee have convex indifference curves. Note Filbert is indifferent between baskets (3, 2) and (4, 1)--these are x, y coordinates. Lychee is indifferent between baskets
Q. Describe about Price level and time? We are hardly interested in the value of price level at a certain point in time. What we are interested in is percentage change in the p
what is difference b/w dynamic and static multiplier
U.S. employers have strongly opposed a corporatist agenda, under which employment relationships would be jointly governed by unions, employers, and government. This orientation has
Identify and explain the evidence for and against the competitive model. Provide specific examples.
Consider a market for fish whose market demand and market supply for fish is specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively. The equilibrium price and quantity is
Q. Money market with inflation and rising money supply? Figure: The money market with inflation and rising money supply If we let π M refer the growth rate in money
What is the difference between the short-run framework and the long-run framework? Discuss how each relates to supply and demand.
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