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Problem 1:
(a) What are the main assumptions behind the macroeconomic theory of New Classical Economists?
(b) Describe the Lucas Supply function and explain its policy implications?
Problem 2:
(a) Analyse the activist/non activist policy debate.
(b) What is time inconsistency in monetary policy and what are the classical solutions to this problem?
# define output#
MRTS and Marginal Productivity The change in output from change in labor equals: The change in output from change in capital equals
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a more simple explanation of the group equilibrium in the short and long run
A local airline charges $500 to fly (round-trip) to Louisville, Kentucky. From the past three months, whereas the $500 fare has been in effect every of the two daily flights have a
what is economic model and role of assumptions in it.
Structure of the IMF: The Central office of the IMF is in Washington DC, USA. It has 184 members. It is affiliated to the UNO. The highest authority of the IMF is the Board of
Discuss about Modern economic growth Modern economic growth is also a shift in the kinds of things we do at work and play and in the way we live. Back in immediate aftermath of
Credit Squeeze:At times private banks become reluctant to issue new credit andloans, frequently because they are worried about risk of default by borrowers. This is common at the t
Explain three major barriers to development experienced by developing countries. Well, the scope of possible answers here is, em, wide, to say the least. The issue is not to si
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