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Q. Determination of variables in AS-AD model?
Once Y and P are determined, all other endogenous variables would be determined as well. Interest rate is determined by money market diagram and components of GDP are either exogenous or they rely on R or Y. W is constant and as P is determined, so is real wage. Then L and unemployment rate is determined as well.
Incentives Incentives designed to increase effort, reward enterprise and encourage saving and investment include: an emphasis on the effect of a reduction in the margi
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provide data and analysis for the real GDP (as total and per capita) and its growth rate then draw a graph and identify the periods of the Malaysia’s business cycle 2007 -2011
Define the term- inflation Inflation between two points in time is defined as the percentage increase of price index between these two points in time.
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