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The demand for nominal balances rises with the price level. At the similar time inflation causes the real demand for money to fall. Describe how these two assertions can be both correct.
Present a brief exposition on the quantity theory of money. Recognize the assumptions associated with it and interpret them.
Describe the relationship between money supply, velocity of circulation, price level and volume of economic transaction.
Discuss the significance of the constancy of velocity of circulation of money.
how the demand of pizzas in pizza hut affecting the market of fast food
Suppose that between January 2011 and January 2012 the total number of people employed and the unemployment rate both fell. Briefly explain how this is possible. [2 marks]
Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002
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Assume a competitive industry with two hospitals. The hospitals compete in price (such that P = MC ), face the inverse demand curve =10 - Q , and have a constant marginal cost of
Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 12% and a standard deviation of 17%. B has an expected rate of return of
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what reasons limit the bargaining power of trade union in developing countries
Assume the marginal propensity to consume = .8, and government purchases increase by $.2 Trillion. 1. Potentially, how much will real GDP increase in the short-run after the inc
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