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Firms in the circular flow
We divide all firms into 3 categories: FR comprises all firms which acquire raw material (farm products, iron ore and so on), FH all those that produce semi-manufactured goods (pulp, steel and so on) and FF all firms producing finished goods (cars, software and so on). We use symbol Y for GDP.
2. Use the Quantity Theory of Money to explain inflation (a increase in the overall level of prices). (4 points) If you were a member of the Federal Reserve Board of the Governor
Knowing that a neoclassical, capitalist economy depends on continuous economic growth (by making its production, distribution, and consumption more efficient), what might a savvy p
What was the total public debt outstanding on the same day in 2000? What was it in 2008?
how to calculate the ultimate change in deposits and credit?
different determinants of propensity to consume
Application of Theory of Consumer Behavior As already discussed earlier, the theory is an important tool to interpret and analyse demand curves. Apart from its usefulness as a
n 2013, approximately 58 percent of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession l
The tax-adjusted Multiplier and the balanced budget Multiplier are explained below: Taxes act as drag on the multiplier effect of government expenditure, because they represent
How is the global social progress being measured today? Name some indicators of development progress that you believe reasonably reflect actual progress. What roles do corporate ci
what happened to the equilibrium price level in Japan during the early 2000s? How did Japan''s equilibrium price level adjust between the middle of 2008 and early 2010?
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