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Q. Explain about Counter-Cyclical Policies?
Counter-Cyclical Policies:Governments may take many different actions to offset ongoing booms and busts of private-sector economy. These policies include fiscal policies (increasing government spending when economy is weak), monetary policies (cutting interest rates when required to stimulate more spending) and social policies (such as unemployment insurance) to sustain household incomes and spending even in a downturn.
COBWEB MODEL: Concept of dynamic stability: A market equilibrium is said to dynamically stable only when disequilibrium price and quantity move and over time reach to any eq
illustrate and discuss implications of various market structure(non competitive and competitive) for price determination
Question (a) Describe clearly the three concepts of elasticity of demand. Use appropriate examples and diagrams to support your answer. (b) Consider you have been appointed
The Money Multiplier is explained below: If you see carefully, the money multiplier is nothing but an inverse of a reserve ratio. Therefore, we can write MM = 1/rr, where rr is
summary of general equilibrium
Composition of Trade: It is indicative of the structure and level of development of an economy. For instance, most of the UDCs depend for their export earnings on a few primar
Suppose that there is a credit market imperfection because of limited commitment. As in the setup with collateralized wealth, each consumer has a component of wealth which has valu
. Crumble Corporation produces cookies. Here is the relationship between the number of workers and output (in dozens of cookies) in a given day: Workers Output Marginal Product
What is optimal choice of consumer according to consumer behavior? Consumer's Optimal Choice: In the fundamental problem of preference maximization, the set of affo
subsitution effect dominate tha income effect in which good case?
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