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Q. Explain Reversed Say's Law?
In the cross model, supply should instead follow demand. Cross model not only rejects Say's Law, it turns it entirely upside down. In the cross model 'demand creates its own supply'.
Just as Say's Law is criticized by many economists, there is criticism of this reversed form of Say's Law. Firms passively produce exactly what consumers want. If there is an increase in demand, firms would just produce this extra quantity. Motivation for this behaviour by the firms is further analysed when we describe the labor market in the cross model.
I need to run DSGE model of one published paper of another author. Just I would like to request to run that paper using MATLAB(Dynare). And send me the dynare code.m 100 words acce
Marginal Propensity to save (MPS) is the ratio of change in total saving to change in total disposable income. Symbolically, MPS = ?S/?Y For example, total
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An unanticipated demand-pulled inflation would normally lead to all the following problems except?
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disuss with an aid of a diagram the kinked demand curve
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