Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Explain the basic characteristics of IS-curve?
IS-LM diagram
IS-curve
The IS curve shows all combinations of R and Y where the goods marketis in equilibrium. The IS-curve slopes downwards.
The goods market is in equilibrium when YD(Y, R) = Y. Note that when R is given, IS-LM simplifies to cross model:
Figure
If we know R, we can figure out the equilibrium value of Y using the cross model. Additionally, if we know Y we can conclude R from the money market. None of the methods, though, will gives us both Y and R simultaneously.
Consider the following question: What should happen to Y when we change R if we want the goods market to remain in equilibrium? To answer this question, consider two different interest rates R1 = 5% and R2 = 10%. As YD relies negatively on R, YD(Y, R1) would be larger than YD(Y, R2). With a higher R, we should have a lower Y for the goods market to be in equilibrium.
State the Price level and time We are rarely interested in the value of price level at a specific point in time. What we are interested in is percentage change in the price lev
why is imports subtracted from the expenditure approach
What do you mean by Gross Domestic Product? Gross Domestic Product (GDP): It measures the value of economic activity which is output produced, into the geographical bound
Why did housing prices rise rapidly during 2002-2005? Why did the mortgage default rate increase so sharply during 2006 and 2007 even before the 2008-2009 recession began?
outline two main restrictions by indian government applied to import. Using the data from your case study analyse and explain who would benefit directly and who would lose directly
Use the distinction between the charasteristics of private and public goods to determine whether the following should be produced through the market system or provided by the gover
What are between material and non-material progress? • Material progress considers to as economic growth. Growth is only one dimension of development. Growth doesn’t unavoidab
using a graph of the classical labour market, illustrate the effects of a real wage existing in the market that is lower than the equilibruim real wage.what will eventually happen
difference between mercantilism and absolute advantage
DEMOGRAPHIC FEATURES IN DEVELOPMENT: We have learned in the previous unit that human resources play a significant role in generating aggregate flow of goods and services. The
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd