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Problem 1:
(a) Explain the meaning of inflation.
(b) "Inflation is always and everywhere a monetary phenomenon." Discuss this statement.
(c) Briefly explain the link between budget deficits and inflation.
Problem 2:
Determine the monetary policy tools that the Central Bank can use to manipulate the money supply and assess the effectiveness of each of the policies.
Factors Shifting Demand Curve -
explain two theories of economic rent
Tc and TVC curves have an inverted s-shape
Determine Optimal Price, Quantity and Economic Profit A firm has a demand function P = 200 – 5Q and cost function: AC=MC=10 and a potential entrant has a cost function: AC=MC
Assume that milk operates in a perfectly competitive market, use a well labeled demand and supply model to explain how market equilibrium price of milk is being determined.
This is the practice of maximizing profits and revenues and minimizing costs, using marginal analysis.
The Hypothesis of Rational Expectations : In the General Theory (Keynes, 1936) we noted that the state of expectations was taken as given. There was, in addition, explici
law of diminishing returns
what are the properties of marshallian demand function
What is the arc cross elasticity of demand between Stop decay''s toothbrush and Decay fighter''s toothbrush? What does this indicate about the relationship between the two products
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