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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.
Suppose that a firm’s production function is given by Q=30L-3L2, where L is labor input and Q is the output. a) Derive and draw the firm’s demand for labor while the firm’s produc
Q. What is Exchange Rate? Exchange Rate: The ‘price' at which currency of one country can be converted into the currency of another country. A country's currency is ‘strong,'or
explain diagramatically Bain''s limit pricing mode
using necessary and sufficient condition explain consumer surplus diagrammically and mathematically?
The Money Creation Process is explained below: We can now study the money supply or the creation process. Suppose the government wishes to buy pencils worth Rs. 10 for the offi
Nature of Expectations in Keynes' Theory : The above discussion on the nature of expectations in Keynes' theory may be summarised as follows: 1) In forming long-term expec
Perfect competition and monopoly are rarely found in the real world and thus they do not represent, for the most part, the actual market situations. Therefore, the conclusions whic
How many half-lives are required for the concentration of reactant to decrease to 1.56% of its original value?
THEORY OF DEMAND: The consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory th
Suppose that the price of schooling is $20 per year of schooling and it suddenly rises to $40. Compute the point price elasticity of demand at the initial price level and at the fi
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