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Maurice has the following utility function: U (X; Y ) = 20X + 80Y ?? X2 ?? 2Y 2 where X is his consumption of CDs, with a price of $1, and Y is his consumption of movie videos, wit
fig2.3 elaplanition of sales maximisation
What is the explanation for SAC to be tangent to LAC?(In other words, why must both be tangent to each other)?
Explain how automatic (fiscal) stabilisers may help to lower fluctuations in the business cycle. Definition of automatic stabilisers as built-in to the system in terms of trans
(a) Describe clearly how the interest rate is determined in: (i) Loanable Funds Framework; and (ii) Liquidity Preference Framework. (b) According to Liquidity preference
Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good X. There is a demand for that good described by the inverse demand eq
in the keynesian model, the price is assumed to be what?
Prove that the utility approach and the indifference curve approach yield the same consumer equilibrium.
describe scitovosky''s double criterion
brief explain of keynesian consumption theory
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