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Problem 1:
i) How might unemployment arise?
ii) Critically explain how fiscal policy can be used to reduce the unemployment rate in an economy.
iii) ‘'Inflation always comes at the expense of unemployment''. Comment.
Problem 2:
i) Briefly identify the cases for government intervention in an economy.
ii) Suggest and evaluate ways of how government actually intervenes in such a situation.
"Cross-Correlations of output(t) with" "x(t-1)" [3,] "output" "0.3" [4,] "consumption" "0.1
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I am risk averse, and trying to maximize my expected value of c0, 5, where c is my fortune. I have 50.000 in cash, and also art with a value of 200.000 which I keep in my basement.
Commodities that are viewed as luxuries typically have price elastic demand, and commodities that are requirements have price inelastic demand. There is easily no substitute for a
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