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Economic Theory
1. Explain the procedure of factor price determination under imperfect competition.
2. Discuss the Wage Fund Theory of Wage Determination.
3. Explain the Ricardian Theory of Rent. Also state the criticisms of this theory.
4. Determine the equilibrium rate of interest as per the Loanable Funds Theory.
5. If you were a manager of software firm, which theory would you follow and why?
Q. Explain why one can write the demand for money as follows: Md = P L (R, Y) Answer: The collective money demand is proportional to the price level. Imagine that every prices
Q. A naïve implication of the DD - AA framework is that either fiscal or monetary policy can lead to full employment. Discuss why this view is naïve. Answer: 1. Inflation m
The Russian financial crisis
Q. The two deadweight triangles are the Production distortion and Consumption distortion losses. It is simple to understand why the Consumption distortion constitutes a loss for
Q. What is an SDR? Answer: An SDR abbreviation of Special Drawing Right at the IMF and holds a place as a world reserve currency some countries especially those that do
Explanation of haberler opportunity cost with diagrams
Q. Explain why under fixed exchange rate, monetary policy is ineffective whereas under floating exchange rate it is effective in rising output. Answer: In floating by purchasi
Q. Based on the case study, "A Tale of Two Dollars," Illustrate why errors in the currency market will be more costly to the Toronto Blue Jays baseball team than errors in the fie
Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p
why is international trade important for south africa
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