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Marginal Propensity to consume or known as (MPC) relates to a change in net or total consumption expenditure to a change in the total disposable income.Symbolically it is written as MPC = ?C/?Ywhere, ?C is the Change in total consumption expenditure and?Y is the Change in total disposable income.Let Suppose, the total disposable income in an economy increases from $ 10,000 crore to $ 20,000 crore & the consumption expenditure rises from $ 8,000 crore to $ 15,000 crore, then the MPC will be calculated as follows:
Q. Money market with inflation and constant money supply growth? If π M = π and π e = π, both IS- and LM-curve will be fixed. Figure: The money market with inflatio
What causes economic growth? Causes of economic growth: Into the Solow model, economic growth is based onto the quantity and quality of technology and resources. Growth
I sent to you an email for the online homework the deadline through 10 hours all questions are about 10 please do it in full score
REVEALED PREFERENCE APPROACH The downward slope of the demand curve was justified on the basis of utility derived by the consumer. But specification of consumer tastes in form
I used to think that economic growth ( more production) was only possible / able to occur because banks lent out more than they had (fractional reserve credit banking). Apparently
Note and explain the identification problem associated with the following statement. "During Bill Clinton's presidency the US economy saw unusually strong economic growth; thus, Mr
What do you mean by Gross Domestic Product? Gross Domestic Product: GDP stands for Gross domestic product, measures the value of all concluding goods and services produce
Now we will analyse how macroeconomic variables fit together and present models which explain the main macroeconomic variables. Using these models we can, for instance, analyse
Determine about the gross domestic product Growth By (nominal) GDP-growth we mean % change in (nominal) GDP over a particular period of time. Real GDP growth is stated as perce
what is money multiplier? what is role , importance, advantages , disadvantages , limitations and examples of money multiplier?
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