Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Show the example on IS-curve?
Figure
We can explain this argument with the above figure.
1. Start by identifying R1 and R2 in lower graph.
2. Draw aggregate demand for both interest rates - the one corresponding to lower interest rate will be higher than the other.
3. Identify the resulting GDP in upper diagram for both interest rates - the highest level of GDP corresponds to lower interest rate.
4. Extend these levels of GDP to lower graph. This will give you two points in lower graph.
5. Continue with other interest rates if you like. Result will be a curve in the lower graph that we call the IS-curve.
IS curve will identify all combinations of Y and R where YD(Y, R) = Y, which is, where goods market is in equilibrium. Economy should be on this curve if commodity market is to be in equilibrium. Though an analysis of the goods market alone won't help us identify at which point all markets are in equilibrium. Note that cross model is denoted by a single point on the IS-curve - the point corresponding to exogenously given interest rate. Which is why we can determine Y in cross model only from commodity market.
Q. Equilibrium in the labor market? Equilibrium in the labor market Real wage W/P will be equal to the equilibrium real wage in the classical model
if we impose any rule and regulation on clasical model like not expoit polutionso what is effect on factor of clasical model
assuming that B=0.33 Y1998=[0.33]Y1998 Estimate the permanent income for 1998
why is international trade important south africa
What is fixed cost and variable cost? By the Production Function to Cost Curves: A fixed cost is a cost which does not depend onto the quantity of output generated. This i
What does a shift in the demand to the right mean? Why does the demand curve shift?
The below diagram demonstrates how all the variables are determined in classical model: Figure: Determination of all the variables in the classical model a) Start at
Consider following 5,000 value securities. Bond Coupon Rate Selling price coupon payment yield to maturity% 6% $5000 6% $5500 10% $5000 12% $4500 A. Are those securities abov
Explain the purposes economists disagree and using models of economics. Using Models of Economics: a. Positive economics b. Normative economics A forecast is an easy p
"Consumption" is an old name for tuberculosis (TB) that explains how the illness wastes away or consumes its victims. TB is "an ancient enemy" that has plagued human kind for more
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd