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. Overnight interest rates targets and money supply? There are many ways to explain the significant connection between overnight interest rate target and money supply. We will
Using a short-run Phillips Curve, illustrate the change in inflation and unemployment resulting from the increase in profit expectations.
Q. What do you meant by Investment? When we use the word investment, we characteristically mean 'gross investment'. Fundamentally, gross investment comprises all finished goods
The final and most important part of the methodology is the impulse response functions which will provide the most information with regards to the aim of the project. In order to a
what is the cause of inflation in PNG
can you tell me how this works, i am struggling to write my report in economics and i would like to know how much does it cost some help
use a numerical example to illustrate how credit multiplier works
Use the distinction between the charasteristics of private and public goods to determine whether the following should be produced through the market system or provided by the gover
Let the real interest rate, i r , equal 5 percent and the rate of depreciation, d, equal 10 percent. In this case, if the price of a piece of capital is P K = $10,000, what is th
How to get the Euler equation?
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