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Positive versus Normative Economics Positive Economics Positive economics considers with the predictions or observations of the particulars of economic life. For instance:
Q. Role of Monetary Policy? Monetary Policy: Monetary policy reflects the use by government and government agencies (mainly the central bank) of interest rate adjustments and o
What is opportunity cost? Answer: Opportunity cost is a term used in economics, to mean the cost of something in terms of an opportunity foregone (and the advantages that co
Market failures (even when they do not have international external effects) i) Self-fulfilling bank runs, government debt runs, currency crises. ii) Liquidation costs of li
explain the traditional theory of cost with suitable diagrams.explain why LAC curve is not U shaped?
what is cardinal utility. Please give an example
Clearly explain the distinction between supply, demand and equilibrium price.
conditions for an abnormal supply curve
the price of a laptop increases by 20% and there is a 40% drop in the quantity demanded
Explain how a country can peg (fix) its currency to another currency. Explanation of a pegged/fixed currency should centre on how the central bank uses the currency market mech
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