Problem on full employment
Does full employment take place if AD = AS or S = I?
Expert
This is not essential that full employment take place whenever AD = AS or S = I. This means that full employment might or might not take place at AD = AS or S = I.
In saying that the present system of floating exchange rates is managed we mean that: IMF officials determine exchange rates on a day-to-day basis. countries that allow their exchange rate to move freely will lose their borrowing privileges with the IMF. the value of any IMF member's currency
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