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Illustrate the basic problems of the economy?
Illustrate the three fundamental questions of resource allocation in a society.
If G increases to 200, then find out how equilibrium level of output? Describe the value of government expenditure multiplier?
Illustrate the meaning of Balanced Budget Multiplier? Illustrate that the value of BBM is one if investment is autonomously given.
Describe the effect of an increase in desire to save the saving and income in the Keynesian model.
Describe the justification of the supposition of strong excess capacity in the Simple Keynesian model.
Differentiate between the marginal propensity to consume and average propensity to consume.
Assume that in an economy velocity of money is constant. The output grows by 5 % per year, the money stock grows by 14 % per year and the nominal interest rate is 11 %. Determine the real interest r
How the social regulations differ from the industrial regulations? Explain the types of costs and benefits that are associated with the social regulation?
Represent a short exposition on the quantity theory of money. Recognize the suppositions related with it and interpret them.
Describe 2 major problems which are encountered in regulating the natural monopolies.
Describe how the creation of credit by commercial banks can encompass multiplier effect on the money supply.
Comment on the utilization of discount rate and cash reserve ratio as the instrument of credit control.
Illustrate how money supply is associated to the stock of high powered money.
Differentiate between the ex-ante and ex-post real interest rate.
Describe the dissimilarity between the saving and investment as defined by the macroeconomists. Which of the given conditions represent investment or saving? Describe:
Make a model of the loanable funds market in a closed economy.
What do you mean by Government Budget Deficit? Explain how it affects the interest rates and private investment?
Illustrate the responsibility of intermediaries in the financial market?
Compute saving, investment and government spend.
Determine the value added in each phases of production? Find out the GDP?
Recognize which of the given purchases is counted as the part of NI:
Describe critically GDP as a measure of the economic welfare.
If price of the Navy submarine increases, is the consumer price index or the GDP deflator influenced? Explain why?