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Chapter 2: Consumer Choice Short Answer Questions 1. Briefly
... 3. Explain how the Marginal Rate of Substitution can be used to characterise the equilibrium outcome. Show your calculations. Brief answer: The consumption equilibrium occurs where the indifference curve is tangent with the budget line. Since the slope of indifference curve is the marginal rate of s ...
... 3. Explain how the Marginal Rate of Substitution can be used to characterise the equilibrium outcome. Show your calculations. Brief answer: The consumption equilibrium occurs where the indifference curve is tangent with the budget line. Since the slope of indifference curve is the marginal rate of s ...
Introduction to Management and Organisational Behaviour
... Integration improves efficiency → improves investment climate → higher investment rate (s rises to s’) → faster growth (knowledge capital accumulates more rapidly) ...
... Integration improves efficiency → improves investment climate → higher investment rate (s rises to s’) → faster growth (knowledge capital accumulates more rapidly) ...
Facts of Growth
... The logarithmic scale on the vertical axis allows for the same proportional increase in a variable to be represented by the same distance. ...
... The logarithmic scale on the vertical axis allows for the same proportional increase in a variable to be represented by the same distance. ...
the development of socialist economic thought
... income would have disappeared, some differences in income would still remain owing to the necessity of differentiating wages according to the amount and kind of work performed. (Dobb, The Development of Socialist Economic Thought , page 52) Note that Dobb does not say that this view is Marx’s own, b ...
... income would have disappeared, some differences in income would still remain owing to the necessity of differentiating wages according to the amount and kind of work performed. (Dobb, The Development of Socialist Economic Thought , page 52) Note that Dobb does not say that this view is Marx’s own, b ...
Robert 1050
... standard trade theory, which takes the capital stock as an endowment, is Incomplete and can be misleading. For instance, in a 2—by-—2 trade model the Stolper—Samuelson theorem incorrectly predicts the long—run impact of a tariff on factor rewards. Moreover, the output effects of a trade policy can b ...
... standard trade theory, which takes the capital stock as an endowment, is Incomplete and can be misleading. For instance, in a 2—by-—2 trade model the Stolper—Samuelson theorem incorrectly predicts the long—run impact of a tariff on factor rewards. Moreover, the output effects of a trade policy can b ...
Macro Conference IV
... Quantity 1 + k* may be greater or less than 1/, so GG may be steeper or flatter than FF. Curves GG and SS have the same slope. But, their relative heights depend on the values of and k*. Although the private sector budget constraint (18) ~p implies that S > M(, ) as long as Ip is positi ...
... Quantity 1 + k* may be greater or less than 1/, so GG may be steeper or flatter than FF. Curves GG and SS have the same slope. But, their relative heights depend on the values of and k*. Although the private sector budget constraint (18) ~p implies that S > M(, ) as long as Ip is positi ...
November 2003 FBSM exam question paper
... Place a circle "O" around the letter A, B, C or D that gives the correct answer to each sub-question. If you wish to change your mind about an answer, block out your first answer completely and then circle another letter. You will NOT receive marks if more than one letter is circled. Please note tha ...
... Place a circle "O" around the letter A, B, C or D that gives the correct answer to each sub-question. If you wish to change your mind about an answer, block out your first answer completely and then circle another letter. You will NOT receive marks if more than one letter is circled. Please note tha ...
Department of Economics - chass.utoronto
... and the rate of interest decreases. In turn, as the rate of interest decreases, desired investment expenditure increases. Diagrams 1 and 2 show this adjustment. First, before any change in the rate of interest, the decrease in G causes the AE curve to shift down to AE2 and the IS curve to shift to I ...
... and the rate of interest decreases. In turn, as the rate of interest decreases, desired investment expenditure increases. Diagrams 1 and 2 show this adjustment. First, before any change in the rate of interest, the decrease in G causes the AE curve to shift down to AE2 and the IS curve to shift to I ...
Problem Set #3: Building and Applying the IS - LM
... 500 = Y − 100r and Y = 500 + 100r. This LM curve is graphed in Figure 12-12 for r ranging from 0 to 8. c. Find the equilibrium interest rate r and the equilibrium level of income Y. – If we take the price level as given, then the IS and the LM equations give us two equations in two unknowns, Y and r ...
... 500 = Y − 100r and Y = 500 + 100r. This LM curve is graphed in Figure 12-12 for r ranging from 0 to 8. c. Find the equilibrium interest rate r and the equilibrium level of income Y. – If we take the price level as given, then the IS and the LM equations give us two equations in two unknowns, Y and r ...
To derive AS relation, we need
... A newly defined equilibrium of the whole economy in the medium run while equilibrium in all three markets (labour, goods and money one) is considered. ...
... A newly defined equilibrium of the whole economy in the medium run while equilibrium in all three markets (labour, goods and money one) is considered. ...
Issues related to forecasting framework and the medium term
... ¾ Exchange rate channel: relatively fast, with a direct impact on import price inflation (including fuel price inflation) and also for some excises set in euro; and an indirect impact via output gap. ¾ Balance sheet and wealth effects: important because of the significant degree of currency substitu ...
... ¾ Exchange rate channel: relatively fast, with a direct impact on import price inflation (including fuel price inflation) and also for some excises set in euro; and an indirect impact via output gap. ¾ Balance sheet and wealth effects: important because of the significant degree of currency substitu ...
Week_3
... reduce capital gains tax, corporate income tax, estate tax as they discourage saving replace federal income tax with a consumption tax expand tax incentives for IRAs (individual retirement accounts) and other retirement savings accounts ...
... reduce capital gains tax, corporate income tax, estate tax as they discourage saving replace federal income tax with a consumption tax expand tax incentives for IRAs (individual retirement accounts) and other retirement savings accounts ...
An Essay on e
... That is a “half bacterium” can also clone itself in one period and in half a period it clones half itself or a quarter of the bacterium. Let this be the smallest bacterium than can clone itself. The gestational period has not changed but it has been subdivided to allow partial bacterium to reproduce ...
... That is a “half bacterium” can also clone itself in one period and in half a period it clones half itself or a quarter of the bacterium. Let this be the smallest bacterium than can clone itself. The gestational period has not changed but it has been subdivided to allow partial bacterium to reproduce ...
NBER WORKING PAPER SERIES EXCHANGE RATE RULES AND MACROECONOMIC STABILITY Rudiger Dornbusch
... In Figure 1 we show the static model. The schedule LL shows combinations of real wages and real money such that the demand determined level of employment is equal to the existing labor force. •Along LL we thus have fullemployment. Above and to the left there is unemployment and below and to the righ ...
... In Figure 1 we show the static model. The schedule LL shows combinations of real wages and real money such that the demand determined level of employment is equal to the existing labor force. •Along LL we thus have fullemployment. Above and to the left there is unemployment and below and to the righ ...
Introduction to Macroeconomics 1012 Practise Mid-Term
... 5) Any two individuals will gain from exchange A) unless one has an absolute advantage in producing all goods. B) if each specializes in the production of the good for which he has the higher opportunity cost. C) unless they have the same opportunity costs for producing all goods. D) unless they hav ...
... 5) Any two individuals will gain from exchange A) unless one has an absolute advantage in producing all goods. B) if each specializes in the production of the good for which he has the higher opportunity cost. C) unless they have the same opportunity costs for producing all goods. D) unless they hav ...
Problem Set 1
... of capital, both of which result in a downward shift of the IS curve. The new equilibrium is located at the intersection of the new IS curve and the new FE line. If, as shown in the figure, this intersection lies above and to the left of the original LM curve, the price level will increase and shift ...
... of capital, both of which result in a downward shift of the IS curve. The new equilibrium is located at the intersection of the new IS curve and the new FE line. If, as shown in the figure, this intersection lies above and to the left of the original LM curve, the price level will increase and shift ...