by Belinder | Dec 24, 2022 | economics
We all know that saving money is important for our future, but so many of us either put off saving money for a later time or believe that we simply don’t have the money to save in the first place. Take a moment to think about how important the...
by Belinder | Dec 24, 2022 | economics
Identify a firm of your choice, it could be your own company or the one where you work, you do not have to write the name of the company. To make a better case analysis you must first write the most important economic problems that...
by Dan | Dec 21, 2022 | economics
Consider a production function Yt = F(Kt,Lt) = ¯AKα t L1−α t (1) and the resource constraint Yt = Ct + It + Gt and the capital accumulation equation Kt+1 = It + (1 − ¯d)Kt Consumers consume a certain fraction of the output so the consumption equation is Ct = (1...
by Dan | Dec 21, 2022 | economics
Consider policy rule, IS curve, and Philips curve Policy rule ∶ Rt − ¯r = ¯m(πt − ¯π) IS curve ∶ ˜Yt = 1/1 − ¯xc [¯a − ¯b(Rt − ¯r)] Philips curve ∶ πt = πt−1 + ¯ν ˜Yt + ¯o a. Derive Aggregate Demand(AD) and Aggregate Supply(AS) curve, and draw AD and AS curve....
by Dan | Dec 21, 2022 | economics
Consider following Philips Curve. ∆πt = ¯ν ˜Yt + ¯o a. Draw Philips curve. (x-axis: ˜Yt, y-axis: ∆π) What is the slope and y-intercept of the curve? b. What is the impact of the ¯ν change? Should government perform a more aggressive policy to stabilize the...
by Dan | Dec 21, 2022 | economics
Suppose we have the following short-run model. Resource constrain is Yt = Ct + It + Gt + EXt − IMt Where Yt is economy output, Ct is consumption. It is investment. Gt is government purchase. EXt is exports. IMt is imports. Government purchase depends on the current...
