ECON 2450 Study Guide - Quiz Guide: Real Interest Rate, Money Supply, Demand For Money
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Read each part of the question very carefully. Show all the steps of your calculations to get full marks: [10 marks, during the period 1973-1975, many industrialized countries experienced a deep recession with a simultaneous sharp rise in the price level. Illustrate, using ad-as analysis: it is sometimes argued that economic growth that is too rapid will be associated with inflation. Use ad-as analysis to show how this statement might be true. When this claim is made, what type of shock is implicitly assumed to be hitting the economy? (5. The production function in an economy is given by. 0. 0025 where a is productivity and n is labour. With this production function, the marginal product of labour is. Ns where ns is the amount of labour supplied, w is the real wage, and t is the tax rate, which is 0. 5.
