ECON 1002 (1 Viewer)
- Thread starter sarevok
- Start date
yeh but lec notes are quite ambiguous, said s th along the lines of wage/price downward rigidity without giving details into what it means andhow it functions...
costliness in the form of unemployment is also mentioned in the lec notes...
and affirmative on the cpi overstates inflation bit, tho not mentioned in lec notes... i seen similiar thing while doing some digging up on internet...
costliness in the form of unemployment is also mentioned in the lec notes...
and affirmative on the cpi overstates inflation bit, tho not mentioned in lec notes... i seen similiar thing while doing some digging up on internet...
WaffenssLAH1985
New Member
- Joined
- May 18, 2005
- Messages
- 11
- Gender
- Male
- HSC
- 2004
Can anyone tell me wot is the essential difference btwn Neoclassical and Keynesian theory? Is the AD-AS model only used in Neo,and AE model in K???
i guess the essential difference is that neoclassicals view the economy as flexible and self-adjusting, needing little or no government intervention. also, emphasis on rational expectations and inflation being a monetary phenomenon. keynesians on other hand dispute notions of flexibility and emphasise the importance of government intervention in the economy.
i think atta said the as/ad curve was formed by neoclassical theorists who wanted to show the keynesian ad curve is compatible with their own theories, that was either in lecture 9/lecture 10, can't remember. but i don't think that's a very significant difference between the two.
i think atta said the as/ad curve was formed by neoclassical theorists who wanted to show the keynesian ad curve is compatible with their own theories, that was either in lecture 9/lecture 10, can't remember. but i don't think that's a very significant difference between the two.
it is pretty easy, you are bringing the y terms to the left hand side, factorising them, and then dividing the rhs by the factorisation (the factorisation becoming the multiplier when you do this)
edit: though in one of the tutes the answer is wrong because atta hasn't taken into account investment
edit: though in one of the tutes the answer is wrong because atta hasn't taken into account investment
ToO LaZy ^*
n/a
twin deficit = CAD + budget deficit
↑AD leads to ↑C + ↑I, which then leads to possible inflation.
to curb inflation, RBA ↑IR which then ↑$A.
imports rises and so ↓GDP (X-M)
to return to the potential output, the government would ↑G and/or ↓T, which then finally leads to a budget deficit
this is just the stuff from hsc economics
i dont know if theres a 'formula' to derive the twin deficits.
↑AD leads to ↑C + ↑I, which then leads to possible inflation.
to curb inflation, RBA ↑IR which then ↑$A.
imports rises and so ↓GDP (X-M)
to return to the potential output, the government would ↑G and/or ↓T, which then finally leads to a budget deficit
this is just the stuff from hsc economics
i dont know if theres a 'formula' to derive the twin deficits.
you can derive the twin deficit using the simple leakages = injections formula
s + t + m = i + g + x
then just rearrange
i guess if they ask you to derive it (which i doubt), then you can use the leakages = injections proof from lecture 3 and go from there
and yes, atta's slide makes no sense
s + t + m = i + g + x
then just rearrange
i guess if they ask you to derive it (which i doubt), then you can use the leakages = injections proof from lecture 3 and go from there
and yes, atta's slide makes no sense
RanyofuKenyan?
Banned
Amen to that brother.kow_dude said:
ToO LaZy ^*
n/a
boring-est. test. evar!
llamalope
yes, they're my legs.
- Joined
- Dec 15, 2004
- Messages
- 1,279
- Gender
- Female
- HSC
- 2004
i exactly predicted the stream 6 question......Komit said:
go me