Assignment - (B)Fall Spring2010Semester...

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Assignment- MACROECONOMICS-BBA-2K9 (B) Fall Spring’2010 Semester Instructor: Imran Said Date: 13-04-10 Aggregate Demand and Supply - Activity This Activity is designed to introduce you to using aggregate demand and aggregate supply models to analyse the impact of  external shocks and government policy on the key targets of economic policy. Models Models are an important part of economics. They are used to help represent reality as we know it. They help us to be able to  investigate what we think might happen if various things change and to make some simple predictions about the future. It is  important to remember that models are a form of hypothesis - they are capable of being challenged and amended as time  goes on and the depth and quality of information improves. AS and AD curves are no different. Remember they are simplifications and they will inevitably only tell you a fraction of the total situation. In some cases, you  might come across a different result in reality to the one the model predicts. It does not mean that the model is useless but  may be that special circumstances have been at work that have amended the outcome. This should be seen as an 
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This note was uploaded on 05/21/2011 for the course MARKETING 104 taught by Professor Fazli during the Spring '11 term at College of E&ME, NUST.

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Assignment - (B)Fall Spring2010Semester...

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