October 28 - Business

October 28 - Business - the most money Also called Macro...

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Thursday November 6,2008 2 ND MidTerm 1 Real balance Effect 2 Foreign Trade Effect 3 Interest rate Effect. (supply and demand curve) cheaper to buy money, interest rate falls and after that people start buying more As price increase suppliers will supply more products. Add together the AS curve and AD line to give the price level that would give the maximum possible price of product from which the company could make
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Unformatted text preview: the most money. Also called Macro Equilibrium, with Q being the real value of products. Problems: 1. Undesirable(could be an undesirable equilibrium) (could be not at full working capacity) 2. Unstable Agrid supply curve Part one line -> Keynesain\ Part two Corner Increase -> Treansian\ Part three increase (Dramatic inflation)-> Monetorist Two Marco failures Resections and inflations....
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