Macroeconomics Answers

Define velocity also discuss the role of velocity in quantity theory of money ?

Explain the Accelerators theory of investment in detail ?

Discuss the absolutes income theory of consumption in details ?

what is liquidity trap ? if the economy was in stuck in one , would you advise the use of monetary or fiscal policy ?

Discuss the determinants of the slope aggregate demand curve in detail ?

Question: Define and derive IS curve? which variable shift the position of the IS schedule ?

•With the aid of diagram(s), assess the effects of a 

reduction in the tax rate on equilibrium income 

and interest rate within the IS-LM Model.

Suppose the saving rate were increased from 6 to 12 percent in Pakistan. What predictions does the neoclassical growth model have for the effect this would have on per capita income in Pakistan over the next 30 years?

Compare Friedman’s on monetary policy in the short-run and in the long run?