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In the the market for Fante Kenkey, the supply and demand functions respectively are
and
When there is excess demand, price adjusts according to the equation

Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply).
Formulate and solve he first order differential equation giving P as a function of time, t. Is this market dynamically stable or unstable?
If the initial price is P = 50, how close will the price be to its long run equilibrium value, when t = 10?
Suppose that the net investment flow is described by the equation and that the initial capital stock, at time t = 0, is K(0). What is the time path of capital K?
If net investment is a constant flow at 0 (Ghana Cedis per year), what will be the total net investment (capital formation) during a year, from t = 0 to t = 1?
If (thousands of Ghana Cedis per year) – a nonconstant flow – what will be the capital formation during the time interval [1, 4], that is, during the second, third, and fourth years?
What are the special properties of Cobb- Douglas production function and how can the function be used to calculate the sources of growth

1.     Discuss the extent to which the traditional approach is an adequate model of exchange rate determination.



In the market for Fante Kenley, the supply and demand functions respectively are
and
When there is excess demand, price adjusts according to the equation

Find the long run equilibrium price, P* (that is, the price at which there is no excess demand or supply).
Formulate and solve he first order differential equation giving P as a function of time, t. Is this market dynamically stable or unstable?
If the initial price is P = 50, how close will the price be to its long run equilibrium value, when t = 10?
What's the difference between consumer surplus and producer surplus?
With the aid of a diagram, show that under imperfect market structure, the market fails to achieve Parato efficiency and general welfare?

Use the following information (in rupees):

Income (Y) = 1,00,000

Nominal Money Supply (M) = 80,000

Price Level (P) = 20

Calculate the money growth rate required to finance the budget deficit of Rs.10,000 in an

economy.


the following information about an economy is givicen: C=100+0.7YD, I=80-150i, G=60, T=40, Md=Y-3000i and Ms=1000. a. Derive the IS curve b. Derive the LM curve c. find the equilibruim value of Y and i


the following information about an economy is givicen: C=100+0.7YD, I=80-150i, G=60, T=40, Md=Y-3000i and Ms=1000. a. Derive the IS curve b. Derive the LM curve c. find the equilibruim value of Y and i


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