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In the Solow Growth Model, there are 5 key equations to know in order to solve the model. Production function: Yt = AKt1/3Lt2/3Capital accumu...
many buyers and sellershomogenous goodsno barriers to entry and exitperfect knowledge No sunk costsunrealisticno place for monopolies/oligopolies
The Phillips curve, derived by William Phillips in the 1950s, describes the relationship between unemployment and inflation. By plotting annual figures against each other, an inverse relationship was seen...
One type of regulation that could be used to correct financial market failure would be to impose a cash or liquidity ratio for commercial banks, to solve the issue of excessive and risky bank lending. A c...
A PPF is a graph that can be used to explain opportunity cost, and trade off. It is made up of a concave line with, for example, apples on the vertical axis and bananas on the horizontal ...
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