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In which ways the product-cycle model inconsistent with the Heckscher-Ohlin model? In which ways are the two consistent? Explain in detail.
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- Explain why the circular flow model is circularDiscuss how the theoretical CAPM model is made operational when going from the theory to the empirical practice.Carefully examine and discuss the major differences of the Mundell Fleming Model in the short run as opposed to in the long run. Thereafter, analyse the impact of these differences on the Model. (provide graphical illustrations where needed)
- consider the generalized Romer model where the fishing-out effect and the decreasing returns to research are allowed. suppose the number of researchers grows 5% each year and labor-augmenting technology level grows 1% each year. then, there exists an upper limit for the fishing-out effect in steady state. evaluate whether is true, false or uncertain and why?Why is the circular flow model important?Why is Okun's law a useful rule of thumb to keep in mind when analyzing our short-run model?
- Explain what is the meaning of potential/long term output and why it can be said that the Solow model is primarily concerned with the long-term. 2) Explain the concept of conditional convergence. Use two graphs depicting two economies with different characteristics in order to illustrate your answer. please give me proper answer dont use chatGPT other wise i give multiple downvote and draw carefullyWhat is the intertemporal substitution hypothesis? Does this argument provide a convincing account of the cyclical trend in the unemployment rate?Do you remember the Harrod-Domar model? Derive it and apply it to a numerical case where d=4%, s=35%, and gY=8% last year. If s is expected to rise to 45% next year, what will happen to gY?
- Elaborate on how one or more of the microeconomic components, namely consumption, investment, supply and demand for money influence macroeconomic outcomes and formulations of the following macroeconomic theories: Solow Growth Model The Mundell-Fleming model Neoclassical Model of Investment Use mathematical equations and graphs where necessary.Compare graphically the behaviour of the current Average Productivity of Labour and Employment in the Real Business Cycles Model and the Coordination Failure Model following a temporary increase in current total factor productivity. Are the two different and how do these results compare to the data? (MAKE SURE ITS WITH GRAPHS!)What is relationship between the accelerator model of inventory investment and the flexible accelerator model of capital accumulation?