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A2 ECONOMICS: Guess Paper-4

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What is a central assertion of ‘Monetarist’ economics?
A Fiscal policy should be used for the continuous management of the economy.

B Major recessions can occur despite an unchanged money supply.
C The money supply dominates the determination of aggregate monetary expenditure.
D The velocity of circulation of money is unstable over time.

Can someone explain what this question is actually asking?? i dont understand the question.. please thanks! Qamar Baloch
 
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open market operation is the part of monetary policy (monetariss point of view) exchange rate is not dampening policy to be considered in fiscal or monetary policy.
Oh sir i got the question now I didnt pay attention that it says MONETARY ANTI INFLATIONARY TOOL... Thank You once again sir! :D
 
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What is a central assertion of ‘Monetarist’ economics?
A Fiscal policy should be used for the continuous management of the economy.

B Major recessions can occur despite an unchanged money supply.
C The money supply dominates the determination of aggregate monetary expenditure.
D The velocity of circulation of money is unstable over time.

Can someone explain what this question is actually asking?? i dont understand the question.. please thanks! Qamar Baloch

Qamar Baloch
 
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This is how it goes I guess:
ATC = (TFC+MC)/no. of units
So then find the minimum ATC...which is at 4 units :)
well the minimum ATC is at 4 and 5 units. How do u know at which level of output it will minimize ATC?
 
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27) what would be most likely in the short run to cause an increase in a country's unemployment rate?

ans: a) an increase in its potential output.

Why is this so?
 
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