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Purpose and Plan
Foundations for Specification
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adjustment aggregate aggregate demand analysis assume average balance banks basic becomes behaviour business sector capital inflow Chapter comparative advantage component consumer consumption cost curve deficit deposits depreciation domestic dynamic econometric model effect endogenous variables equation equilibrium estimate ex-ante ex-post excess demand exchange rate exogenous factors of production finance firm fixed capital flow forces forecast full employment goals hence household hypothesis imperfect competition important income effect increase individual interest rate international sector inventories investment opportunities isoquant labour macro-model macro-parameters marginal maximize ment money multiplier money supply multiplier needs observed opportunity cost output parameters payments period price level problem production function profit purchase ratio represent revenue saving securities social society solution structure substitution substitution effect taxes technical progress theory tion trade transfer payments trend units wealth welfare workers yield