Define, describe, and discuss the J Curve effect.

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Rahul Sunny answered 2 years ago

Describe with your own words the J-curve effect. Relate this to the Marshall-Lerner condition. According to...

Describe with your own words the J-curve effect. Relate this to the Marshall-Lerner condition. According to the monetary model, what happens when there is a fall in real income?

Use a J-curve to illustrate the effect on the current account of an exchange rate depreciation....

Use a J-curve to illustrate the effect on the current account of an exchange rate depreciation. Explain why the curve has the shape that it does. What condition must be fulfilled to have a positive effect of the depreciation of the currency on the current account?

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Describe the shapes of AS curve. Discuss why the shape of AS curve varies depending on three time horizons. Using the aggregate demand-aggregate supply (immediate short-run) model and explain how an increase in business taxes would affect the price level and the real GDP. ( 3 points )

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