becomes the quantity theory of money. The quantity equation can be seen as a theory of what determines nominal GDP (the level of prices). With MV = PY (where velocity is constant)‚ then a change in the quantity of money M must cause a proportionate change in nominal income PY. That is‚ if velocity is fixed‚ then the quantity of money determines the nominal value of the economy’s output/GDP. Suppose a country has a money demand function (M/P)^d = kY‚ where k is a constant parameter. The money
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you can find the equilibrium price. This is useful when you want to satisfy you and your customers. 5. There are some factors which affects supply and demand. This are: TRIBE (Tastes and preferences‚ Related good and income‚ Income‚ Buyers number‚ Exaptation of price) and ROTTEN (Resource‚ Other goods‚ Taxes subsides and government regulation‚ Technology‚ Expatiation of price‚ Number of firms in the industry). 6. Equilibrium price helps the seller to find the good price. (Equilibrium price is the intercept
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processes and performances ” with reference to a business organization of your choice and using macro environments factors only‚ comment on the validity of this statement.(25) INTRODUCTION Lancaster (2011) defines the macro environment as ’those global elements over which the organization has no control over but which affect the organization’s ability to serve its customers profitably.’ There are six major macro environment forces: cultural‚ demographic‚ economic‚ natural‚ political‚ and technological
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The Gross Domestic Product (GDP) The Gross Domestic Product (GDP) of a country is commonly defined as the total market value of all final goods and services produced in a country in a given year. The fact that it is measured regularly and quite consistently in practically all countries of the world allows a direct comparison of the standard of living in individual countries. The frequent measuring also makes it possible to quickly recognize changing trends. For example‚ it is used to
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Introduction: Solubility equilibrium refers to the dissolution of a compound in water. Specifically‚ the degree to which a compound is soluble (Tro‚ 739). This can be measured using the expression Ksp = [Mb+]a[Xa-]b‚ in which Ksp represents the solubility product constant (Thorne‚ 90). This constant is important because it does not change at a given temperature‚ regardless of the solution a compound is in; a smaller constant would indicate lower overall solubility. It is important to note that
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understanding of CFSTD‚ a strategic management analysis will be completed. This goal will be achieved by completing the following: 1. an analysis of CFSTD’s external and internal situation; 2. an evaluation of CFSTD by using Porter’s Five Forces model‚ and; 3. an analysis of CFSTD’s main competition. Based on this assessment‚ strategic objectives will be identified and recommended. External Situation As presented by Grant (2007)‚ macroenvironmental factors are beyond a firm’s control
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Memory- Task 1 Evaluate the usefulness of the three models of memory (multi-store model‚ working memory model and the levels of processing model) and discuss practical implications of memory research. Atkinson and Shiffrin ’s Multi- store Model of Memory (1968) hypothesises that there are three stores for memory; Sensory memory‚ short term memory (STM) and long term memory (LTM). The theory states that a memory passes through each of the stores and that the importance of the memory determines which
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Macro-Environmental Factors Vietnam is a peninsula‚ which located in the Southeast Asia monsoon zone. Its long narrow territory stretches 1700km from north to south and in the center a mere 50km from east to west‚ the territory looks like a dragon stand at east of the Indo-Chinese peninsula. The coastline‚ which extends for 3260km‚ has fine beaches and archipelagos. It not only has beautiful landscape attracts countless tourists and also can get rich seafood‚ provided favorable conditions for raw
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The main goal of the market equilibrium is to get match the common intention of buyer and seller in the market. According to McConnell‚ the market equilibrium is the base point in which the supply and demand of the product quantity (McConnell‚ 2009). The equilibrium process play role for the buyer and seller agreement and confidence in each other. The process of equilibrium has impact of the following facts • Equilibrium price and quantity of products. • Changes and shift in demands of the products
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Mundell -Fleming Model The Mundell–Fleming model‚ also known as the IS-LM-BP model‚ is an economic model first set forth (independently) by Robert Mundell and Marcus Fleming The model is an extension of the IS-LM model. Whereas the traditional IS-LM Model deals with a closed economy‚ the Mundell–Fleming model describes an open economy. The Mundell-Fleming model portrays the short-run relationship between an economy’s nominal exchange rate‚ interest rate‚ and output (in contrast to the closed-economy
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