“Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons in support of your answer.

Question

In the case of classical economics, an increase in the nominal money stock causes

Answer 1

Amita is employed in the formal sector due to the following reasons:
The company's workforce exceeds 10 employees, meeting the criteria for a formal establishment. Employees in the formal sector are entitled to social security benefits and operate under statutory regulations.

List-I		List-II
A	Money supply is exogenously given.	I	Post-Keynesian school
B	Money supply is demand driven and credit led.	II	Say’s law
C	Rational expectation.	III	Monetarism
D	Supply creates its own demand	IV	Neo-classical school

“Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons in support of your answer.

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Solution and Explanation

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