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Q. As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe. Using all the appropriate diagrams, your analysis must describe the complete dynamic behavior of the American and European money markets, as well as the foreign exchange market. To perform this task, you must assume that prices are sticky: fixed in short-run and flexible in long-run. The scenarios are:
a) A temporary restrictive monetary policy in United States.b) A permanent restrictive monetary policy in Europe.
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
The government wants to increase real GDP demanded to $15 trillion at the given price level
A machine used to cereal boxes dispenses, on the average, ounces per box. What is the largest value.
Bud has very limited store space and has decided to limit his product line to one brand of beer, choosing to forego the snack food lines that normally accompany his business.
Imagine that you were the president of an emerging country that is trying to reduce the number of its imports
Calculate gross national product and net national product
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Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
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The equilibrium quantity increase or decrease depends on Demand
The price elasticity of demand for Royal Crown Cola is equal to the price elasticity of demand for soft drinks in general It is invalid to make inter product elasticity comparison
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