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European vacations are getting cheaper than they have been in years. With the dollar gaining 14.6 percent on the euro and 12.1 percent on the British pound over the past 12 months, large numbers of U.S. tourists are already booking vacations to Europe for the coming year. The stronger dollar means prices on everything from French hotel rooms to Italian wine are falling for U.S. travelers. Airline fares, too, are easing, as more trans-Atlantic flights are scheduled and fuel costs start to come down. As a result travel agents are seeing a sharp rise in advance bookings to Britain and the Conti- nent. AAA Travel, a national agency, says its advance bookings to Europe are up 116 percent over last year. (Italy’s bookings are up 236 percent, England’s are 79 percent higher and Spain’s have climbed 170 percent.)
How much cheaper, in U.S. dollars, did a 100- euro-per-night Paris hotel become in 2005, according to the News Wire on page 359?
Suppose the government decreases taxes by 20 percent. Describe the effects to the equilibrium price level and GDP. Make sure to address consumption, disposable income, and aggregate demand in your answer.
(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that _____ has the comparative advantage for corn and _____ has the comparative advantage for watches.
Suppose that an automobile costs $30,000 in the United States and 25,000 Euros in France. Further suppose that the exchange rate is .8 (one US dollar = .8 Euros).
In class, we discussed the Macro effect of physician ratios in the United States. Compare and contrast the states with the highest and the lowest physician ratios. Explain how the standards of living change as each states ratio differs. Regarding the..
q1. as long as firms are price takers in the labour market it doesnt matter if firms are monopolists in the output
A simplified economy is based on agriculture, manufacturing, and transportation. Each unit of agricultural output requires 0.3 units of its own output, 0.5 of manufacturing, and 0.2 unit of transportation output. There is demand for 95 units of agric..
full over the last month, are you optimizing. Illustrate wow about if it is 75% full at 9 am.
1. explain why work done at home is not incorporated however housing services that are also done at home are
Graph all three curves. What is the relationship between the marginal-cost curve and the average total cost curve
Cars are lasting longer. The expected number of miles traveled over a vehicle's life has risen to 180,000 miles in 2001 from 128,000 in 1977. However, new car buyers tend to keep their cars about the same length of time before trading them in. Using ..
Eastman Kodak filed for a bankruptcy in January 2012. Using our analytical framework of nine areas of interest introduced in class explain the main causes of the company's misfortunes.
If a binding minimum wage were now imposed
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