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Briefly explain the theory of reciprocal demand. How does it provide a meaningful explanation of the international term of trade?
Elucidate how each of the following people would talk about scarcity and trade-offs. The President of the United States and the leader of a developing nation.
clearly show on youre graph the old equlibrium price and quantity. Can you tell for certain whether the new equlibrium price will be higher or lower than the old equilibrium price?briefly explain.
which limits amount of goods they can purchase. Preference Consumers always choose goods which give most pleasure. So how do we measure about pleasure.
As the economy emerged from the most recent recession, household income rose by 6%. Over the same period, total expenditures on beef increased by 3%. Assuming that all other economic variables were held constant,
Illustrate what is the opportunity cost (in civilian output) of a defense buildup that raises military spending
Illustrate what is the fed funds rate in the banking system. Explicates howthe Fed manipulates this rate in order to achieve macroeconomic objectives.
If GDP increases in nominal terms from $600 billion in 1994 to $663 billion in 1996 and the price index (1992 = 100) rises from 120 to 130, how much real growth (in 1992 dollars) in GDP occurred between 1994 and 1996?
Illustrate how do these two relate to each other in the Circular Flow Economy and to the Government and Foreign Sector components? How does all this fit on a Wheel of Income.
The purpose of this problem is to study the sacrifice ratio. Assume that initially actual and natural real GDP both equal 11,000 and that the rate of inflation is 3.5 percent.
Suppose that a certain country has an MPC of 0.9 and a real GDP of $500 billion. If its investment spending decreases by $12 billion, what will be its new level of real GDP?
Changes in disposable income affect government purchases and the government purchase function. How do changes in net taxes affect the consumption function.
q1. explain how does an increase in transport costs change the gains from trade in melitzs 2003 model? are the effects
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