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Purchasing power parity requires that the nominal exchange rate equal the ratio of the price level in your country to the price level in the US. For each year, calculate the percentage change in the exchange rate and in the ratio of the CPI in your country to that in the US. Make a scatterplot showing the change in relative prices on the x-axis and the percentage change in the exchange rate on the y-axis. Does PPP seem to hold? If not, what are some reasons why it may not?
analyze the impact on the consumer's demand of the following three policies under the assumption that the market price does not change.
What is gross domestic product (GDP) and what is the use of it and can a country achieve a 0% unemployment rate, explain
How foreign direct investment influences the wages
In a market economy, investors have a strong incentive to undertake profitable investments. What makes an investment profitable? Do profitable investments create wealth? Why or why not? Do all investments create wealth? Discuss.
consider two firms facing the market demand curve p 100 - q where p is in unit q is total output q q1 q2 q1 is the
if contract promises were not excused because of acts of war would the clearing and settlements clients of bank of new
Obtain the demand equation for natural gas and calculate the annual change in consumer surplus
Price elasticity of demand depends on various factors. Explain each factor with the help of an example and how how producers equilibrium is achieved with isoquants and isocost curves.
a taxi company currently has 9 cabs in its fleet and its total daily cost is 4750. if a taxi company adds a tenth cab
Suppose that an industry cartel wishes to keep a new entrant out of an industry. Cartel members can conduct "predatory pricing", where the cartel lowers its price until the entrant leaves, after which it returns it price to the cartel's optimal (m..
"Output per worker is expected to increase by 10 percent during the next year. Therefore, wages can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Analyze this statement.
Suppose changes in bank regulations expand the availability of credit cards so that people need to hold less cash.a. How does this event affect the demand for money?
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