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1. In recent weeks markets around the world have been rattled by signs of a slowdown in growth of the Chinese economy, together with a massive sell–off in its stock market… plus a massive default by Greece on its debts to the IMF , the ECB and on its government bonds which will be averted only if it agrees to harsh budget austerity measures imposed by Germany and the rest of the European Union…In the process, the value of the $ has risen against the Euro, the Yuan and many other currencies.
Given the current condition of the US economy, do you think US policy makers would prefer to see the $ rise in value, decline in value or stay at its current value? Discuss the advantages and disadvantages to the US economy at this time of a stronger vs. a weaker $. Frame your answer in terms of the current Aggregate Demand and Aggregate Supply situation of the US economy.
Draw an AS/AD diagram to illustrate your answer. Clearly label axes and the current position of AS, & AD relative to full employment RGDP….also indicate any shifts that would occur if the exchange rate of the $ rose sharply against other major currencies
Which statement most accurately captures the state of money today?
A college raises its annual tuition from $28,000 to $30,000 and its student enrolment falls from 4,877 to 4,715. Compute the price elasticity of demand. Is demand elastic or inelastic? Explain and show your work.
Using the utility maximization rule as your point of reference elucidate the income also substitution effects of an increase in the price of a product with no change in the other product.
Paper currency is the most easily recognized form of money. How well does paper currency serve the functions of money if we have an inflation rate of 50-percent per year?
Compute the (point) cost elasticity of demand when cost is $700. Is demand elastic or inelastic.
Explain briefly the system of system of the Balance of Payments Accounting for a country, including an explanation of the current account, the capital account, and the financial account.
Distinguish between the following terms- Direct subsidies vs. indirect subsidies. Auction method quota allocation vs. Rent-seeking method quota allocation. Safeguard import Tariff vs. Import tariff.
How to define the relevant market to conduct the merger analysis? Explain briefly what is the Hypothetical Monopolist Test. You should discuss what the market definition is and how to include market participants of a relevant market. Explain what are..
Illustrate what inconsistent other than price appear to have the biggest impact on the demand products. How much influence does the company have over these inconsistent.
What is the -maximing combination of labor and capital the firm should use? What is the resulting level of output? What is the economic profit? Is this the least costly way of of producing the profit-maximizing output?
q1. immediately following the attack on the united states on september 11 2001 the stock plunged and many observers
Write down a formula that express the marginal product of labor in the short run as a function of the amount of labor used.
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