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Since under a fixed exchange rate system the exchange rate does not change, does this mean that the BP curve never shifts? Why or why not? If it in fact does shift, what effects do such movements have on the equilibrium interest rate and equilibrium income if financial capital is imperfectly mobile? Briefly explain.
q1. assume australias unemployment rate began to rise and the government passed an investment tax credit to help
The classical political economists shared, to a large extent, a vision of an emerging social system. Smith referred to this as the “society of perfect liberty” while Marx called it the “capitalist mode of production.” What were the central characteri..
In what ways have the problems caused by the recent economic crisis affected business firms? In what ways have these problems affected employees and individuals?
A petroleum refining and recovery service company, Cowboy Enterprises, purchased $13,790 worth of equipment for reconditioning fuels in its storage tanks. The equipment has a functional life of 14 years and a salvage value of 5% of the purchased pric..
Bob's utility function is UB = (hB - 1)2sB where hB and sB are his consumption of hamburgers and salads respectively. Let p be the price of hamburgers measured in salads. Alice is endowed with one salad and two hamburgers. Bob is endowed with six sal..
Find out QD and QS when cost of good X is $12.00. Is re a surplus or shortage. Illustrate what should happen to cost of Good X to drive it to Equilibrium.
A winery estimates that the demand for its fine Owner's Select, has an income elasticity of 2, where income refers to the income per capita of its customer base.
Would a dynamic approach to taxation be more likely to lead to economic growth than the static approach in a country with a falling tax base? What about in a country with a growing tax base?
You are the manager of a large crude-oil refinery. As part of the refining process, a certain heat exchanger must be replaced every year. The replacement and downtime cost in the first year is $180,000. how much could you afford to spend for a higher..
Assume that the supply of labor to some industry is inelastic at Es, and that the industry has a standard, negatively sloped labor-demand curve. Depict the equilibrium. Now suppose that the government mandates that every employer must pay each worker..
a) Assume that a business firm sells a product at the price of Rs 500. The firm has decided to reduce the price of the product to Rs 400. Consequently, the demand for the product is raised from 20,000 units to 25,000 units. Calculate the price elasti..
q.assume that the economy can be described by the following 3 equationsut-ut-1-0.4gyt-5 okuns lawpit-pit-1-ut-4
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