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a. In 1917, an explosion in the harbour killed 4 percent of the population of Halifax and injured around 20 percent of the population, including leaving 2 percent of the population with serious eye damage or even blindness from the flying glass. Assuming a closed economy, use an IS-LM-FE diagram and all other relevant diagrams to show what would happen if this decreased the working age population (ignore any possible impact on future wealth or capital). Show and discuss what happens to output, the real interest rate, the price level and real wages.
b. Assuming a flexible exchange rate and that the domestic interest rate does not deviate from the foreign interest rate, use an IS-LM-FE diagram and all other relevant diagrams to show what would happen if the government increases spending (ignore any possible impact on future wealth). Show and discuss what happens to output, the price level, real wages, net exports, the nominal exchange rate and the real exchange rate.
Assume that Omar's marginal utility for cups of coffee is constant at 1.5 utils every cup no matter Elucidate how many cups he drinks.
In addition to the previous question, assume 2 probability of risk lines pertaining to two different individuals. Justise' probability of risk line is higher than Hasan's probability of risk line. What can you conclude? If the medical quantity demand..
"The theory of comparative advantage (and the associated projected economic gains from free trade) is a well-known economic theory, but what happens in the real world is closer to the opposite. If, as the result of free trade, some American workers l..
For an industry with MAC = 500-2E and MDC = 3E: Calculate the socially efficient tax rate. What is the total compliance cost to the industry if the socially efficient tax is charged? What are the net social benefits of the socially efficient tax?
Big pharmaceutical companies are oligopolies and as such their strategic decisions are influenced by the rival's actions. Describe the pros and cons of the oligopolistic firms in the healthcare sectors
Provide the time series plot. Identify the time series characteristics. Explain. Assuming no cyclical pattern, provide the best regression model for each data series. Run the regression model using E-views. Explain the validity of the model.
Suppose there are two countries in the world, U.S. and Japan. If the Fed wants to fix the exchange rate, the Fed can buy U.S. dollar/sell Japanese yen to prevent dollar from depreciating in the foreign exchange market. Therefore, if the Fed wants ..
What is the accounting profit that Fred would get in his venture? What is the economic profit that Fred would get in his venture? Would you recommend Fred go ahead with his venture? Why?
What are the three factors that determine the behavior and ultimate value of people in an organization? From a manager’s perspective, which is the most important factor of the three
Suppose risk-free interest rate is 0.05. If there is one-year 5% coupon bonds with a face value of $100 and 10% default risk, show that the yield to maturity of this bond is higher than risk-free interest rate. Assume that if the bond defaults, th..
Elucidate how does N the number of firms in the market, affect each firms Demand curve. Explain why.
Clearly summarize the reason oil prices are plummeting. Analyze using economic concepts of supply and demand. Use additional resources to back up your argument.
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