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You are an economic advisor to the government of China in 2008. The country has a current account surplus and is facing gathering inflationary pressures. The current account surplus is large, in excess of 9% of GDP. Additionally, China currently provides a rather low level of government services to its people. China’s government would like to attract workers from the rural countryside into manufacturing employment and would prefer to soften any negative impact of their policy package on urban employment.
q.assume firm ys production function is given by the following cobb douglas equation q 0.5 x l0.6 x k0.5 where l
Discuss the strategy of your organization according to the specificities of your business environment - Explain how your organization can achieve significant cost savings and marketing benefits through the use of the internet technology.
The Automotive Supply Company has a small plant that produces speedometers exclusively. Its annual fixed costs are $30,000, and its variable costs are $10/unit. It can sell a speedometer for $25. How many speedometers must the company sell to break e..
When analyzing the housing market, the supply curve
Assume the return on a 1 year domestic bank CD equals 3%. The return on a 1 year European bank CD equals 5%. Assume there is no default risk and no other transactions to prevent exchange rate risk. If the euro is expected to depreciate by 4%, a saver..
q. a pharmaceutical firm faces the following monthly demands in the u.s. and mexican markets for one of its patented
Provide reasons to explain what government would have to do to keep the unemployment rate at 3 percent."
If the federal funds rate is set by the Taylor rule and the output gap increases by 5 percentage? points, everything else remaining? unchanged, the federal funds rate should? ________. If the value of a government minus−taxation multiplier is? 1.8, w..
Suppose quantity demanded for the good rises by 10 units at every possible price while at the same time quantity supplied falls by 5 units at every possible price (with the exception that quantity supplied cannot drop below zero units at any price..
If the annual growth rate of the United States is 3%, how long will it take for the GDP to double? If the annual growth rate of China is 8%, how long will it take for the GDP to double? Will China grow fast enough to out produce the United States if ..
Acme Inc., needs to expand their facilities to accommodate a new production, line, The investment is $ 1 million dollar, and 80% is financed through the bank for 10 years at an annual interest of 10%. Since the company will invest 20% equity money (o..
Which of the following are positive economic statements and which are normative? Explain. a) Higher gasoline prices cause the quantity of gasoline that consumers buy to decrease. b) Everyone should enjoy open access to health care. c) A comparison of..
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