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Suppose that the developing countries like China and India start promoting consumption, and as a result there is sudden decline in world savings.
a. What happens to the investment in a small open economy like Singapore?
b. What happens to the trade balance of Singapore?
c. What happens to the real exchange rate of Singapore?
Assume Harrison, Carla and Fred have only paintbrushes at their disposal. Illustrate what is the average labor productivity, in terms of square feet per painter-hour, for th
What is the real sector of the economy, what are the associated parity conditions, and how are they different from each other? Which one tends to hold the best? Explain why.
Think of ways in which the Government is actively involved with the purpose of changing the economy with regard to unemployment or inflation (or deflation). Do you agree that
In 1991, Congress imposed a 10 percent excise tax on the portion of the retail price of certain items that exceeded the following: $35,000 for automobiles, $150,000 for yachts
Where does market power arise from? (1) the entry of new firms to an industy in which the firms are earning large producer surplus (2)barriers to entry (3) diseconomies of sca
Diesel Locomotive are extreamley durable. The price of a new locomotive is $450,000 and if it is overhauled every 15 years at a cost of $75,000 it can be operated indifinetly.
Each month, aztec spends exactly $2 million on advertising. Illustrate what is aztec's elasticity of demand for advertising. Can you write the equation for Aztec's demand fo
Canadian Widgets makes rocker arms for car engines. The manufacturing process consists of punching blanks from raw stock, forming the rocker arm in a 5-stage progressive die,
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