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A large corporation, where you own a number of shares, recorded extraordinary profits in the last quarter. You expect to receive large dividend payments but do not receive anything. Why?
What is the impact of free trade on domestic job creation policy? Elaborate with examples. What are the impacts of outsourcing and off-shoring on trade liberalization (globalization) and economic structure?
Most macroeconomists believe it is a good thing to taxes act as automatic stabilizers also lower the size of the multiplier.
Foreign exchange rate stability is important because a decline in the value of the domestic currency will ________ consumers, and an increase in the value of the domestic currency makes domestic industries ________ competitive with competing foreign ..
Draw a Keynesian cross graph and assume that macro economy starts and ends at equilibrium. Label the initial aggregate demand line AD0, Then show what happens in the diagram when a rise in consumer wealth raises C in your diagram. What is the initial..
What are some examples of the financial crisis in Greece and the potential market problems because China's economy is fueled by construction of cities that remain unoccupied? We need to discern the financial condition of the world and look at dollars..
Assume quantity theory of money holds with constant K and Kf. Suppose Mexico wants to stabilize the exchange rate of its currency with US dollar (dollars/peso). If US is running a 5% inflation rate solely due to the increase of money supply, what is ..
Suppose SRAS is horizontal as believed by Keynesian economists and is given by P = 110 and that the aggregate demand curve is P =200-2Q. Now suppose that the SRAS shifts upward from P=110 to P = 115. What will happen to the inflation rate? What will ..
Suppose there is a five per cent increase in the prices of SUVs, salt, and rental apartments. Explain whether you think the income effect in each case would be small, large, and why.
As demand goes up, so does price. The decrease in production of other items decreases supply, and raises their price.
In the specific-factors model, an increase in the price of the manufactured good will cause:
During the past year, gasoline prices have been very volatile. One reason given for at least some of the volatility is the threat of war between Israel and Iran. More recently, there has been a report of serious fire damage to Venezuela's largest ref..
A county with 1M (M for million) population, 2% unemployment, and no in ation, voted to build a stadium and rent it to a professional baseball team. The team owner, who was not a county resident, was to pay $1M per year rent for use of the stadium an..
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