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Now suppose the world relative price of a cars is Pc/Ptv=1. A) In what good will each country specialize? Briefly explain why. B) Graph the new world price line for each country in the figures in problem 4, and ass a new indifference curve (U2) for each country in the trade equilibrium. C) Label the exports and imports for each country. How does the amount of Home exports compare to Foreign imports? D) Does each country gain from trade? Briefly explain why or why not.
Illustrate with a graph how the PPF presents a strong rationale for the plausibility of the law of supply and supply and demand graphs indicating the change in equilibrium price and quantity.
suppose the consumption function is as followsc shyshynbspnbsp a1 yd a2 wresnbsp a3ccwhere all the as the
Should price stability be the goal of monetary policy Explain your responses. Compare and contrast the impact of an unexpected shift to a more expansionary monetary policy under rational and adaptive expectations. Are the implications of the two t..
This is a challenging question and involves algebraically solving system of two equations given by AD abd AS curves. The equations for the curves are given through the following:
Individual investors lost millions and the NASDAQ (the stock exchange for most Internet companies) came tumbling down. What happened? Why did it happen? What could have been done to stop this unsafe surge in valuation?
Explain how if at all each of the following events effects the location of a country’s production possibilities curve
Which of the following is most commonly used to monitor short-run changes in economic activity - If expected inflation is constant, then when the nominal interest rate increases, the real interest rate.
1. Which of the following is the best example of a government sanctioned monopoly? a. a public utility company. b. a k-12 public education school district. c. a newly patented drug. d. Microsoft's Windows products. e. All are very good examples of su..
your supervisor has been asked many questions about how the economy works and why the idea of limited resources is such
1. i am risk avers and trying to maximize my expected value of c0.5 were c is my fortune. i have 50.000 in cash and art
what are the different types of unemployment? how do they affect the economy in terms of growth labor force and price
Explanation of how a patent is a monopoly includes benefits to the producer (patent holder) and impact on consumers and is economically correct? Explanation of what happens in the market to both producers and consumers when a patent runs out are econ..
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