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Two small open economies, Fixed and Flex, can be described by the Mundell-Fleming model. The countries are otherwise identical except that Fixed maintains a fixed exchange rate, while Flex maintains a flexible exchange-rate regime. The governments of both countries increase spending by the same amount. Compare what happens in the two countries to:
a) the exchange rate
b) equilibrium output
c) net exports
Why do you think macroeconomists focus on just a few key statistics when trying to understand the health also trajectory of an economy.
Name 5 stylized facts about the business cycle.2. Rank order these three ideas from "most optimistic about how a temporary tax raises consumer spending" to "least optimistic" about the same, and explain.
What criteria would you apply to determine where such a policy is or is not successful. Judging from your own stated criteria, was Japan's exercise successful.
Elucidate how which any two pure strategy equilibria of a zero-sum game are interchangeable also equivalent.
suppose there are two diners. What will they order (at a Nash equilibrium)? b)suppose there are four diners. What will they order (at a Nash equilibrium)?
q1. when the price of ford pickup trucks rises from 18000 to 19000 the quantity of chevy trucks demanded increases from
If we had efficiency in the duopoly, what would the market quantity and price be? How does this compare to your answer?
The moral hazard is the degree of risk that the insurance company is taking in order to provide coverage on the individual.
Clear Channel, an owner of radio stations with the Top 40 format, recently bought rock concert promoter Live Nation. How would this affect prices for concert tickets or rates for radio programming?
What are the opportunity costs of coffee for H and F?
Describe how the readings and journalling activities influenced your views on workplace ethics and corporate social responsibility. Did you have a shift in your perspective?
The demand function is given by p(y) = 140 - y/3. What is the level of output that will maximize profit?
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