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Use the Mundell-Fleming model to predict what would happen to aggregate income, the exchange rate, and the trade balance under both floating and fixed exchange rates in response to each of hte following shocks. Be sure to include an appropriate graph in your answer.
a) A fall in consumer confidence about the future induces consumers to spend less and save more.
b) The introduction of a stylish line of Toyotas makes more consumers prefer foreign cars over domestic cars.
c) The introduction of automatic teller machines reduces the demand for money.
Pretend that you are an editorialist, and write an editorial considering whether or not you believe that monopolies should be illegal and defend your argument using pertinent economic theory.
Discuss the meaning of the regression coefficient of the independent variable(s) and how it could be used to estimate the elasticities of each of these variables. Discuss how managers use the elasticities measurements to make managerial decisions.
Imagine a local government is considering opening a public swimming pool in a residential neighborhood
suppose you are a painter and the price of a gallon of paint increases from 3.00 a gallon to 3.50 a gallon. your usage
The goal of studying and recording the unemployment rate is to learn something about the state of the economy. Explain why each of the following makes the unemployment rate a better or worse indicator of how healthy the economy is.
If the price in this market were $160, explain why this would not be the market equilibrium price and find the equilibrium price and equilibrium quantity exchanged for this market.
the web site amazon.com once aimed to be the worlds largest bookseller. now the company offers a wide range of products
The response conforms to appropriate requirements of the specific format,cover page included, with student name, student number, and tutorial time/room number clearly stated.
During the job interview, the Vice President understood that you had received rigorous training in managerial economics, and you were able to choose some appropriate methods to predict the market movement.
Use AD-AS diagrams to explain the short-run and long-run effects of each of the following events on output and the price level. Assume that policymakers take no action. A severe earthquake damages factories along the west coast.
Calculate the unemployment and labour force participation rates in 2014 and in 2015 and what challenges would face the Greek government if they wanted to undertake fiscal policy to address the problems described in b?
Suppose that a firm's production function is given by the Cobb-Douglas function q= (K^a)(L^ß) and that the firm can purchase all the K and L it wants in competitive input markets at rental rates v and w, respectively.
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