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1.What factors are important in determining the length of the imitation lag and the length of the demand lag? Explain.
2.Ignoring the mathematics, explain the operation of the Krugman model in economic terms, and indicate the principal lessons of it.
3.Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain.
4.Is the distinction between "intra-industry trade" and "inter industry trade" a useful distinction? Why or why not?
Utilize an elasticity concept to elucidate each of the following observations.
Discuss how rapid inflation can undermine money's ability to perform each of the three functions.
Market Value of the final goods and services produced in the domestic economy= $1,15,000 of which goods worth $10,000 are distributed among the Tsunami Victims. Net factor income to abroad= 4000 and the govt. is offering subsidies to the producers..
Elucidate what term do economists utilize to describe this second outcome
An increase in the dollar price of yen necessarily means a fall in yen value of dollars. Do you agree? Discuss and explain; The critical thing about exchange rates is that they provide a direct link.
Elucidate is the fiscal policy expansionary or contractionary.
Explain why is the "1 free" free to the buyer but not to society. At which point if any should the government regulate such promotions like these.
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
In 2008-2009, the nation economy retrenched in the wake of a global financial crisis. Did the globalization of capital markets contribute to this crisis.
Illustrate what should the government's role be with respect to regulating accounting firms in the wake of mismanagement and accounting irregularities.
The losers from this devaluation basically considering its limited turn-in period for the old money.
Use the production and price information in the table to calculatereal GDP for 2009, 2010, and 2011 using 2010 as thebase year.What is the growth rate of real GDP from 2009 to2010 and from 2010 to 2011?
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