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A) Explain Purchasing Power (PPP). What is the differences between Absolute PPP and Relative PPP? Why does PPP not hold in reality?
B)Explain what it meant by liquidity trap.Use the interest parity condition to show how the exchange rate is determined in such a situation. What can monetary policy so in such a situation?
Assume that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0.
There be surplus supply or surplus demand. What would be the quantity of surplus demand or surplus demand.
Illustrate what technology is used to catch them. What's wrong with America's economy, and is America's economic problem short term or long term.
Assume the government imposed a minimum price of $7 in the schedule of exercise 3. What would occur. Illustrate.
Using above demanded schedule, find out the elasticity of demand for each price change. (Example: when price changes from $5 to $10, quantity demanded changes from 1000 to 800 oz., so the elasticity of demand, by using average values, is 1/3 or 0...
Illustrate what is the economic growth rate equal to. Write down your math calculations. Show to 6 decimal points.
Predict what will happen to interest rates on a corporation's bonds if the federal government guarantees today that it will pay creditors if the corporation goes bankrupt in the future.
Find an article in a business journal and 1st summarize the facts presented in the article and then relate these facts to some microeconomics/macroeconomic concept that you discovered in the reading.
Elucidate is the fiscal policy expansionary or contractionary.
The Bretton Woods system and institutions setup after World War II and the U.S. dollar as a reserve currency
A firm hires four workers and rents 16 acres of land for a season. It produces 150,000 bushels of crop. If it had doubled its land and labor,production would have been 335,000 bushels. Does it have constant, decreasing , or increasing returns to s..
Assume the government mandates that all firms over 50 employees must provide an increased level of health care benefits. Could you please describe what effect this will have on the aggregate supply curve.
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