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Q. Using the GG - LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports.
Answer: Such a alter pushes LL upward and to the right. Therefore the level of economic integration at which it becomes worthwhile to join the currency rises. Generally increased variability in the product markets makes countries less willing to enter fixed exchange rate areas. This prediction assists explain why the oil price shocks after 1973 made countries unwilling to revitalize the Bretton Woods system of fixed exchange rates.
Q. Explain the difference between the following two expressions: Y = C(Y d ) + I + G + CA(EP*/P, Y d ) and Y = C + I +G + CA Answer: The first expression corresponds to a
THE SETTING Country X is blessed with large reserves of natural resources, spectacular physical landscape and a moderate climate. It is inhabited by a well educated and industrious
What does the factor proportions theory posits
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critically examine the effects of tariffs on the level of employment and income distribution.
What is Tugend''s stance toward the practice of multitasking? Point out specific phrases that reveal her attitud. How appropriate is her stance, given her subject matter?
Using examples, from the government, illustrate the significant opportunity cost.
Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land. Answer: For the reason that good 2 uses land, a f
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