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2 products in an economy

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Reference no: EM139136

Q1. A war breaks out which destroys industry facilities including factories, machine etc. Explain how Explain how this event affects macro variables?

Q2. Explain how do I draw a production possibilities curve for 2 products in an economy if a natural disaster affects one but not the other?

Q3. Illustrate what is the slope of the leakage schedule? Also, if a bank has $5 in vault cash plus $200 in liabilities with a required reserved ratio of .20 and a desired excess reserve ratio of .05 is the $5 in vault cash factored into the loan the bank will give out or just left alone as reserves?

Reference no: EM139136

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