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Q. In the standard Keynesian framework in Open Economy Macroeconomics, the supply is assumed to be perfectly elastic and the condition required for stability of of equilibrium is the Marshall-Lerner condition. When we drop the assumption of perfectly elastic supply, the supply curve of imports becomes positively sloped and the condition for stability of equilibrium is Bickerdicke-Robinson-Meztler condition. Explain the Positively sloped Supply of imports and negatively sloping demand for imports (measuring foreign price on vertical axis and imports on horizontal axis), why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic?
The short-run and long-run effects of this change for the levels of per-capita output, and the growth rates of (total) output and per-capita output.
Show how the transaction would have been recorded in the German balance of payments accounts. What was the net effect on the German balance of payments.
The annual operating and maintenance expenses are estimated to be $1,000. If Convington's MARR is 15%, how many years will it take before this machine becomes profitable.
The election of a new Congress causes consumer confidence to soar as expectations of future economic growth are solid.
Profits associated with polluting for Friedman Inc. are π = 40Q - 2Q2, where Q = pollution emitted (in tons), and profits are measured in dollars.
Based on the IRS actuarial table, Mario has a life expectancy of 20 years. If Mario receives 12 monthly payments of $1000 the first year, how much taxable income must he report on his tax return.
Recent survey of high school students, it was found that the average amount of money spent on entertainment each week. Values are representative of all high school students.
Briefly discuss the impact of rational self-interest on each of the following decisions. Whether to attend college full time or enter the workforce full time.
In a typical day the store sells some of each type of cola, which suggests that Major League Baseball has adopted FOA because it fears that regular binding arbitration is addictive.
New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.
If the marginal cost of planting and harvesting an acre is $7000 per acre for each of the five acres, how many acres should the farmer plant and harvest.
As control variables, Quinn's data also includes income the individual earned in the month the data was collected, and the amount that it rained in the month the data was collected.
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