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Greece is part of the “Eurozone” – 16 countries that each use the euro (€) as its currency. The European Central Bank (ECB) sets monetary policy for the Eurozone. (You can think of the ECB as “Europe’s Fed.”) One monetary policy applies to all 16 countries of the Eurozone. The Greek legislature approved “austerity measures”: • increased taxes • reduced pensions (the equivalent of our Social Security), and • reduced pay for government workers. The austerity measures described above will increase Greek unemployment. Explain why? If the ECB wanted to use interest rates to help Greece’s economy following imposition of the austerity measures, should the ECB increase interest rates or decrease interest rates? Why? Explain fully
The vehicle of choice most often for a U.S. investor who wishes to exercise a measure of control over its foreign investment is a(n): a. interlocking directorate. b. investment trust. c. joint venture. d. all of the above.
Suppose V=$0, what is Jim's labor supply function now. Draw his labor supply curve. Illustrate what happened to his wage and substitution effects.
Robinson's demand for pineapples is given as Q = 40 - 4P while Friday's is Q = 20 - P. Supply is given as Qs = 6 + P, and Pc = $1. Find equilibrium price, equilibrium quantity, and the amounts Robinson and Friday will both end up consuming.
Find the demand for L and R. Now assume that the price of right shoes increases. What will be the substitution eect from this price change? Explain.
Clearly evalute at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
Incomplete information frequently lowers the average quality of products and services exchanged in markets. This phenomenon, at times called the "lemons problem," Why efficiency in markets with incomplete information present lower than in those with..
Assume that the government reduces taxes (T). Show graphically, how this Tax cut affects the Keynesian Cross and the equilibrium income. Label your graph properly and provide additional explanations.
What are the advantages and disadvantages to a two-stage approach to negotians? Why do most negotiations for globl environmental regimes end up taking a two-stage approach?
Jim Bradley is the director of the Bradley bakery. He has collected data on his store for the past year.
A residential rental property is acquired during the first month of the taxable year, at a total cost (including transaction costs) of $1,200,000.
Elucidate what happens to real GDP when it is initially to the right of the equilibrium point and why. Indicate two public policies which would be appropriate for addressing this situation.
calculate the breakeven cost of the above air-conditioner with condenser using evaporative cooling if the MARR is 8% p.a.
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