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a) Explain what is mean by exchange rate overshooting and undershooting.
(b) Explain the GG, MM, and PPP lines and equilibrium in the Dornbusch model.
Give an example of a product you consume for which your marginal utility increases with the amount of your consumption
Describe how the system converges to its new equilibrium. What happens to the equilibrium wage in the long run? What happens to the equilibrium population size in the long run?
You want to buy a new car and have $5,000 available for a down payment. You can afford a monthly car payment of $400. The maximum length of loan you want to take is 5 years. Your credit rating is not so good and the best car loan you can get is for a..
At what prices is the demand elastic? In what price interval is the demand inelastic? How does revenue change from the elastic to the inelastic zone of the demand?
Has dollar appreciated or depreciated against the yen. Illustrate what was the least amount in dollars that your box lunch cost.
Executive officers within an organization will often feel compelled and tempted to emphasize short-term results—net income for the current year—over long-term
Explain what happen if all workers and jobs were identical, there would be just one wage rate, assuming perfect information and costless mobility.
You are considering buying car insurance for the coming two years. Whether or not you buy insurance, you have the following probability distribution over the car accident damages for each year (the probability of having an accident is independent acr..
Should food and beverage advertising to children be banned? What about for other types of products as well? Is it unethical for food companies to target their ads towards children? In a period when most parents are working, how are children to be pro..
Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time. However, other vending machines dispense only one item (the item you bought)...
Illustrate what happen if her actual disposable income is $16,000, her level of consumption or saving will be.
Find outing relate to economist's traditional focus on Illustrate what people do, rather than Illustrate what they say they will do.
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