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You are the chief economic adviser in a small open economy with a floating-exchange-rate system. Your boss, the president of the country, wishes to increase the level of output in the short run in order to win re-election.
a) Do you recommend using expansionary or contractionary, monetary or fiscal policy? (Choose one) Use the Mundell-Fleming model to illustrate graphically your proposed policy and explain why you chose fiscal or monetary policy.
b) What if your country has a fixed exchange rate, what is the only policy mix that can be implemented? Explain why and show in Mundell model.
Why did the global economy fail to self-adjust during the Great Depression Specifically, why didn't sales and employment respond to the declining prices and wages as classical economists would predict
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What role do you think price levels play on consumption and AD? What would be the effects of increased saving and decreased consumption on the aggregate demand?
chens car is worth 5000. but she is sometimes careless and leaves the door open and the keys in the ignition.
A firm has a long-run cost function, C(q) = 4q^2 + 4. In the long run, this firm will supply a positive amount of output, as long as the price is greater than what?
The benefits of decentralization, denoted B, = 3D and the costs of decentralization, denoted, C = 2D + 2D2. What is the optimal level of decentralization (D)? Explain
Monthly deposits are made into an account paying 6% nominal interest compounded monthly. If the objective of these deposits is to accumulate $100,000 by the end of the 5th yr, what is the amount of each deposit?
How do the income and the substitution effects determine the slope of the labor supply curve?
wyandotte chemical company sells various chemicals to the automobile industry. wyandotte currently sells 30000 gallons
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at a large institution of higher learning the demand for football tickets at each game is 100000 -6000p. if the
Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as ..
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