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The production possibilities for the United States and Saudi Arabia are given in Problem 1. Suppose now that each country specializes in the good in which it has the comparative advantage, and the two countries trade. Also assume that for each country the value of imports must equal the value of exports. A. What is the total quantity of oil produced? What is the total quantity of cars produced? And for the United States to consume 400 million barrels of oil and 5 million cars? Cars and the United States consumes 500 million barrels of oil and 6 million cars. How many barrels of oil does the United States import? How many cars does the United States export? Suppose a car costs $10,000 on the world market. How much, then, does a barrel of oil cost on the world market?
Explain how do economists distinguish between the absolute and relative sizes of the public debt. Why is the distinction important.
We want to consider elucidate how a change in the U.S. money supply affects interest rates. On all graphs label initial equilibrium point A.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
Which of the subsequent statements would best describe the UK's population at present?
Does the aggregate demand-aggregate supply model support Bernanke's thesis.
What do you mean by macroeconomics. What role does macroeconomics play in your personal financial decisions and the decisions that your organization makes.
There is no uncertainty about the future. The consumer needs to save an amount this year that will allow her.
Which among the equation will you choose for a better demand estimation. Illustrate answer in the language of statistics.
Give an example of an event or incident that has taken place in the U.S. economy which has a major economic impact--be specific.
Find out the equilibrium level of GDP. Next find the multiplier for government purchases and fixed taxes. If full employment comes at y+1800, what are some policies that would move GDP to that level.
Illustrate how the outcome would differ if all 15.3 percent were imposed on the employee or if all 15.3 percent were imposed on the employer."
Describe the difference between Economic contraction and Economic expansion
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