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Explain the concept of deflationary gap. Explain any two measures by which a Central Bank can attempt to reduce the gap.
Assume that 2-people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and increase chickens.
In the same context of Q6 above, briefly explain why the prices of Short Term US treasury securities are still high enough to keep the interest low enough despite the fact that the US Bond rating has been downgraded from AAA status to AA+ by S&P i..
Suppose that more companies receive permission to drill foroil in Alaska and U.S.-controlled waters. In addition, assume thatthe popularity of SUV's declines in favor ofsmaller, more fuel efficient automobiles.
Discuss why do many economists believe that the market system is the most efficient economic system for allocating resources?
What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.
A monopolist with two plants operates with a marginal revenue of 500-4Q and marginal expenses of 4Q for plant one and 2Q for plant 2.
In some developing countries, you can see modern airports, huge government buildings, and new highway system around the capital city. However, those countries' real GDP are still low. Would you provide the possible reason to explain why
The market for chicken sandwich, considered a normal good, is in equilibrium. Analyze the effect of the following events on equilibrium price and equilibrium quantity of chicken sandwich.
Who demands U.S. dollar Who supplies U.S. dollar When we purchase German products, does our demand for euro go up or down What are freely floating exchange rates all about, and how do they work
Discuss the distribution of income that results from the United States' brand of free market capitalism. How does the existing distribution of income compare to the distribution that would, in your opinion, be desirable
In contrast to the U.S., Japan has realized continuous current account surpluses. What could be the main causes for these surpluses? Is it desirable to have continuous current account surpluses?
For each of the following state a) if the demand or supply curve will shift left or right, (b) the effect on the exchange rate, and (c) if it is a long, medium, or short run effect based on the supply of and demand for the Canadian dollar by the U.S...
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