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Britain belongs to the EU, but it has not yet adopted the euro, and fierce debate rages over the issue.
a. Find macro data on the British economy's performance since 1998 (inflation, unemployment, real GDP growth) and compare these with euro zone data.
b. What were nominal interest rates in Britain and the euro zone after 1998? How would Britain have fared if the ECB had been setting Britain's nominal interest rate at the euro zone level and the pound sterling's euro exchange rate had been fixed?
A local hardware store is trying to decide whether to stay open. They have found that their industry is extremely competitive and profits have shrunk considerably. Knowing that you have taken an economics course the owners have asked for your opin..
Keynesian Economics: Suppose the following about the economy of the United States: Government spending = 660, planned investment (Ip) = 215, autonomous consumption is 200, net exports is 100 and taxes are 100. In addition, for each additional $1 o..
Suppose the government decides to decrease spending and increase taxes in an attempt to decrease its deficit. Is it possible for the Fed to ease the macroeconomic effects of the spending and tax changes? Explain
In particular, according to the efficiency wage theory thus outlined, how would an employer determine the proper wage level to offer their employees?
the company provides the broker with an infrastructure, such as clerical support, phone services, and office space, and especially for new brokers, a base wage.
Why might the existing firms in a cartelized industry prefer to be regulated by the government? What is the problem with common property resources?
The supply of loanable funds curve (LFS) curve is given by the equation r = 2 + (1/300) LFS where LFS is the quantity of loanable funds supplied. Calculate the initial value of government savings,
Elucidate how might raise the chance that the employee would retire earlier as compared with the situation where the employee had to pay for his own health insurance.
Estimate possible macroeconomic arguments might President Obama use to defend his $862 billion fiscal stimulus package as a part of his economic recovery plans?
What price and quantity will the monopolist produce at if marginal cost is a constant$4 ? Compute the dead weight loss from having the monopolist produce, rather than the perfect competitor
The Hormsbury Corporation produces calculators at its factory. Wages are $12 per hour and calculator making equipment (a computer-controlled machine) rents for $4 per hour
Huntington suggests that the emerging global economy will increasingly be faced with violent clashes between civilizations. Elucidate what Huntington means by the term civilization and why such clashes may be expected.
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