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Question: Assume that the value of the currency of country J rises by 10% one year. Its price elasticity of imports is -0.6 and its price elasticity of exports is -0.7. Imports of raw materials and parts account for 30% of the total cost of imports. Trace the J-curve effect for this country, assuming no repercussion effect. If exports account for 20% of its GDP and imports account for 15%, and a 1% change in the current account balance changes the value of the currency by 2%, how much would the currency rise or fall in the following year?
What other variables do you think should be included in the wage determination model? How would that change the models discussed in the text?
Suppose you have the following demand function for the good x: x* = 80(py/px) - 0.5I. Are goods x and y complements or substitutes? How do you know?. Does good x demand satisfy the first law of demand? Why or why not?
Examine Apples current position on the companys ethical and social responsibilities, and determine whether or not the company has met these responsibilities.
Suppose there is only one input to a production process. Is each of the conditions below possible? If so, describe a real-world scenario that would fit the conditions, and draw a production function that reflects this scenario. If not, explain ..
Explain why excise taxes are more effective at raising tax revenues when applied to products with price inelastic demand versus ones with price elastic demand. Under what conditions would it be possible for tax revenues to decline with higher exci..
What trade barriers were in place during that decade?
The manager defends this decision because, he says, his division has been providing the bulk of the profits for the company. Division J is smaller, and its manager syays that it is time to make the divisions more even in size.
Plot the in?ation rate for each country against time and From the given data, compute the in?ation rate for each country.
Define moral hazard in a general way and then provide a more specific definition of moral hazard in an insurance market.
Suppose the economy is in a deflationary gap. Which of the following public policies would help bring the economy towards potential GDP?
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following 1 loan balances and APRs: Card 1, $4,500, 19%; Card 2, $5,700, 23%; and Card 3, $3,200, 15%. Interest..
For the next 3 questions, assume that there is a $8 per unit excise tax levied on the consumers of the product. C) What price will buyers pay after the tax is imposed D) What is the deadweight loss created by the tax E) What is the quantity of the go..
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