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Problem
Suppose that there is an increase in national income in a country. Under a fixed exchange rate system, according to the monetary approach, will the country's balance of payments (official reserve transactions balance) move toward surplus or toward deficit? Why? How would you modify your explanation (though not your conclusion) if you were using the portfolio balance approach in a fixed exchange rate context?
Illustrate what the pricing and non pricing strategies that firms rely on to compete in monopolistic competition and oligopoly market models.
Consider the market for Canadian maple syrup. The demand and supply functions for Canadian maplesyrup are given by:
Suppose that imports depend not only on potential GDP, but on short-run GDP as well. That is, the imports equation can be re-written to include a new parameter n-bar that relates imports to short-run output. Derive the new IS curve.
You are a designer of children's clothing and decide to open a children's clothing store. You find a nice space in a local mall and agree to sign a one-year lease agreement that runs from September 1 to August 31.
Assuming that over the last three years the equilibrium quantity of wheat has risen while over the same period the equilibrium price has not changed, which of the following is the most likely explanation of these facts?
1. following kydland and prescott 1977 assume that the monetary authority chooses its inflationary policy in order to
It is sometimes said that declining fertility was a major contributor to sustained economic growth among the Asian tigers. Do you agree with this view? Use the microeconomic theory of fertility to argue that it was a rise in wages, spectacular g..
transactions analysis and trail balance make t-accounts for the following accounts that appear in the general ledger of
Using the following demand schedule and a graph sheet plot the demand and supply curves? Also, show the market equilibrium point on the graph. And what is the market equilibrium quantity?
Find an article from the media (internet, newspapers, magazines, etc.) on a current event that addresses an economic concept (e.g., consumption, saving, investment, real GDP, marginal propensity to consume, income multiplier, etc.). Write a one t..
What would happen to each firm's current profits if firm 1 reduced its price to $6 while firm 2 continued to charge $8?
What is "Fracking"? What are the "costs" (including social costs and externalities) of Fracking, and what are the benefits? Do you think that government regulations are needed to ensure that Fracking only happens if the benefits exceed the costs?
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