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Q. 1. What factors are important in determining the length of the imitation lag and the length of the demand lag? Explain.
2. Ignoring the mathematics, explain the operation of the Krugman model in economic terms, and indicate the principal lessons of it.
3. Why is an increase in the number of varieties of a good regarded as a gain from trade? Can you think of economic disadvantages associated with greater product variety? Explain.
4. Is the distinction between "intra-industry trade" and "inter industry trade" a useful distinction? Why or why not?
Air transport for businesspeople and tourists
Specify the set of mutually beneficial allocations relative to the initial endowment and illustrate the set.
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
Explain how the U.S. economy may self-correct back to the long-run equilibrium where actual GDP equals to full GDP and there is full employment.
Calculate the price elasticity of demand for Newton's Donuts
discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets
Research where you would find the U.S. international trade policies and their history as they apply to various industries.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
By what percentage would GDP be boosted if the value of the services of stay-at-home spouses were included in GDP
As an analyst at the Treasury Department, you have been asked to predict the behavior of key macroeconomic variables for different scenarios on the state of policy between the US and Europe.
Suppose now that the government reduces (t) and increases (t') so that the government budget constraint continues to hold. What will be the effects on an individual con-sumer's consumptionin present
Suppose that the only input used in the generation of solar energy is sunlight
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