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Suppose initially a closed economy is in a slight recession.
On the Keynesian cross graph in (AE - Y) space and the correctly labeled aggregate demand and aggregate supply graph in the (P - Y) space show the equilibrium price level, the current level of output, and the full employment level of output. Label the initial equilibrium with letter A.
Explain which of the three main forms of Foreign Direct Investment you would recommend for this company on this particular market.
What is a market clearing model? What is the difference between sticky and flexible prices, and how does the assumption about price flexibility relate to the time horizon of a particular economic model?
Glassworks and Clearsmooth compete in the local market for windshield repairs. The market size (total available profits) is $10 million per year. Each firm can choose whether to advertise on local television.
1. What is the opportunity cost of producing a capital good such a new road? 2. In economic terminology, what is the meaning of investment?
If a good has an income elasticity of demand equal to 2.7, how will the quantity demanded change when consumer income rises by 4 percent? (Please explain to me how you solve this, thank you!)
Many observers believe that the levels of pollutionin our society are too high. Economists argue that appropriate correctivetaxes or tradable pollution rights will resultin efficient pollution reduction. How dothese approaches target the firms that..
There are two types of borrowers, A and B. They each need a $10 loan but the bank cannot observe type. Type A always repays her loan but Type B only repays his loan with probability 0.82. If the bank figures that each type is equally likely to ..
question 1 the international monetary system exchange rate regimesa currency exchange rates for december 1999-september
A consumer product company is considering introducing a new shaving system called DELTA-4 in the market. The company plans to manufacture 75 million units of DELTA-4 a year. The investment at time 0 that is required for building the manufacturing..
Describe three ways we can use macroeconomic analysis, with one original example for each way. You are running a small yard maintenance business for the summer.
Woman are often charged more than man for haircuts performed by the same haircutter, do you think it is a price discrimination or not? Explain your reasons.
Explain how MNE investment flows from richer countries to poorer countries can have a similar, and potentially accelerated, effect to that of "free trade". Consider the ways in which national tax and/or subsidy policies may affect this process.
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