### Macroeconomic variables during economic expansion

Assignment Help Macroeconomics
##### Reference no: EM1314549

Because net exports are counter-cyclical, analyze how the following change during an economic expansion:

• Balance on current account
• The rate of interest
• The value of the dollar

Consider the case in the context of a flexible exchange rate and a fixed exchange rate.

#### Questions Cloud

 Exchange rate system and short run trends : Discuss the short-run movement toward equilibrium in the currency markets in a flexible exchange system. Appropriate chi-square distribution : A sample of  n  observations is taken from a population. When performing statistical inference about a population variance, the appropriate chi-square distribution has: Effect on ending inventory and cost of goods sold : Analysis of various methods of inventory system and its effect on ending inventory and cost of goods sold - Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income.. Describe the term bond valuation : Describe the term Bond valuation and the bankers suggest attaching 45 warrants, each with an exercise price of \$25 Macroeconomic variables during economic expansion : Because net exports are counter-cyclical, analyze how the following change during an economic expansion: Consider the case in the context of a flexible exchange rate and a fixed exchange rate. Which company is minimizing income taxes : Which company is minimizing income taxes it must pay and Which company would have reported the higher net income if both companies had used the same method of pricing inventory? Probability density function : Give a mathematical expression for the probability density function of driving distance. Sectoral shock and adjustment in long run equilibrium : Illustrate the economy's adjustment to its long run equilibrium only, as the formerly dislocated (and now retrained) labour force is finding employment in new industries. Effects of lifo and fifo methods of inventory system : Effects of LIFO and FIFO methods of inventory system on ending inventory and Which company's valuation of ending inventory in the balance sheet is more likely to approximate replacement cost

### Write a Review

#### Calculate the international supply and consumer surplus

Compute the producer surplus from parts a and b. Are producers better or worse off as a result of international trade? Discuss why.

#### Explanation for human development indicator

Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)

#### Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

#### Prepare a project summary

Overview of the project's objectives and scope

What is business cycle? Describe the four phases of the business cycle. Where on the business cycle do you think the U.S. economy is today?

#### Production possibilities curve for medical services

Draw a bowed-out production possibilities curve (PPC or PPF) with an aggregate measure of medical services, Q, on the horizontal axis and an aggregate measure of all other goods (and services), Z, on the vertical axis.

#### Computation of best production schedule

Taiwan Electronics produces 3 models of the CB radios, A, B, and C-Employ the transportation model to find out the best production schedule.

#### Computation of deadweight loss in health insurance

Let's say there's a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at \$40. Assume that everyone in society has health insurance that pays 80% of all medical services

#### Long run behavior of monopolistic competitive firms

Mention the four assumptions for the Monopolistic competition model.

#### Level of savings and equilibrium level of income

How would you show what happens with equilibrium income if agents suddenly lose confidence and decide to spend less, even if their income has not changed?

#### Graphical representation of long run average supply

There are many factors might change AD and AS, and equilibrium. Please evaluate the effect of following scenario on the AD curve, AS curve, and accordingly the effect on equilibrium price level and equilibrium GDP/output.

#### Determination of shut down point

Provide a report to management of the firm as to whether or not it should continue to operate at a loss?