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Which of the following statements explains the flaw in your friend’s logic? have to chose one of these options:
Nominal exchange rates adjust for the effects of inflation.
The scheme would work only if the real interest rates are the same in both nations.
The scheme would work only if there is greater inflation in one nation than in the other.
Your income last year accounts to $77,000.00 tax bracket are as follows :$0 - 20,000 pays 5% Above $20,000 to $50,000 pays 10% above $50,000 pays 15%. How much is your tax at the end of the year using 15% proportional income tax? How much is your tax..
Illustrate what effect do rising interest rates have on the value of the Australian dollar. Use an AD/AS diagram to show the effects on Real GDP and the price level of an appreciating Australian dollar.
Pete and Paul live in an exchange economy (so we can use the Edge worth-box). The economy has endowment of 10 cheese slices and 10 crackers. Is Pete consuming 3 crackers and 5 cheeses slices a Pareto-optimal allocation? If not, how could you rearrang..
Suppose that the money demand function is M P d = 1000 100r where r is the interest rate in percent. The money supply M is 1000 and the price level P is 2. Graph the supply and demand for real money balances. Assume the price level is fixed. What ha..
Suppose 40 percent of a population all receive an equal share of p percent of the nation’s income, where 50 ≤ p ≤ 100. The remaining 60 percent of population also shares the rest of the income equally. For any such p, what is the Gini coefficient for..
What economic concept illustrates the fact that at an all-you-can-eat restaurant, one rarely literally eats all the food he/she is physically capable of consuming? Explain.
In your own words, and using research sources other than the textbook, distinguish between economic profit and accounting profit. Please cite references
Which of the following is the best definition of the short run?
Critically describe the impact of the financial crisis on the automobile industry's production and trade. Analyze the support measures that were taken by the governments to support the automobile sector.
Show that for any level of output q, the minimum cost of producing q is $q. d. Explain how a 10% wage tax would affect the way in which the firm chooses to produce any given amount of output
Explain how shortages/surpluses are eliminated in a free market system. You can use graphs and specific examples in your analysis. Graphs don’t count towards the word limit. Explain the difference between scarcity and shortage.
If a country desires to have stable prices (or low inflation), why not simply pass a law that prohibits firms from changing prices? Elucidate pros and cons associated with this case.
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