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The supply function for good X is given by Qxs = 1,000 + Px - 5Py - 2Pw, where Px is the price of X, Py is the price of good Y and Pw is the price of input W. If the price of input W increases by $10, then the supply of good X:
Compute the ex-post optimal monetary policy and the consequences for nominal exchange rate. Explain your results
For the U.S. perspective, imports are the goods produced by foreigners, imported to the U.S., and consumed by Americans. Exports are the goods produced by Americans, exported to other countries, and consumed by foreigners. U.S. GDP does not includ..
Calculate Jill's economic profit and what makes economic profit different from accounting profit and find the profit- maximizing price and quantity in each market.
The US presently has a current account deficit with Japan. Determinje what would happen to the dollar or yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the U.S.?
Write a very brief introduction indicating why you chose this particular firm. Give a brief summary of the firm's history and type of business and industry it is in. Examine the firm's operations and forecast for the next 3 to 5
The United States imports cheese from a variety of countries. The table above gives the domestic supply of, and demand for, cheese in the United States. The world price of cheese is $12 per pound, and trade is unrestricted.
Explain why would we expect the difference in the one year interest rate on the dollar vs one year interest rate on, the Euro or any other freely convertible currency,
Since 1950, the price of modest sedans has gone from $2,000 to over $13,000, for, say, a Ford Focus or Chevrolet Cavalier. Yet the number of cars purchased by Americans has substantially increased.
If the European slump also leads to a slowdown of the other economies that import goods from the United States, the effect could be larger. Assume that US exports decrease by 5% (as a result of changes in foreign output) in one year. What is the ..
Wolverine and Spartan both have populations of 40,000, the same level of human capital and the same natural resources. Both have the same production function with constant returns to scale and diminishing returns.
The U.S. government imposes a price floor for U.S. sugar that is above the market clearing price. Illustrate the U.S. sugarmarket with the price floor in place. Discuss the effects of theprice floor on conditions in the market
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time
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