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Q1. Although the U.S. is one of the richest nations in the world, it is also the world's largest debtor nation. We often hear that the problem is the nation's low savings rate. Suppose policy makers attempt to rectify this by encouraging greater savings in the economy. If their attempts are successful, what effect will this have on real GDP?
Q2. Consider a small open economy with a wide array of trading partners all operating in different currencies. The economy's business cycles are not well synchronized with any of the world's largest economies and policymakers in this country have a well earned reputation for being fiscally prudent and honest. In your view, should this small open economy adopt a fixed exchange rate regime?
Elucidate the implication of the efficiency wage theory for unemployment. In what way are piece rates, commissions, royalties, profit sharing, and stock options substitutes for efficiency wages.
Discuss what will happen in this market as it moves to a new equilibrium. If a hard freeze eliminates Brazil's premium coffee crop, what will happen to the price of premium coffee.
Suppose that there is a unit mass of consumers who are uniformly distributed on the segment[0,1]. Two firms are located on the line and sell identical products.
Illustrate what is your advice to the Canadian government about which market structure to choose for pasta industry.
Discuss this week's objectives with your team. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field.
Evaluate in relation to the key export readiness requirements and identify any characteristics that may be important to the company's potential export success.
What factors led to the mortgage default crisis? How did mortgage defaults affect banks involved in mortgage lending and mortgage investing
Show why this equilibrium point is unique, i.e. if we are not at point E, illustrate what would happen in this economy.
Illustrate what recording fee would you advise Johnny to demand from the record company.
The following equations describe a small open economy. Calculate the equilibrium level of output (Y*).
What would be the effect of a $5000 increase in the competitors' advertisement expenditure and outlet demand curve c) What would joy's advertising expenditure have to be to counteract this effect?
Explain why do you suppose that employees pay for general training and the employer pay for specific training with respect to the basic competitive model.
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