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What is happening to the US real exchange rate in each of the following situations? Explain.
a. The US nominal exchange rate is unchanged, but prices rise more abroad than in the US.
b. The US nominal exchange rate declines, and prices rise less in the US than abroad.
c. The US nominal exchange rate increases, and prices are unchanged in the US or abroad.
John lives for three periods. He is currently considering two alternative education-work options. Alternative 1: he can start working immediately, earning $100,000 in period 1, $110,000 in period 2, and $120,000 in period 3
the average price level is $4 per unit also the quantity of money. Illustrate what happens to velocity if the average price level falls to $2 per unit, the money delivery is $2000 also real GDP is 4,000 units.
What is the balance due on the original mortgage if 20 payments have been made in the last 5 years?
Elucidate what does this imply about the use of monetary and fiscal policy over the business cycle.
This means that in the particular year the economy produced no capital goods at all." Do you agree. Why or why not? Explain: "Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zer..
Regulating Monopoly. Explain how a regulator can reduce the deadweight loss associated with monopoly by setting a price cap in the market. Show what the ideal level of this price cap is, and the resulting inefficiency.
Suppose price of widgets is $10. How many widgets does each firm produce. How much profit does each firm earn. Is industry in long-run equilibrium? How do you know.
In the short run, the marginal cost curve crosses the average total cost curve at:
Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that are willing to pay a price of $25 for a pair of Levis Jeans, and a low-end type customer that are w..
Create graphs and tables to illustrate costs and revenues for firms in different market structures. You have learned about the market structures of pure competition, monopoly, monopolistic competition, and oligopoly. In this assignment, you will appl..
Define absolute and comparative advantage in your own words. Elucidate how absolute and comparative advantages were used in your simulation.
How does stakeholders' satisfaction affect triple constraint. What would you do to prevent changing project requirements that might lead to scope creep.
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