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Suppose that PPP does NOT hold.
1. Explain the role of movements in the relative price of non-traded goods for real exchange rate fluctuations, using a simple decomposition of the real exchange rate into two parts to illustrate your answer.
2. How does a real exchange rate depreciation, due to any source, affect equilibrium real income, the home equilibrium interest rate, and the home price level? Use diagrams to illustrate your answer.
Some politicians have suggested that the U.S. enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment
In the Keynesian, Classical, as well as Solow model, Elucidate the impact of an increase in production technology
Maker an article or current event article which relates to government regulations or antitrust activities.
Suppose in a closed economy, government spending is $60, business investments are $120 and consumers' spending is given as C = 120 + 0.85Y. What is the equilibrium level of output?
In 1988, Du Pont's fiber division introduced a new incentive program for its 20,000 employees, including both management and lower-level employees. The novelty of the program was that a portion of the employees' annual pay (approximately 5%) would..
What is the difference between contractionary and expansionary fiscal policies? Which is more appropriate today? Explain your answer. How might contractionary and expansionary fiscal policies affect your organization?
Suppose that the income effect of the tax induced price change is negligible, the excess burden of the tax will be.
your niece just started her college career with a major in economics. she is curious as to the interrelationship
Consists of performing application oriented exercises wherein specific economic principles learned in this course are put to practical use.
What would like to know and how to get the equation. Your help is greatly appreciated.
Identify components of the economic stimulus package beingdebated in Congress and how they might increase GDP and help theeconomy. For example, one aspect of this package involves jobcreation, which would increase productivity
Assume that Jimmy Cash has $2,500 in his checking account at Folsom Bank and uses his checking account card to withdraw $250 of cash from the bank's ATM machine. By what dollar amount did the M1 money supply change as a result of this single, isol..
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