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Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". Otherwise, the two economies are similar in every respect. Which country will suffer the greatest decline in employment as a result of the decline in exports?
Productivity is found by dividing the country's gross domestic product by the number of people employed. Only part of the U.S. productivity growth,can be explained by the longer hours Americans are putting in.[The U.S.] also beats all 27 nations in..
Over the course of the past year, the price of internet services has risen to $4, but the price of books has remained the same. The government has decided provide this student with additional money to compensate for the higher price of internet ser..
1) Define the current state of our economic health in the United States. You should include statistics (inflation, unemployment, and GDP) to confirm the direction. 2) Explain who is in charge (and who assists) with the stabilization of the economy ..
Assume the U.S. and Canada are hit by a negative aggregate supply shock and suppose real wage are flexible in the U.S. but rigid in Canada. Use the labor market and the production function to describe the effect on employment.
Which of these methods of encouraging growth would you suggest for the typical company in Hong Kong and Singapore and explain the rationale for your choice.
For decades, these countries had maintained a stable currency and enhanced their globalization efforts. Following this prosperous period, Thailand, South Korea, Indonesia, Malaysia, and the Philippines dropped to net outflows of U.S. $12.1 billion..
International capital movements can bring major gains both to the lending or investing countries and to the borrowing countries, through intertemporal trade and through portfolio diversification for the lenders/investors
a. Why would it be counterproductive for the Bank of Canada to fix the value of the exchange rate b. What is the effect of this policy on the interest rate in the long run How do you know
The economy's Investment Function, indicates that when the expected real rate of interest increases agents in the economy respond and what happens to the import price of this tablet and the number of tablets imported into the US?
Based on government report, the U.S. can manufacture 3-computers or 3,000 cases of win with one unit of resources, while Germany can manufacture one computer or 5,000 cases of whine with one unit of resources.
Evaluate the relationship between the European Euro crisis in 2012 and the American economy. Assess how this affects American businesses and decisions made by mangers related to sustainable profitability. Provide examples with your response.
internalization1. operate in domestic market only. least productive2. serve foreign markets through subsidiaries. more
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