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What are the managed floating exchange rates, and how are they used?
Jacob Viner originally envisioned a situation where, in the demand/supply graph of a trade-diverting customs union, the demand cureve was vertical and all supply curves (including the supply curve of domestic producers) were horizontal. In this situa..
Which of the following are the ideal conditions for a laissez-faire economy?
Suppose the status quo is zero abatement. Who wins and loses from moving to the efficient amount of air pollution found in part d) and by how much? Is there potential to create a win-win out of this situation? How?
The government releases a report saying that drinking coffee makes you live a longer, healthier life. At the same time, we discover that a very bad winter has killed most of the coffee plants in Brazil. How will these two changes affect the equilibri..
q.suppose you have a 2000 bond that makes an annual interest payment of 75. use this information to answer the
Support your answer with data on the real GDP growth rate, the unemployment rate, and the CPI inflation rate. You may obtain these data from the Bureau of Economic Analysis website
The industries or sectors of the economy in which business cycle fluctuations tend to affect output the most are:
Now Assume that the interest rate falls to 50 percent, and the household decides not to borrow or lend at all. Is the household better off or worse off with the higher interest rate.
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. Assume that the country is in a budget deficit and carrying a..
Under a monopsony scenario explain why the marginal labor cost is above the supply curve (average labor cost). What is the nature of inefficiency or misallocation associated with monopsony power?
Suppose a decision makers utility function can be described by U(w)=w^0.5. What is this investment's certainty equivalence for this decision maker?
A consumer's preferences over two goods are represented by: U(x1, x2) = (x1^2)(x2^3)/100 The prices are P1 and P2, and an amount of money E can be spent on these goods. Show that the two uncompensated demand functions are: x1 = 2E/5p1 and x2 = 3E/5p2
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