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a) What is Terms of Trade? How is it computed? Explain with an example. b) What is Comparative Advantage? Explain with an example of a two-country and two-commodity model.
Explain why savings is unlikely to equal intended investment in the Keynesian model. Equilibrium GDP is $5000 while full employment is $6000. What kind of gap is this? What would the Keynesians say the government should do?
Suppose robotic technology improves the results of abdominal surgery - less time to perform the surgery, faster recovery times, and fewer mistakes. What is the impact on the market for abdominal surgery usin this new technology?
Under a system of floating exchange rates, is monetary policy or fiscal policy better suited for promoting internal balance? Why?
There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q) = 10q2 +200q + 7000. The market demand is P = -4QD + 3000. Find the short run equilibrium price, market quantity, and firm quant..
q.the central bank of the fictitious country omega raises bank reserves by 100. what effect will the increase in bank
Expansionary monetary policy, or an "easy money" policy by the Fed..
Laptops have also become easier and cheaper to produce as new technology has come online. Despite the shift of demand prices have fallen
Can you describe how these participants contribute to the GDP [Gross Domestic Product] and to the economic growth? How can the economy bounce back quickly from the recession? As we begin fleshing out the Wheel of Income and the National Income Accoun..
Suppose a firm's demand curve is given by P = 120 - 0.5Q. Find the (value of) price elasticity of demand (point elasticity) for the demand curve when the price is $100. Is demand elastic or inelastic? Please list steps and explain why demand is elast..
The inverse demand curve for widgets is P = 130−2Q. There are two firms, A and B, who produce widgets. Each firm has a constant marginal and average cost of producing the good that equals 10. Firms compete in quantities and they make their quantity c..
Graphically, the reservation wage is shown by:
In the competitive market for welding services in Tucson, assume the demand is. calculate: (i) the quantity traded; (ii) the surplus generated by that trade; (iii) the division of that surplus between buyers’ and sellers’ surplus;
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