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Assume the US can produce Toyotas at the cost of $18,000 per can and Chevrolets at $16,000 per car.?
In Japan, Toyotas can be produced at 1,000,000 yen and Chevrolets at 500,000 yen. a. In terms of Chevrolets what is the opportunity cost of producing Toyotas in each country? b. Who has the comparative advantage in producing Chevrolets? c. Assume Americans purchase 500,000 Chevrolets and 300,000 Toyotas each year and the Japanese purchase far fewer of each. Using productive efficiency as the guide, which country should produce Chevrolets and which should produce Toyotas
Now illustrate what is the price elasticity of demand. Illustrate what is the cross-price elasticity of demand.
Elucidate under a fixed exchange rate system expansionary monetary policy depletes foreign reserves at the federal reserve.
Illustrate what are the levels of income per worker also consumption per worker. Show how capital stock per worker will evolve over time in both countries.
If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium.
If instead the Fed wants to stabilize aggregate demand, how should it change the money supply..
When a construction possibilities frontier is bowed out, away from the origin the opportunity cost of a good.
discuss whether you agree or disagree with Chairman Bernanke's remarks on economic outlook and the role of the Fed' s monetary policy effectiveness by using unconventional policy.
Illustrate what the effects would be if real GDP is growing also both the velocity of money also the money stock are constant. Please converse.
Explain how it will affect the number of employees you schedule. All other things being equal, what will happen to prices of the Galaxy and the iPhone.
The Federal Reserve Board is considerining changing its target inflation rate. However, they are concerned about the immediate effect on inflation. Find the sensitivity of equilibrium inflation to a change in the Fed's target inflation rate in the..
A country that has never had its own currency has formed a central bank and put you in charge of developing money.
The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is $5 a ride. Motorville taxicab drivers want to obtain government's permission.
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