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Thoughts on aggregated expenditures. We learned that GDP = C + I + G + Xn. At this point we are focused on a private, closed (no international portion) economy. What will be our equilibrium GDP? And how do you find the actual values for the US for this particular question. What do you think?
The dollar has being weaker against other currencies ever since Bush administration took office. The government did nothing to stem the refuse. From the point of view of economic policy, what would you think was the cause?
The U.S Postal Service (USPS) is a monopoly because the federal government has blocked entry into the market for delivering first-class mail. Is the USPS also a natural monopoly How can we tell what would happen if the law preventing competition ..
A FX dealer in London normally quotes spot, 1M, 3M and 6M forward. When you ask over the phone for current quotes for YEN or USD you hear "111.43 to 51, 52 to 48, 150 to 144, 337 to 205"
Pat Protectionist thinks the United States imports too many goods from low wage nations like China. Pat will often point out items that have "made in China" labels on them and laments the fact
Explain why a country with a large primary goverment budget deficit and high government debt can end up in a vicious cricle where government debt tends to increase faster and faster. Use this analyse the current situation in Greece.
A firm purchases capital and labour in competitive markets at prices of r=$6/machine-hour and w=$4/labour-hour,respectively. With the firm's current input mix, the marginal product of capital is 12kg/machine-hour and the margi..
In recent years the exchange rate of the $ has been noticeably high against the yen. If for some reason investors around the world now decide that this increase is a temporary phenomena and that the $ will fall relative to the yen in coming months..
Explain and estimate the price elasticity of demand for a good or service of your firm, or a firm of interest to you. Estimate the price elasticity of demand by guessing at the effect of a 10 percent price change on the sales level.
Draw a graph of the U.S. automobile market in which the domestic equilibrium price without trade is Pd and the equilibrium quantity is Q d. Use this graph to illustrate and explain the effects of a tariff if the United States were an auto importe..
In September 2003, a United State retailer wants to buy canola oil from a Canadian farm. At that time in Canada, one barrel of canola oil value C$2.
Why do you think more than half of all the offshored jobs have gone to India Give an example (other than that in the textbook) of how offshoring can eliminate some U.S. jobs while creating other U.S. jobs.
Many have claimed that outsourcing by American companies is costing American jobs. However, companies claim that they cannot compete if they do not cut cost and one effective way of cutting cost, is to have some of your goods produced outside
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