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Some economist believe that Fiscal Policy can affect swings in the business cycle. Looking back to the book, it discusses the Japanese government and their government cutting taxes. Do you believe the Japanese were right or wrong to use Fiscal Policy in that manner? Why or why not?
Suppose the economy is at a position below the physical production possibilities frontier but above the institutional production possibilities frontier. In response to this situation, Keynesian economists would propose that government enact.
What do you predict the real exchange rate will be one year from now and what do you predict the yen per dollar nominal exchange rate will be in one year?
Suppose if airline industry was operating under other market structures, how would equilibrium price and quantity differ? Would it be higher, lower, or same?
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
Suppose that in Canada opportunity cost of manufacturing 2 television sets is 3 bushels of wheat. Suppose that in the United States the opportunity cost of manufacturing 2 bushels of wheat is 3 television sets.
Consider the costs of the new American producers who produce silk only after the tariff is inplace. What area on the graph shows the amount by which their total costs are higher than thetotal revenue that foreign producers would receive to produce..
As in class, assume that the capital account is equal to zero, as are capital gains on external wealth. Using the notation we worked with in class and given the assumptions made in problem 2, state the "generic" account (that is, the current accou..
What industries in the U.S. now have trade barriers and what is Foreign Direct Investment (FDI)? Provide an example of how the U.S. is involved in FDI.
essay on Research how the value of Chinese currency is determined and what political pressures are being placed on the Chinese government to change their method of determining their currency's value.
Stiglitz also argues that the IMF as another agenda besides its stated agenda of promoting stability and growth in LDCs. What does he mean by this? What, according to Stiglitz is the IMF's other agenda?
From the point of view of China's government and the well-being of the Chinese economy and people, what are the main reasons for the Chinese government to allow more flexibility and (probably) substantial yuan appreciation?
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
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