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Another group of economists, those who hold to the quantity theory of money, believe that V is predictable and otherwise unchangeable and that Q is steady. Is their view of the economy consistent with the Keynesian view, the classical view, or neither? Explain.
assume which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze
If both nations reduce trade barriers and again begin to trade but now N1 exports goods into N2, but N2 has little to export into N1, what will be the nature of capital and labor flows between the two nations? Explain your reasoning.
Population growth surges rapidly. Farmers are deciding what crop to plant and learn that the price of corn has fallen relative to the price of cotton.
Illustrate what is the capital account balance. Illustrate what is the official settlements balance.
Elucidate what happen to the prices of oranges and marginal product of orange pickers as a result of a freeze. Can you say what happens to the demand for oranges pickers. Why or why not.
Suppose that the government imposes a temporary tari? on all imports, which makes imports more expensive relative to domestic residents (reducing the trade balance for any fixed level of the real exchange rate). Discuss the implications of this polic..
Why is general equilibrium analysis an important tool to understand, in particular, in the context of policy analysis? Use an example that illustrates the importance of general equilibrium analysis, over and above partial equilibrium analysis, as par..
Explain this result in terms of the example in the question above. How might things change if the border were open, with no restrictions on immigration?
In many developing countries, government regulations and red tape impose high costs on those who officially register capital ownership. The dead capital problem that these government inefficiencies create reduces investment and growth.
bananas can be produced. Between these points. Illustrate what is the opportunity cost of producing a pound of apples.
Assume that the economy uses Cobb Douglas Production Function of the form: , and A=4, L=10000, K=100. Consumption (C) is given by the equation C = 700 + 0.8(Y – T). What are the equilibrium values of Y, real wages, real rental rate of capital, C, I, ..
Why are entrepreneurs willing to supply goods and services for consumers at attractive prices? Is it because they care personally about the consumers?
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