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Between 1968 and 1980, the US economy experienced a slowdown in productivity growth. However, since the mid 1980s, the economy has experienced increases in the growth rate in productivity. Can you give reasons why US productivity growth started to increase during the late 1980s and continued throughout the decade of the 1990s?
Assume that on January 1, 1999 spot exchange rate was Yen/£=198. Over the year, British inflation rate was 4 percent, and the Japanese inflation rate was 6 percent.
Explain why the general level of wages is high in the United States and other industrially advanced countries. What is the single most important factor underlying the long run increase in average real wage rates in the United States
Still remaining within the Ricardian framework, Suppose that the Canada has one hundred units of labor available for production while Mexico has two hundred units of labor and both nations produce corn and wheat.
Canada has comparative advantage in oil production, and China in shoes production. Suppose China grows in a NON biased way, i.e., both sectors grow in the same way. Analyze the effect of this NON biased growth on Canadian welfare.
Indicate five of the world's economies that are the most free. How do the income levels and growth rates of freer economies compare with those that are less free Has the United States become more or less economically free during the past decade
The US Energy Information Agency Supplies current and historical data for the world crude oil prices. Look both at current and historical data on world crude oil prices. over the last six months, do you think the price of crude oil has produced an..
Does the difference in the change in the general CPI compared to the change in the Medical CPI clearly indicate that there has been more inflation in the medical industry than overall in the economy?
If the spot rate for British pounds is 0.57 pounds equals 1 US $, and the annual interest rate on fixed rate one-year deposits of pounds is 3.5% and for US$ is 2.5%, what is the ten-month forward rate for one dollar in terms of pounds.
Suppose that a certain manufacturer has a monopoly on the sorority and fraternity ring business (a constant-cost industry) because it has persuaded the "Greeks" to give it exclusive rights to their insignia.
Explain why this is puzzling. How can the puzzle be resolved, if at all? What are the main alternative approaches? Discuss briefly the advantages and disadvantages of each.
Why can't all the balance of payments accounts be in surplus What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system
If you were President of the US and you were making decisions on trading, would you rather have a comparative or absolute advantage in trading Can you have both a comparative and absolute advantage in trading
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