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Question 1
Consider a small open economy with a fixed exchange rate system. Suppose there is a general expectation that the central bank will revalue the domestic currency in the future (i.e. it will reduce the fixed exchange rate defined as the amount of the domestic currency per unit of foreign currency). Explain the short run effects of this on the economy. Use the appropriate graph to illustrate your discussion.
Question 2
Will recessions starting in the U.S. be more easily transmitted to Canada under a fixed or flexible exchange rate system? Use the appropriate graphs to illustrate your discussion.
Compute producer surplus, how much is the difference between the producer surplus and profit in this case
Explain the principles of microeconomics apply to other country. Describe any differences or special situations.
Explain how has a more diversified labor force affected the corporate structure and the economy.
Identify trends or other patterns in inflation within the an economy of your choice over the last five years using quarterly data from the Central Bank or other Government based Statistical agency websites as a source.
Utilize the Heckscher-Ohlin and factor proportions framework with two factors, skilled and unskilled labor.
Calculation problems should be proven by showing the process you used or the formula you applied to solve the problem.
Compute the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.
Mmachines of Newspaper vending are designed so that once you have paid for one paper; you could take more than one paper at a time.
Assume that the Federal Reserve acts to lower interest rates. How this will affect the U.S. economy.
In providing assistance to the states like Washington has in the past attached strings which have dictated state legislation.
A recent McKinsey report concluded that 'If a price war occurs in a specific market-Critically examine this statement.
Illustrate what would be a monetary policy prescription to reduce or eliminate deflation. How would deflation affect your business or a business you are familiar with.
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