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Q1. Although the U.S. is one of the richest nations in the world, it is also the world's largest debtor nation. We often hear that the problem is the nation's low savings rate. Suppose policy makers attempt to rectify this by encouraging greater savings in the economy. If their attempts are successful, what effect will this have on real GDP?
Q2. Consider a small open economy with a wide array of trading partners all operating in different currencies. The economy's business cycles are not well synchronized with any of the world's largest economies and policymakers in this country have a well earned reputation for being fiscally prudent and honest. In your view, should this small open economy adopt a fixed exchange rate regime?
Idea that a country can simultaneously pursue only two of the three following policies: free international-capital flows, monetary policy for domestic stabilization, and a fixed exchange rate.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
What are the strength of the neoclassical models of labor supply and labor demand. What are the weakness of the neoclassical models of labor supply and labor demand.
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
Board of directors has directed you to choose an output level that maximizes the firm's profit. You have an incentive to maximize profits because your job and salary depend on the profit performance of this company.
Explain the logic of the Ricardian view of government debt and evaluating its practical relevance.
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
Who has the comparative advantage in what product. Once they specialize, how much does output increase. What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing.
Disposable personal income equals personal income and two factors are the keys to determining labour productivity
Discuss the Social Security System, current status and future outlook. Be thorough and focus on the economic considerations. Cite at least 6 sources.
What is the difference between a production function and an quant. Explain the law of variable proportions with the help of quant.
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