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Q. Using the GG - LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports.
Answer: Such a alter pushes LL upward and to the right. Therefore the level of economic integration at which it becomes worthwhile to join the currency rises. Generally increased variability in the product markets makes countries less willing to enter fixed exchange rate areas. This prediction assists explain why the oil price shocks after 1973 made countries unwilling to revitalize the Bretton Woods system of fixed exchange rates.
Q. The following table introduces the relationship between wholesale price index and industrial production changes between the years 1929 - 1935. What is the purpose of the given
Q. How mobile is Europe's labor force? Answer: Differences in culture and language discourage labour movements between European countries. Differences in regional unempl
Q. Explain why one can write the demand for money as follows: Md = P L (R, Y) Answer: The collective money demand is proportional to the price level. Imagine that every prices
Using examples, from the government, illustrate the significant opportunity cost.
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Q. Suppose both governments offer their respective company a $10 million subsidy. Answer: Mutually companies would enter the market as each one knows that regardless of the o
Ask qu. What are the various forms of economic integration? estion #Minimum 100 words accepted#
Q. Using a figure, show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run. Answer: A t
Q. Discuss the effects of ongoing inflation based on the PPP theory. Answer: Other things equivalent money supply growth at a constant rate eventually results in ongoi
Q. Explain why price levels are lower in poorer countries. Answer: One theory explicate the difference in prices on different endowments of capital and employment Bhagw
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