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Illustrate about the Effective exchange rate
Assume that we are interested in external competitiveness of a country, say Japan. To do this we could look at evolution of a specific exchange rate, say exchange rate between the Japanese yen (JPY) and USD. The problem with this idea is that this exchange rate will reflect the external competitiveness and events in US as much as in Japan. If we want to isolate Japan without including events in other nations, we look at the effective exchange rate instead. Effective exchange rate is the price of a basket of currencies where every currency is weighted in relation to its significance to the country. Then such a price level is divided by a constant such that its value is exactly 100 at a given point in time. If, for instance, price index is 110 one year after the base year, then currency has depreciated by an average of 10% against other currencies that year.
Q. Equilibrium in the labor market? Equilibrium in the labor market Real wage W/P will be equal to the equilibrium real wage in the classical model
Determine the Problems evolved with Consumer Price Index To illustrate problems involved in calculating CPI we consider MP3 players. If you measure average price of MP3 players
OPEC oil cartel becomes subject to this tension or conflict such that the cartel gives way to a more competitive oil market resulting in a dramatic decrease in the world oil price.
please,how do i relate keynesian theories on fiscal policy to the topic"impact of oil revenue on agricultural productivity?
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Suppose the ABC chemical company discovers a drug that cures the common cold. ABC has plants in Europe and in the United States and can produce the drug in either continent at a ma
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explain the terms abnormal profits and normal profits
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