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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 figure? Please note that the numbers could be starting from the origin with 50 and 50 and increase by ten units, each time. The numbers 10, 11, 12 etc. could read 100, 110, 120 etc. The numbers on the Y-axis best be ignored and just note that every dash shows a ten beginning from 50. Answer: The reason is to illustrate those countries that left the gold standard early and adopted counter-deflationary monetary policies such as Australia and the United Kingdom experienced milder declines in output during the Great Depression. Countries such like France and Switzerland that stuck to the gold standard longer had greater decline in price level and output.
Q. The two deadweight triangles are the Production distortion and Consumption distortion losses. It is simple to understand why the Consumption distortion constitutes a loss for
Q. Define countertrade. Discuss the different forms of countertrade? Counter trade means all types of foreign trade in which the sale of goods to another country is associated
Q. Who are the major participants in the foreign exchange market? Answer: 1. Commercial banks 2. Corporations 3. Nonblank financial institutions 4. Central banks
What does the factor proportions theory posits
Q. Using the GG - LL framework, analyze the effect of Libya subsidizing the Pakistani Nuclear programs. Answer: This will move the GG curve upward and to the left causi
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THE SETTING Country X is blessed with large reserves of natural resources, spectacular physical landscape and a moderate climate. It is inhabited by a well educated and industrious
New threats to an open trading system
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