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a. According to the Purchasing Power Parity (PPP) condition, what is the relationship between changes in price levels between two countries and changes in their nominal exchange rates?
b. There is a massive capital inflow into many Asian economies after the adoption of “Quantitative Easing” policy in the Unites States. Examine (with the aid of loan able funds market diagram) the possible impact of the influx of capital on the loan able fund market in these Asian economies.
c. Examine how property rights affect a nation’s standard of living.
d. In country A, between 2009 and 2013 GDP measured in current prices fell from $196 billion to $144 billion. Over the same period, the relevant price index fell from 100 to 90. What was the percentage decline in real GDP from 2009 to 2013? Show your work.
Joe has never trusted banks and always kept his money in cash. Joe pulls out his money jar, discovers that it has $20,000 in it, and decides it is unsafe to keep that much cash. Joe stops at the Local
Bill Simmons is the manager of a small restaurant and must decide how much money he owes his suppliers. The best way for Bill to approach this as a critical thinker is to
Indicate whether each of the following statements is true or false. Explain why. a. When the law of diminishing returns takes effect, a firm’s average product will start to decrease
Suppose that a new law requires every firm to provide its workers with free parking spaces. These spaces are worth $200 per year to workers, but cost firms $500 per year to provide
Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.
Two manufacturing firm, located in cities 90 miles apart, both send their trucks four times a week to the other city full of cargo and return empty. Each driver costs $275 per day with benefits (the round trip takes all day) and each firm has truck o..
Illustrate what was the growth rate of nominal GDP between 1996 also 1997. Why do economists use real GDP per capita to measure the economic progress.
Using an Edge worth Box, graph the initial allocation and draw the indifference curve for each consumer that runs through the initial allocation.
The consulting firm McKinsey and Company expects this combination of medical care and tourism in India to approach $2 billion a year by 2012.
Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? .
q.the mundell-fleming model takes the world interest rate r as an exogenous variable. lets consider illustrate what
Using your answers above, why does the growth rate of real GDP differ depending on the base year? Explain how the technique of Chain-Weighted Real GDP alleviates this problem.
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