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Q. In the standard Keynesian framework in Open Economy Macroeconomics, the supply is assumed to be perfectly elastic and the condition required for stability of of equilibrium is the Marshall-Lerner condition. When we drop the assumption of perfectly elastic supply, the supply curve of imports becomes positively sloped and the condition for stability of equilibrium is Bickerdicke-Robinson-Meztler condition. Explain the Positively sloped Supply of imports and negatively sloping demand for imports (measuring foreign price on vertical axis and imports on horizontal axis), why as a result of rise in exchange rate, the amount of imports fall but not as much as it does when the supply is perfectly elastic?
Store maximizes profits and the price elasticity of demand for milk is -2 for coupon users, what is the price elasticity of demand for non-users.
What combination of T and M will you choose? Suppose that the price of day trip rises to $80. How will this change your decision making?
The manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months
Calculate whole expected convenience from each restaurant option and also compare?
Show how each of the following would initially affect a bank's assets and liabilities.
Represent graphically the effects of an expansionary monetary policy and a contraction fiscal policy in the IS/LM/FX model.
George and John, stranded on an island, use clamshells for money. Last year George caught 300 fish and 5 wild boars. John grew 200 bunches of bananas.
If the company has not paid dividends, discuss why think the company is not paying dividends or whether they should consider adopting a dividend policy.
Watch the video titled Fear the Boom and Bust. Using the tools of macroeconomics, identify the primary difference between the two philosophies.
Solve for equilibrium real output and also solve for the equilibrium interest rate.
A consumer must pay $10 per visit to an amusement park for the first five visits but only $5 per visit beyond five visits. What does the budget.
A flat tax plan allows individuals to deduct a standard allowance of $10,000 from their wages. Assume that the flat tax rate is 12%. Calculate the amount of income tax and the average tax rate if you were earning.
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