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1. Is the budget deficit of a country linked to its current account balance? If so, how so? If not, why not? Explain how it is possible for the United States’ current account deficit to grow while the budget deficit has disappeared. Hint: There’s an equation that will help answer this question.
2. When looking at a nation’s financial account, is it possible to determine the total amount of official reserves available to that nation? If so, explain why. If not, explain why not
3. What can you say about the sign of the financial account if the government budget is balanced, and S is greater than I? Why?
Suppose Jane has a one third chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Jane does not become disabled, she will earn her usual salary of $60,000. Jane has the opportunity to purchase disability in..
What effect each of the following events would have on LRAS? Would LRAS shift left, right or no effect? Explain why.
Consider this statement. “It is estimated that leaky pipes and dripping faucets are the source of hundreds of thousands of dollars of lost water each year. Business firms could reduce waste by inspecting more pipes thoroughly and repairing water leak..
q.as manager of city racquet club you must determine the best price to charge for locker rentals. suppose the marginal
Suppose there are two plants that are emitting sulphur dioxide into the air and polluting the environment. One plant has a higher marginal benefit curve than the other. Draw and label a graph illustrating the impact of imposing a uniform environmenta..
Might a job retraining program be a more useful policy to address structural unemployment than to address frictional unemployment? Explain with the help of a graph how the minimum wage might cause unemployment; Explain with the help of a graph how th..
In recent yrs, persons also state governments have sued various tobacco companies to compensate for illness also injury allegedly cause d by cigarette smoking.
What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month.
Explain the concept of devaluation, and explain the effect devaluation has on the price of a country's imports. What some effects on the industry? Buying and selling countries? Give an example that supports your claims.
Which of the following criteria must be satisfied when selecting a policy? instrument?
Question 4 Which of the following characteristics best defines a public good? Question 5 The market works efficiently in the absence of externalities if the good is: Question 6 Visiting the public beach during summer is an example of an activity that..
For each of the following events, graph and explain the short-run & long-run effects on output and the price level, assuming policymakers take no action.
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