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Despite the flaws of the pre-1914 gold standard, exchange rate changes were rare for the "core" countries (including the richer European countries and the United States).
In contrast, such changes became frequent in the interwar period. Can you think of reasons for this contrast?
Suppose that the government levies a $1.50 tax on a chocolate bar. What is the change in the quantity of chocolate bars bought, who pays most of the tax, and what is the deadweight loss?
What is the situation in which federal government expenditures are greater than federal government tax revenues called?
Make sure you indicate the horizontal and vertical intercepts. Now, suppose the local government is considering two health plans. Under plan A, the government will give out vouchers worth 2 free visits to the doctor.
What did classical economists assume about the flexibility of prices, wages, and interest rates What did this assumption imply about the self-correcting tendencies in an economy in recession
Explain the difference between inferior goods and normal goods. As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods. Explain the theory that education acts as a..
Assume the Required Reserve Ratio is 10% and the balance sheet of the People's National Bank looks like the accompanying example:
Identify and briefly explain the theoretical reasons why the IS-LM model was needed. Explain in detail the process by which the IS and LM curves are derived
Using Geert Hofstede dimension of culture. Describe a significant different between cultures that you have witnessed?
Can you select one positive and one negative example of events in your area, state, country or the world that might impact our life, careers or professions.
Suppose the ABC Corporation adopts a policy prohibiting its top-level executives, whose compensation packages-Use economic theory to analyze the incentive effects of this prohibition.
Assume two firms, A and B, serve a market with demand D(p) = 11 - p. Also assume that (i) firms compete for market share
Distinguish between explicit and implicit costs, giving examples of each. What are some explicit and implicit costs of attending college?2. Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit or econ..
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