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Explain briefly the G/GDP, Tax/GDP and Debt/GDP ratios. These ratios have increased substantially in most countries during the past decades. Yet, we are confronted with severe macroeconomic problems. Why? What is the role of government in addressing the macroeconomic problems if we have reached the limits to these ratios?
The predictive power of the Heckscher-Ohlin model, at least in terms of forecasting the volume of trade, appears to undergo improvement upon abandonment of the assumption. The gravity model states that trade between two countries will increase if the..
What would the following contracts look like on a graph where the total income is on the horizontal axis and the number of tasks is on the vertical axis?
Assume you have a customer who would like to track inventory including vendor (where the product comes from) and customer (who the product is sold to). What needs to be done to create this database?
According to the Keynesian view “Businesses will undertake all investment projects for which the expected rate of profit equals or exceeds the interest rate.” Explain what this means.
Suppose that you are a governmental official who is responsible for making a recommendation on one good or service to be subject to a per-unit sales tax. Your boss, and elected official, told you to consider taxing widgets and fisbins sell for about ..
q1. if capital is measured on the vertical axis and labor is measured on the horizontal axis the slope of an isoquant
Compare the effects of an aggregate-demand-induced recession with an aggregate-supply-induced recession.
Assume that you are going to start a small business of your own. Describe the business and, utilizing the concepts of this unit and the earlier units, discuss: What costs you would incur; What competition you might experience;
Unemployment spells and long term unemployment. According to the data presented in this chapter, about 47% of unemployed workers leave unemployment each month. What is the probability that an unemployed worker will still be unemployed after one month..
Behavioral economics clearly makes an important contribution to our understanding of economies. Which, after all, are driven by human behavior?
West Paragon, a developed economy, has been experiencing stable and low inflation for the last two years. There is consensus that the current unemployment rate of 4 percent is also its natural rate of unemployment.? In claiming that an expansionary m..
You decide to open a retirement account at your local bank that pays 7%/year/month (7% per year compounded monthly). For the next 20 years, you will deposit $500 per month into the account, with all deposits and withdrawals occurring at month’s end.
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