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On bilateral flows: theoretically, if there were no statistical discrepancy, which of the following quantities should be equal zero always? Please circle or otherwise indicate all that apply out of (1), (2) and (3) below:
1. The US Current account
2. The US Current Account + The Chinese Current Account
3. The World Current Account calculated as the sum of all the Current Accounts of all Countries in the World
Please follow the convention from lecture and assume trade with space aliens equals to zero and that there are no factor payments to/from space.
During World War II there was a freeze on wages, and corporations found they could evade the freeze by providing other fringe benefits such as retirement funds and health insurance for their employees. The Internal Revenue Service went along with thi..
Over the last several years, the airline industry has lost billions of dollars and individual firms (with the exception of a few discount carriers) have been unable to make a profit. Assess aspects of the oligopoly market structure that may be releva..
Money Demand. Understand the Baumol-Tobin model Be able to use the Baumol-Tobin model to analyze the effects of changes in the interest rate, the price level, and real income on money demand and to analyze the effects on the interest rate of a change..
What is asymmetric information? Explain adverse selection and moral hazard problems arising because of asymmetric information.
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Illustrate what would be the pes0-dollar exchange rate be if purchasing-power parity holds. If a monetary expansion caused all prices in Mexico to double.
Explain how does the existence of money reduce the costs of making transactions relative to a society based entirely on barter.
The economic and financial crisis from 2008 to 2009, also known as the global financial crisis, was considered to be the worst financial crisis since the Great Depression. What are reliable predictors of economic and financial crisis? Describe some a..
Using the aggregate demand-aggregate supply diagram, explain the impact of an appreciation of the U.S. dollar on the price level and real income in the short run.
If the wage of sawmill workers is $10 per hour, then how many workers will the mill hire?
Both Veblen on one hand and Kahneman and Tversky oon the other hand challenged standard neoclassical notions of rationality. Explain the similarities and differences between Institutional Economics (Veblen) and Behavioral Economics (Kahneman and Tver..
What is endogenous growth? How do endogenous growth models differ from the neoclassical models of growth? How do the implications of an increase in saving with regard to both the level and the growth rate of output differ between the neoclassical gro..
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