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What are the differences between the Federal deficit and Federal Debt? How does a government budget deficit affect the economy, specifically the unemployment rate and job creation? Identify two periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods? Did it help or hinder job creation?
On June 5, 2003, the European Central bank acted to decrease the short-term interest rate in Europe by half a percentage point, to 2 percent by increasing the money supply through open market operations. What effect did the bank hope the action (of c..
Presently, boats rent for $500 per day also workers cost $100 per day. How many workers do you need to produce 200 tons of shrimp?
The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely) competitive firm. Note that the Demand (D) curve is the same as the MR curve for such a firm. Assume that the ..
A recent study determined the following elasticities for Volkswagen Beetles:
Technology is viewed by economists as a source of comparative advantage but technological advantage is often transitory. Use the Product Life Cycle (PLC) Theory to explain the role of technological innovation as a key determinant of the trade pattern..
Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that wins a majority vote generates the maximum total net surplus. Make your seco..
An artificial satellite circling the Earth completes each orbit in 112 minutes.
Monopolistically competitive firms try to differentiate their products in order to eliminate substitutes. What are the comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of labor? What are th..
Automatic stabilizers
Suppose V=$0, what is Jim's labor supply function now. Draw his labor supply curve. Illustrate what happened to his wage and substitution effects.
Consider the following Heckscher-Ohlin model. There are two countries, Home and Foreign. They produce merchandise and service using skilled labor.
suppose the domestic and foreign interest rates are both initially equal to 4%. Now suppose the foreign interest rate rises to 6%. Explain what effect this will have on the exchange rate. Also explain what must occur for the interest parity condition..
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