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a) Assume that Japan's macroeconomic equilibrium is equal to the potential GDP. As consumers around the world become more environmentally aware, there is an increase in the demand for Japanese hybrid cars. Using AD-AS model, explain carefully the immediate and long term effects of the event towards the economy. Draw by hand the appropriate AD-AS diagram to support your explanation.
Which of the following is one of the most important causes for the recent increase in income inequality in China? Which of the following would be part of the Thai demand for U.S. dollars? The World Bank tracked the performance of countries that had u..
Consider a project that cost $100,000 and yields a return of $30,000 for five years. At the end of the fifth year, there is a cost of $20,000 to dispose of the waste from the project. Should the project be undertaken if the discount rate is 0? 10 per..
In your textbook it discusses the tragedy of the commons. What does this mean and do you agree with the authors that there is a tragedy of the commons? Defend your answer.
Given the current condition of the United States economy, do you think United States rule makers would prefer to see the $ increase in value, reject in value or stay at its current value?
Shadow Bank 411 buys $3 million more securities in the market and "pays" for them with its account at Bank 411. Bank 411 borrows $3 million more as a first response.
Consider a firm with an EBIT of $1,011,000. The firm finances its assets with $4,720,000 debt (costing 7.1 percent) and 211,000 shares of stock selling at $15.00 per share. Calculate the EPS before and after the change in capital structure and indic..
Explain why global warming is not likely to be solved by the market mechanism alone. Utilize the terms externality and public goods in your explanation.
For each of the following schemes, explain the pricing strategy. Is price discrimination involved? If so, how? What does the firm hope to achieve and how does the strategy help achieve it?
What is the benefit of looking at economic indicators and policies overtime? Why should we learn how the government and businesses cause and/or respond to economic events?
This question deals discusses issues in three different areas of the international monetary system. The GOLD STANDARD period was roughly 1870 to 1914. The gold standard has some strong automatic mechanisms that lead to 8 in a long run sense) simultan..
How the budget affects economic activity. Explain when the government should have a budget deficit and when it should have a budget surplus.
Which of the following is NOT a characteristic of a perfectly competitive market? Recall the Application called "Wireless Women in Pakistan." What makes the wireless telephone market in the US NOT perfectly competitive? How do entry costs affect the ..
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