Economys capacity to produce

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Q1 If you are the chief economist of a country experiencing full employment and high inflation levels over the past four quarters, illustrate what macroeconomic policies, if any, might you enact in response to these economic conditions? Explain how would you expect each policy change to affect the economy?

Q2. According to the production function, with 300 labor hours, Illustrate what is this economy's capacity to produce?

Q3. Why do you think IKEA's expansion into Europe went so well? Why did the company subsequently stumble in North America? Illustrate what lesson did IKEA learn from this experience? Explain how is the company now applying these lessons?

Reference no: EM139316

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