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Specify whether the following statement is true, false or uncertain. Explain your answer in a short paragraph.
"The empirical evidence to support the existence of PPP is so bad that one should not use these models to explain exchange rate movements." (Hint: short-run versus long-run)
Average fixed costs in the short run:
Predict the income for a person who is 34 years old and had a college grade point average of 2.5
Suppose that the Organization of Petroleum Exporting countries raises oil prices by 50% What effect will this have on the U.S. aggregate demand curve? On the U.S. short-run aggregate supply curve?
What effect does the Dollar depreciation and appreciation have on US trade balance? Explain. Discuss the pros and cons of a fixed-exchange rate regime.
During their discussion of the Swedish economy, the authors distinguish between high-tax governments that provide lots of amenities and low-tax governments that
Why does greater flexibility of prices as time passes cause economists to utilize different macroeconomic models for different time horizons?
US imports oil at the world price, $35 per barrel. The domestic supply curve in barrels per day is S = 3500000 + 350000P with P in dollars. Domestic demand curve is D = 60,000,000 - 500000P. Draw the US demand and supply curves for oil and indicate h..
There are two major schools of thought in macroeconomics with differences in the short run analysis - the Classical and Keynesian Models.
a) Explain why rent controls are used by governments.
What are the influences of Keynesian Perspective and the Neoclassical Perspectives on monetary policy?
A set of cash flows begins at $200,000 at the end of year 1. It deceases by 10% at the end of year 2 and so on, until n = 10 years. If the MARR = 8%, what is the PW of the flow? Lucky Linda, a very good Avon salesperson, is averaging $100,000 per yea..
The exit of General Motors and now Ford from India market has been a much discussed topic. Obviously these decisions were taken NOT overnight, Ford indeed must
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