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Explain the concept of deflationary gap. Explain any two measures by which a Central Bank can attempt to reduce the gap.
Steel is labor intensive and rice is land intensive. According to the long run Heckscher-Ohlin model what happens when these two countries move frome no trade to free trade? Wages in France's rice industry? Wages in France's steel industry?
Assume that the country A has only three categories of traded goods and that A's imports and exports of the three goods are as follows:
Describe how does choice of an exchange rate regime alter conduct of monetary policy. In addition, please also explain when it tend to increase the power of the monetary authorities and when to decrease their power.
Suppose that the corn production needs only land and can production requires only labor. The US can produce either seventy kilograms of corn or 100 cans in an hour.
The world price of wine is below the price that would prevail in the United States in the absence of trade. a.) Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under ..
Research an issue on how international trade can affect a country's economic growth and externalities associated with international trade.
Suppose the domestic price (no-international-trade price) of copper is $1.20 a pound in the United States while the world price is $1.00 a pound. Assuming no transportation costs, the United States will
Suppose that the U.S. government collects a 35% tax on all corporate profit earned in the United States and that the Mexican government collects a 20% tax on all corporate profit earned in Mexico. After Acme U.S. and Acme Mexico pay taxes in their ..
How much does Korea gain and what is the range for the terms of trade for mutually beneficial trade
It is conventional to divide the nation's total production into four categories. Name and explain the four categories. In the United States, which category accounts for the largest share and the smallest share of the nation's total production.
The G-20 give a statement Saturday indicating developing country we unlikely to back off their demands that developed country's do away with subsides and tariff barriers from their farm items.
As the Mexican peso depreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in Mexico? What happens to the price of Mexican goods in the United States? Why would a country (for example, China) choose to keep their ..
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