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a) Briefly explain why each of the following would cause the Aggregate Demand curve to shift to the right(an increase), or to the left(a decrease):
1) an increase in housing prices
2) a decrease in interest rates
3) expectations that the economy will not perform very weel in the near future
4) rapidly growing economies of our trading partners
5) a planned decrease in spending by the Federal Government
b) List and explain three factors that could cause the U.S. Aggregate Supply curve to shift to the right(an increase).
Use a graph of the pollution abatement market, model a condition in which allocatively efficient level of abatement occurs at 100%, or equivalently where pollution is zero
If the demand for a domestic currency reduces in a country using a fixed exchange rate system, determine what must the central bank do to keep the currency value steady?
A big level of international trade protectionism is required if developing nations are going to be able to industrialize and develop their own domestic industries in face of fierce foreign competition.
housing prices have decreased, many homeowners have lost their homes because they are unable to pay the increasing mortgage costs of their variable rate home loans, more houses came on the market, fewer people could qualify for a home loan because..
Describe how the following events would effect market for South Africa's currency, the rand, suppose a floating exchange rate.
Make a domestic supply and demand diagrams for an item in which the U.S. does not have a comparative advantage. Discuss what impact do foreign imports have on domestic price and quantity?
Would this increase or reduce the gains to Canadian consumers? Use a graph to illustrate.
What would be the relative supply of Cars in the world market, if both NZ and UK were to produce these two goods on the basis of their comparative advantage in production?
Its the spring of 2002. You are an economist on President Bush's council of economic advisors. Congress is considering legislation, called the "2002 Farm Bill," that would increase subsidies to US farmers.
What are the advantages of having comparative advantage in a car industry?
Durable Products, Corporation, has received a bid from a foreign dealer to fill the firm's requirements for additional mineral solution. Durable's current dealer provides material that is, on average, 99 percent pure.
Determine what has caused the United States run a merchandise trade deficit year after year since the early 1980 discuss the relationship between a country's net financial inflow and its current account?
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