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What is happening to the US exports and imports and net exports in each of the following situations? Explain AND support your answers clearly.
a. Higher trade barriers for China’s imports to the U.S.
b. Euro depreciates against other currencies significantly.
c. The inflation rate in the US increases faster than other countries’ inflation rates.
d. Worldwide economic crisis starts
Calculate the t-statistics for each variable and explain what inferences can be drawn from them. If R2 of this equation is 0.25, what inference can be drawn from it?
There are a number of measures of aggregate economic activity, such as GDP, GNP, national income, personal income, and disposable personal income. Each of these measures can be a good indicator depending on the issue under consideration. the relative..
Explain why non-governmental organizations (NGOs) like the cooperatives described in the Fair Trade material play an important role in the economic development of developing countries. Why do the governments of these countries require help to protect..
Assume that the production of scissors is represented by q = 6*(K*L)1/2 . In the SR, K is fixed at 144. The rental rate (v) is 25, and the wage rate (w) is 10. a. (4 pts) What is the STC function in terms of q? b. (2 pts) Using your equation in part ..
Under conditions of perfect competition, profits can get squeezed out because of a
The economy begins in long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for her view that inflation is not a major problem for an economy.
Assume you are the plant manager for Crossroads Sign Company, which produces road signs in a market that approximates perfect competition. Due to a slow economy,
Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for t..
Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $18,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) t..
If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money.
In each of the situations described, state which component of aggregate demand (C, I, G, or NX) of the United States is affected and whether aggregate demand will increase or decrease as a result. The recent hike in the federal-funds rate target incr..
Your company has just signed a three- year non renewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment cost $200,000 and qualifies for 5 year..
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