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Australia is a small open economy with a flexible (floating) exchange rate system. Use the Mundell-Fleming model (i.e. the open-economy IS-LM-IP model) to analyse what will happen to income, the exchange rate, and the trade balance (net exports) in response to the following shocks. Carefully explain the adjustment process in each case.
a) A significant fall in the foreign demand for Australian minerals export.
b) The Abbott government implements a fiscal expansion program, other things held constant, and the Reserve Bank of Australia keeps the interest rate fixed.
Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?
exchange economy with two goods x,y. Person A has 16 units of x and no y; B has 4 x and 40 y, Ua(x,y)= x(^1/3)Y(^1/9) Ub(X,Y)= X^(2/3)Y(^1/9) 1) the demands for goods x and y for both persons. 2)state the conditions for market equilibriumeral.
In your concluding paragraph, state whether you agree or disagree with the economic article identified in Question 1. Explain how the concept that you identified in Question 2 could affect the U.S. economy.
Research Paper Topics - Trade policy- Comment on Australia's trade policy (both positive and negative impacts on Australian economy, industries and employment)
What factors make it difficult to determine the unemployment rate? Why is unemployment an economic problem? What are the non-economic effects of unemployment
Explain how each of the following scenarios would cause the aggregate demand, short-run aggregate supply, and/or long-run aggregate supply.
Should tariffs be used to protect American-made products from foreign competition? Why or why not? Why are some foreign products cheaper than American-made products? Is it proper for the United States to use a tariff to punish foreign producers
Many scholars have argued on the existence of business ethics, instead favoring the term corporate social responsibility (CSR). Write a three-page research assignment on CSR. In this assignment, you need to:
Went to consumers need for product is urgent and cannot be put off what is the demand for the product?
If the input costs are rising at teh same time that consumer income is falling, what will happen to the equilibrium price and quantity?
How could war stimulate the economy? Explain in detail, making sure to mention the impact government purchases have on Gross Domestic Product (GDP).
Compute the price-cost margin for every firm and indicate which has more pricing power and why.
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