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Consider an open economy like Australia with free capital mobility and a floating exchange rate. Using the Mundell-Fleming IS-LM model Explain how a fiscal policy expansion can stimulate the economy and how it impacts on the balance of payments.
Consider the following supply and demand schedule for steel: Pollution from steel production is estimated to create an external cost of sixty dollars per ton. From an economic point of view, what is the best solution to this environmental conflict of..
Use the concept of a production possibilities curve to illustrate the choice between consumption of lifetime earnings during the period when the income was earned (horizontal axis) and consumption during retirement years (vertical axis).
What measures the goodness of a moving average forecast? Given the time series below find the 10th period’s forecast and the valve of MSE using n=3 and simple moving averge. period sales 1 33 2 35 3 28 with figure
What are the limitations of the Specific Factor Model? In what ways does the Hecksher-Ohlin Model complements the Specific Factors Model? Given the limitations of the Ricardian Model, in what does the Hecksher-Ohlin Model complements the Ricardian Mo..
Each of the estimated coefficients statistically significant at the 95 per cent confidence interval. What is the optimal output level.
The following ricardo type table shows the labor input required per unit of output in each of the two industries in each of the two countries. Suppose that Germanz is a much larger country in terms of production and income than the UK. In this situat..
An improvement in production technology for a specific good will cause a(n):
Discuss the current issue of illegal aliens and the impact this has on the U.S. health care system. Should the taxpayers pay for health care for individuals who enter this country illegally? How do emergency rooms and hospitals protect their fiscal s..
Specific identification, because it correctly identifies the actual item sold and so the actual cost is recorded on the income statement.
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Draw an AD-AS diagram to show the short-run effect of this optimism on the economy. Label the new levels of prices and output.
Consider a firm with the following cost function: TC = 8+5Q+2Q2 , the marginal cost associated with this function is MC = 5+4Q.
Frequently result from radioactive transportation accidents due to the large number of such shipments
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