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Question: The policy trilemma: One could make a reasonable case that the United States in the past decade has been able to achieve all three goals of the policy trilemma: it sets its own monetary policy, it has open capital markets, and it has experienced a relatively stable exchange rate. Yet the chapter claimed that an open economy can only achieve two of these policy goals. How do we understand this apparent contradiction?
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 free trade. b.) Now suppose that a tariff is place on the importation of wine into the United States to protec..
What will price and ouput be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residualdemand curve that it faces and calculate ots profit-maximizing output and price.
During the Great Depression, the US economy experienced a falling price level and declining real GDP. Using an AD-AS diagram, graphically illustrate and explain how this transpired.
Find a recent ( since the start of obama's first term- January 2009 ) news or magazine article or podcast from a reputable/verifiable source that relates to material from this class.
How much do you need to invest now at an 8 % interest rate compounded semi- annually in order to have $10,000 in 5 years?
How much will the gasoline have to cost in order for the buyer to recover the extra investment in 5 years at an interest rate of 0.75% per month?
Compare the primary individual factors that influence demand, and explain the significant ways in which each affects the demand curve. Provide at least one (1) example of these factors to support your rationale.
What was the response of the fed bank reserve to the grate recession and did it work?
Draw the new budget constraint on the same axes as a dotted line. Label the new intercepts.
To provide goods and services society feels desirable, governments often face a choice between equity and efficiency. Efficiency is a situation which a good or service is provided with minimum amount of waste, effort and expense.
Suppose nominal GDP in 2005 was $14 trillion, and in 2006 it was $15 trillion. The general price index in 2005 was 100, and in 2006 it was 103. Between 2005 and 2006, real GDP rose by what percent?
What are the roles of transactions costs, economies of scale, economies of scope, and economies of team production in the design, manufacture.
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