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The theory of purchasing-power parity primarily explains1. why a change in the real exchange rate changes a country's net exports.2. why trade deficits tend to move to zero over time.3. how foreign prices affect domestic prices.4. the determination of the real exchange rate.
Explain how would your answer change if you also noted that the biggest declines in the unemployment rate occurred.
what is current investment according to the Classical economists? Suppose consumption falls by $500 billion what will happen to savings and investment according to the classical economists?
Suppose that an raise in a household's disposable income from $40,000 to $48,000 leads to an raise in consumption from $35,000 to $41,000,;
Each demand curve must eventually hit the quantity axis because with limited incomes there is always a price so high that there is no demand for the good.
Make the categories and terms of the three basic demands for money and what the number of categories of the money supply are.
Currently, the island of Guam does not have a minimum wage need but uses the United States minimum wage as a reference. Give a theoretical justification for why imposition of a $5.15 minimum wage.
The World Bank is at present advising newly industrialized countries on how to encourage growth and they have asked for your help.
Bavarian Crystal Works designs and produces lead crystal wine decanters for export to international markets-What is the optimal level of production of wine decanters?
Illustrate what will happen in the short run and long run to the world real GDP and the price level. Moreover, describe what policymakers could do after this has happened.
Describe supply and demand, major reason(s) for the price increases and fluctuations, and international factors, if applicable. You should use at least four references.
Determine whether each of the following increases, decreases, or remains unchanged in the short run: the market interest rate, the quantity of money demanded, investment spending, aggregate demand, potential output, the price level, and equilibriu..
A person desres to accumulate $18500 over a period of five years from now so that a cash payment can be made foe a new car. to have this amount when t is neede, annual payments at the end of each year will be made to a savings account that earns 8..
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