Reference no: EM13200192
1. Using short run Aggregate Supply and Aggregate Demand curves, show how the following policies can be expected to affect the price level and real income (or real output).
a. an increase in the Federal Government Budget Deficit.
b. an increase in oil prices.
c. an increase in the productivity of workers.
2. Show how a decrease in the income tax rate will both increase the wage received by workers and decrease the wage paid by employers. Use a supply and demand graph of the labor market.
1. In Peru each worker can produce 30 bushels of corn per year, while in Colombia each worker can produce 40 bushels of corn per year. This implies that Colombia should specialize in corn production when trade is opened up between these countries. True or False? Explain.
2. Suppose that France and England have the following production relationships for one unit of labor. Each country has 200 units of labor. Assume that opportunity costs are constant.
Wine Bread
England 3 4
France 2 1
a. Which country has the absolute advantage in wine production? Explain.
b. Which country has the comparative advantage in wine production? Explain.
c. Draw the PPF for France.
d. Show how France can be made better off with trade.
e. Show how England can be made better off with trade.
3. Using graphs, describe the impact of a tariff on the price, domestic quantity demanded, and domestic quantity supplied of cotton.
4. Describe the possible effects of a depreciation of the U.S. dollar on the trade deficit, aggregate demand, real GDP and the price level.
5. Using graphs, describe how an increase in the required reserve ratio will affect the value of the U.S. dollar relative to the Japanese yen.
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Whether to facility or sell and rent the building
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Explain the kinetic energy of a moving object varies
: The kinetic Energy (K) of a moving object varies jointly with its mass (m) and the square of its velocity (v). If an object has a mass of 22.5 kilograms and moving with a velocity of 20 meters per second has a kinetic energy of 4500 Joules
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What is the percentage change in the price
: Consider a 6-year coupon bond with 4% annual coupons and a $1,000 face value. How much will the price of the bond change if its yield to maturity decreases from 7% to 6%? What is the percentage change in the price?
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What is the npv of the opportunity
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How france can be made better off with trade
: In Peru each worker can produce 30 bushels of corn per year, while in Colombia each worker can produce 40 bushels of corn per year. This implies that Colombia should specialize in corn production when trade is opened up between these countries.
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Estimate the improvements will cause extra monthly expenses
: a contractor make improvements to a business rental for a fixxed price of $64,000. With this improvement you can obtain additional rent payments of $1,200 per month.estimate the improvements will cause extra monthly expenses of $50 for property ta..
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: Quadratic equations may be solved by graphing, using the quadratic formula, completing the square, and factoring. What are the pros and cons of each of these methods, when are they appropriate and which method is your preference?
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: Suppose you pay $45.00 for an electronic game that has been discounted 15%. What is the original price of the electronic game to the nearest cent?
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