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Assume that capital is perfectly mobile, the price level is fixed, and the exchange rate is flexible. Now let the government increase purchases. Explain first why the equilibrium levels of output and the interest rate are unaffected. Then show whether the current account improves or worsens as a result of the increased government purchases of goods and services.
During the course of one day, airlines cut fares on nearly 35,881 routes. (a) Briefly explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most res..
q1. write a 1050- to 1250-word report in apa format advising the president of rodamia making recommendations for
While waiting for their buses to leave, they decide to browse your school bookstore and buy some items that catch their eye. How would this affect the store’s inventories?
4.5 Grocery store chain often set consumer-specific price by issuing frequent –buyer cards to willing customers and collecting information about their purchases. Grocery chains can use that data to offer customized discount coupons to individuals. Wh..
Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping? How does technological progress shift the labour demand curve? Professors, lawyers and doctors receive similar amounts of education, why are pro..
Firms that can identify two types of consumers can price-discriminate perfectly. Firms can price-discriminate only if there is zero competition in the market. Firms that price-discriminate will not reach higher profits.
This unit has talked largely about economies of scale at the plant or unit level. What do you see as the difference between the unit level economies of scale and the firm multiple plants, movie theaters, restaurants, etc. Is there a clear distinction..
critically discuss the pros and cons of this contractual arrangement vis-a-vis the alternative of outsourcing the teaching to an outside fi rm.
Illustrate what is the minimum number of words per minute a student would have to read in order to get the award
q.suppose that a professor p has recruited a teaching assistant mr. a. professor p needs to increase her payoff
The expected salvage value of the furniture is $5,000 in 2015. Determine the recovery period for the furniture and its depreciation deductions over the recovery period.
Our recent recession seems to demonstrate again that expenditures and incomes depend on each other. If markets do not self adjust, how can a decline in spending lead to a negative process that ruins an economy? (Consider referencing the "Keynesian Cr..
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