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Suppose that PPP does NOT hold.
1. Explain the role of movements in the relative price of non-traded goods for real exchange rate fluctuations, using a simple decomposition of the real exchange rate into two parts to illustrate your answer.
2. How does a real exchange rate depreciation, due to any source, affect equilibrium real income, the home equilibrium interest rate, and the home price level? Use diagrams to illustrate your answer.
The monopolist has a constant marginal and average total cost of $50 per unit. Find the monopolist’s profit – maximizing output and price.
a rural utility company provides standby power to pumping stations using diesel-powered generators. an alternative has
Using aggregate demand, short run aggregate supply and long runaggregate supply curves, explain the process by which each of the following economic events will move the economy from one long run macroeconomic equilibrium to another.
I have chosen to export beer to Japan. Japan continues to be one of the top generally beer-consuming nations in the world and consumers have high disposable income and there is an increasing demand for sphere beers in Japan.???
What happens to his consumption of Y? Calculate the coefficient of price elasticity and of cross price elasticity. Also draw the demand curves for X and Y, noting the equilibrium points for this consumer before and after the price change in X.
Gross national product measures the value of ________, while gross domestic product measures the value of ________.
Calculate the slope of the AD curve - Explain why the AD curve has the slope you calculated as a result of the "wealth effect".
Suppose a risk averse agent. Explain how many units of the contract will the agent buy if the price is q=k.
in order to financially stimulate the nation the federal government injected 900 billion dollars into the economy.
Use the above data to answer the following questions-If the price of entertainment increases by 2 percent, what will happen to the quantity of food demanded? Please be specific
Compute the annual lease payments. Remember, the payments are to be considered at the beginning of each year - annuity due.
If the saving rate does not change, but the population growth rate rises, what will happen with Avataria's GDP per capita What will happen with its GNP per capita How do these results contrast with the Solow model presented(b) Now assume that the..
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