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What are the main accounts of the bop

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Questions -

Q1. What are the main features and differences between Endogenous Technological Change and increasing Marginal Returns Models? Which do you prefer and why?

Q2. What are the causes of major changes under flexible exchange rates systems?

Q3. What is fiscal stabilization policy? How is this implemented and what are the conditions that influence its implementation?

Q4. Last July 13 the Bank of Canada increased interest rates by 100 basis points. What type of Monetary Policy stance does this move represent and usually under what conditions?

Q5. Over 2017 - 2019 disinflation in Gryffindor reduced inflation by 6 percentage points but the cumulative loss of real GDP caused by that disinflation was equal to $60 billion and potential GDP at that time was equal to $500 billion. Please calculate the sacrifice ratio and briefly explain the results.

Q6. Economists especially Milton Friedman argue that sustained inflation is a monetary phenomenon. Please explain using the Quantity Theory of Money equation its meanings and the implications to economic policy making.

Q7. What is GDP? How is it calculated? Show the major components by showing the 2 major approaches and their formulas.

Q8. What are the main accounts of the BOP? How does higher GDP growth of USA affect the BOP of Canada?

Reference no: EM133219330

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