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Problem
1. Discuss several economic events that would increase a country's willingness to trade.
2. Assume that demand increases for a country's export good. Will there be a different qualitative effect on the country's terms of trade if the country is "large" rather than "small"? Why or why not?
3. Suppose that country I increases its willingness to trade at the same time that trading partner country II decreases its willingness to trade. What can be said about the resulting impact on the terms of trade and on the volume of trade?
Suppose the supply for optometrists is given by LS= -6 + 0.6W, while the demand curve is given by LD= 50-W. Also, assume that the government imposes a payroll tax equal to $8 for each optometrist hired by a firm. a. Find the equilibrium wage and e..
Explain the factors determining the country's productivity. How the country's policies influence its productivity growth? How the country's financial system is related to key macroeconomic variables?
Consider a divorced individual who earns $26,000, has two children, pays $4800 in child care expenses, $2000 in mortgage interest payments, and $4500 in medical expenses.
Which statement is not true regarding risk? the expected return is usually not the same as the actual return a key to assess risk is determining how much risk an investment adds to a portfolio some risks can not be decreased or mitigated by the fina..
inflation problems. search the internet for the 2013 economic report of the president and use the gdp deflator price
What is the rationally expected inflation rate and the answer to this point is functional to better understand the next ones: (b) and (c)
Suppose that you decide to buy insurance and the marginal benefit with insurance is MB=80-10E.What happens to the optimal level of precaution? Explain.
Assume all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on the size of the federal deficit.
Re-estimate the equation to see if there is a quadratic effect for income and paste the output in your assignment.
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
What three tools could the Fed use to achieve this goal? Be specific in your answer and discuss the implications of this policy.
Provide an example of how fiscal also monetary policies compliment or work against each other.
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