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Assume a country is in a flexible exchange rate regime. Now suppose that the world interest rate falls. Discuss what the policy makers must do to maintain the pegged exchange rate. What is the effect on domestic output, exports, and imports. Show graphically using the IS-LM-IP model.
Explain how the US government managed to accumulate a debt of over 14 trillion. To whom does it owe this debt? Is the debt a burden on future generations?
Explain the three types of unemployment and what types of government programs would be most effective in combating each type of unemployment?
There is a stretch of I-81 in Virginia where there is a single cellular carrier that has roaming charges for any cell phone calls made in its territory. It is the only cellular carrier in that territory, and it is confident that no other cellular ..
Identify two government programs, at a national level, that you would definitely change. Explain why and how you would change them. What are the marginal benefits and marginal costs of each changed policy to you
a firm that you have done business with recently. What industry does this firm belong to For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under What are the names of other firms in this in..
Explain why the payoff matrix in indicates that firms A and B face the prisoners' dilemma. from the following payoff matrix, where the payoffs are the profits or lesses of the two firms, determine (a) whether firm A has a dominant strategy, (b) wh..
The long-run growth rate of potential output is 3% per year, velocity is constant, the money supply grows at a rate of 5% per year. Initially, actual output equals potential output. The nominal interest rate is 3.5%. Prices are sticky in the short..
Depends on the data above, describe why public health officials generally advocate the use of cigarette taxes to reduce teenage smoking.
The Administration understood that the recovery would be difficult precisely because many of the usual drivers of growth were missing. That is why we included $266 billion of additional temporary recovery measures in our 2011 budget. Congr..
A change in reserve needs of depository institutions is the policy tool most frequently used through the Federal Reserve to influence economic activity
What is the difference between supply-side and demand-side economics? How do the above concepts fit into these definitions? Which do you agree with most as a solution to stimulating growth, and why?
Describe the industry equilibrium price/output combination both graphically and algebraically. Calculate the level of excess supply (unemployment) if the minimum wage is set at $7 per hour.
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