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Illustrate the problem for UK economic performance
This is a foremost problem for UK economic performance and helps elucidate the persistent deficit on the current account of balance of payments. UK has been a net importer of goods for many decades and though the UK has a strong service sector, British households have become dependent on imported goods. The main problem facing the UK is large current account shortages which have been incurred since 2000 have been financed by borrowing from emerging-market nations specifically China. This is not a maintainable position. If China were suddenly to decide to sell its holdings of financial assets, denominated in sterling that it has accumulated because of financing the UK's imports from China, the £'s exchange rate would go into free-fall. Though this would make Britain's exports more price competitive in the short run at least UK inflation would rise dramatically, unemployment will grow and standards of living will fall.
Following on papers by Pacala and Socolow,1 The Carbon Mitigation Initiative at Princeton University, http://cmi.princeton.edu/ has summarized carbon stabilization strategies at
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A profit maximizing firm has a production function such that: Y=K2L2 a) If P=10,rk=2,andWL=3 , what would be its optimum be? How can you show that it is a maximum? b) How
COMPARE AND CONTRAST CLASSICAL MODEL AND KEYNESIAN THEOTY
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state and explain two factors that cause the shifts in the balance of payments curve.
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With the aim of this project to observe the impact of oil price shocks on macroeconomic indicators, testing for causality between these variables will establish whether or not, oil
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