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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.
Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand curve indicates that it can sell as much as desires at the current market
The hypotheses are: The null hypothesis, infers that a unit root exists, whereas the alternative hypothesis, concludes that there is no root. Decision rule:
Importance of macroeconomics models Using the models we can, for example, analyze what happens when the government increases consumption, when the central bank increases the tar
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Determine the Long-term direct investment flows Long-term direct investment flows are when investors buy physical assets like land or capital equipment in another nation. This
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the production of 200 units of consumer goods and 300 units of capital goods : a) indicates full employment b) may be a result of unemployment c) may be impossible for now d)
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