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Compare and contrast this change within the framework of the Keynesian AE and the ADAS models.
If output is currently below the full-employment rate, what will direct the economy to full employment in the Keynesian model?
The Great Depression undermined the credibility of the classical view. Can you explain why both of these phenomena occurred?
Why does an increase in aggregate spending lead to an equal increase in real GDP as long as output is at less than fullemployment capacity?
What is the multiplier principle? What determines the size of the multiplier? Does the multiplier make it more or less difficult to stabilize the economy?
What do Keynesians think cause fluctuations in output? What must be done to maintain fullemployment capacity?
What does it mean to specialize according to one's comparative advantage and trade internationally and an example of a business using this principle?
What determines the equilibrium rate of output in the Keynesian model? Explain why an equilibrium level of output will continue to persist.
What effect did the events of September 11, 2001, have on aggregate demand, aggregate supply, and the long-run potential real output of the United States?
Construct AD, SRAS, and LRAS schedules that reflect these conditions. What will tend to happen to resource prices and interest rates? Why?
Explain the economic cost of most international trade less than the economic benefit of that trade for both the companies
What would you expect the impact of this decline to be on aggregate demand and output in the short run?
The Organization for Economic Cooperation and Development (OECD) provides some of the best data and statistics available for comparative international work.
Discuss the historical process of trade barrier reduction. Does anything further need to be done to reduce these barriers?
Problem: Discuss the ideas in on: "Made in China". Discuss both In-sourcing and Outsourcing.
Despite that it did present a remarkable solution from the theoretical point of view by adopting neoclassical price mechanism into International Trade Theory.
Economists are in almost universal agreement that Free Trade is good for all countries.
The following table describes the production possibilities of two cities in the country of Baseballia:
a) What is the opportunity cost of 1 unit of fish in Kiribati? Show calculation. b) What is the opportunity cost of 1 unit of fish in Tuvalu? Show calculation.
(Reasons for international specialization) What determines which goods a country produce and export?
Should we limit foreign trade to nations that engage in "fair trade" by giving us access to their domestic markets and reciprocal import tariff reductions
Discuss advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.
Describe the difference between average revenue and marginal revenue. Why are both of these revenue measures important to a profit-maximizing firm?
What is Michelle's opportunity cost of producing potatoes? What is Michelle's opportunity cost of producing chickens?
In the Ricardian model, everyone seems to benefit from trade. However, the Heckscher-Ohlin model seems to show that some lose from trade as well.