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What is the law of comparative advantage? According to law of comparative advantage, what should be distinguishing characteristics of goods a nation produces?
Why do we observe deficits or surpluses under flexible rates? Does this tell us something of the management of the rates?
How can government objectives such as the maintenance of full employment hinder the functioning of the gold standard?
Assume the following gold prices have been declared by the central banks. Calculate all possible exchange rates between the currencies.
What happens to the exchange rate, and how does this compare in magnitude to the change in US GDP?
Why would the balance of trade and the exchange rate necessarily improve from inflation that is higher than in other countries?
Can all countries collectively enjoy a surplus or must all surpluses and deficits cancel against each other? What does gold mining mean for the world's balance?
Why are transactions giving rise to the demand for a country"s currency recorded as debits or credits in the balance of payments?
What is the range of short term rates that have occurred in the United States? The range of long-term rates? What is a typical value for each?
Construct a game in strategic form to analyze the choices of Ivy and State, and identify the equilibrium/equilibria.
What subsidy is necessary to induce the monopolist to produce the socially optimal level of output?
Compute the values of the marginal propensity to save, s, and the multiplier, k. Derive the equation for the autonomous planned spending, Ap.
What is the opportunity cost (in civilian output) of a defense buildup that raises military spending from 4.4 to 4.7 percent of a $15 trillion economy?
Identify and indicate which treatment(s) are dominated for elimination. Rank the treatments by health benefit (more QALY = more benefit).
Draw a demand and supply graph to show the effect of this policy on the price of wheat and the quantity of wheat sold.
How much will this change inflation? What will the inflation rate be in the period of the cuts? What will this do to the economy?
What is private investment-Importance of PI (how changes in Fiscal policy can change it) in Pakistan-Private sector growth-Chancelling investment-Tariff.
List all the sources of growth developed in the article. Demonstrate mathematically that the Golden Rule savings rate for this economy is sg=2/5.
What sort of foreign investment would this represent? What would be the effect of this investment on U.S. GDP?
Discuss the impact capital inflows can have on a less developed country's growth and economic progress.
State three measures that the European Union could take to help Less Developed Contries. Comment on the effectiveness of each measure.
Analyze the major effects that government policies have on production and employment. Predict the potential effects that government policies could have.
What is country A's GDP? What is the composition of GDP by percentage? What is the GDP per capita? How does this relate to Keynesian economics?
Discuss what is, and what is not, included in calculating GDP. Discuss the limitations of national income accounting.
What impact did the Great depression have on the way government set policy? Why is it diffficult to test macroeconomic theories?