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examine the factors that influence a country s exchange ratesuppose and define a floating exchange rate the major issue here is to outline the
analyse the possible effects of speculation on exchange ratesdefinition of speculation in currencies as betting on the appreciationdepreciation of a
explain how a country can peg fix its currency to another currencyexplanation of a peggedfixed currency should centre on how the central bank uses
distinguish among the terms of trade and the balance of trade for a countrydefinition of terms of tradea the amount of a given amount of export goods
what are the possible advantages of free tradefirmsa specialisation and enhanced use of comparative advantageb possibility of advantages of
what is meant by dumpingdumping is when a producing country dumps goods on foreign markets at a price lower than either the price on the home market
explain why subsidies to domestic firms act as a trade barriera trade barrier is broadly explained as any market intervention whereby the ratio of
is there a trade-off between inflation and unemployment the keynesian side posits that policies can indeed be used to stimulate demand - demand-side
explain how monetary and fiscal policies can be used to alleviate lessen dissimilar types of inflation define monetary and fiscal policies and
what are the causes of inflation define inflation as a steady enhance in the general price level then there are well two and a half basic reasons1
how might governments lower the natural rate of unemployment an easy way to organise the answer is to separate possible solutions into two broad
what are the main causes of unemploymenttwo main paths are available demand-deficient unemployment and real wage unemploymentafter explaining
explain how unemployment could be voluntary or involuntary start off with a definition of the labour force and then outline the proportion of the
what are the economic and social costs of high inflation levelshigh inflation will have serious redistribution costs make distortions to the economy
explain what the natural rate of unemployment isit is necessary here to include a solid explanation based on economic concepts the natural rate of
discuss whether inflation or deflation is the more serious problem for an economyinflation is a consistent general enhance in the price level whereas
briefly explain the main macroeconomic objectives of governmentsdefinition of macroeconomic issues growtha enhance in national
why is investment so important in an economydefine investment as an enhance in capital stock and link this to broad macro issues future output
what are the main weaknesses of using demand-side policiestrade-off issuesa growth and low unemployment often come with inflationb government
explain crowding out and why it may be considered important for policy makerscrowding out refers to how enhanced government borrowing real borrowing
how might an accurate value for the multiplier aid a government in setting fiscal policyany given multiplier will enhance national income at a given
explain how automatic fiscal stabilisers may help to lower fluctuations in the business cycledefinition of automatic stabilisers as built-in to the
why is it so difficult for government to achieve all macro objectives simultaneouslyspecifically showing possible trade-offs iea stimulatory policies
explain the link between the rate of interest and inflationinterest can be explained as the price of money - more expensive money will lead to few
explain why goods provided by natural monopolies are often publicly ownedit would seem that most normal monopolies come with high msb and also that