Explain the production possibilities frontier
Problem: Explain the production possibilities frontier. What are the main assumptions?
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Is the use of the least-cost input combinations a necessary condition for profit maximization? Is it a sufficient condition? Explain. Explain why the MP/P relation is deficient as the sole mechanism for determining the optimal level of resource empl
In the last scenario, if the interest rate on five-year government bonds was 11 percent per annum in Italy and 8 percent per annum in Germany, would the lira/exchange parity be credible? Have you assumed that interest rates and expected exchange r
“Pay for performance” means that employee compensation closely reflects the amount of value derived from each employee’s effort. In economic terms, the value derived from employee effort is measured by net marginal revenue produc
a. What is the equilibrium level of income? b. If the full employment level of income is 3,000, is there a recessionary or inflationary gap? If so, how much?
Problem: Explain the relation between employment and efficiency.
Suppose that the Fed perceives inflation on the horizon and decides to pursue a contractionary monetary policy. Explain the effects of this policy on the exchange rate of the dollar.
I want to know as much as possible about India's policies towards exchange rates, foreign trade, domestic monetary systems and foreign policy. Also expand into how the political situation in India has effected the country economically.
Q1. Briefly state the advantages and disadvantages of foreign exchange rate targeting. Q2. Briefly state the advantages and disadvantages for each tool the Fed can use to manipulate the federal funds rate.
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