How did it all go so bad so quickly and who was responsible
Problem
How did it all go so bad so quickly? Who was responsible? What did you learn about the macroeconomy, money and banking and what went wrong in 2008?
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Given this information, what type of exchange rate and/or fiscal policy can be used to achieve simultaneously these two goals? Explain.
Explain how a higher labour productivity increases the output level. Also explain how, conversely, a higher output level increases labour productivity.
After the pandemic, would we expect those economies to grow faster or slower than the US economy? Explain.
Suppose also that the Rupee-Dollar exchange rate today is 84/$. If the forward rate for one year from today is 88/$, what must the US interest rate be?
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Identify and explain if any of these countries have an absolute advantage in the production of wheat and wine.
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