Relation between employment and efficiency
Problem: Explain the relation between employment and efficiency.
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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
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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 production possibilities frontier. What are the main assumptions?
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.
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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.
A. Briefly discuss the economic reforms that have been taking place in latin America since the late 1980's B. According to the Economic freedom of the world report which of these counties appear to have been successful in recent years?
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