Question 1 a) Discuss, using graphs, how the BP curve is derived. Which factors determine its...

Question 1

a) Discuss, using graphs, how the BP curve is derived. Which factors determine its slope and how?

b) Ireland is a small open economy can you explain how Irish BP looks like?

c) What are the factors that cause BP curve to shift and how?

d) What is External Imbalance? Show in graphs.

e) Assume that you have fixed exchange rates and a SOE with perfect capital mobility. Assume that you start from an external imbalance (take the case that r in the internal equilibrium is higher than what it should be). Describe the adjustment to external equilibrium.

Expert Solution

(a)

Rahul Sunny answered 7 months ago

Question 1 a) Using graphs and explaining the mechanisms, determine the equilibrium in an open economy...

Question 1 a) Using graphs and explaining the mechanisms, determine the equilibrium in an open economy using the model of the market of loanable funds and foreign currency exchange. Discuss how the interest rate, r, and the exchange rate, e, are determined. b) In the above, what happens when the government runs a budget deficit? c) In question (a), what happens if the government decides to implement an import quota? Briefly explain why a government would implement such a trade...

Question # 5 (17 marks) a. Briefly explain how the Bernoulli equation is derived. Discuss its...

Question # 5 a. Briefly explain how the Bernoulli equation is derived. Discuss its application in oil / gas productions, including its limitation. [4 marks] b. The water level in a tank shown in Figure Q5b is 20 m above the ground. A hose is connected to the bottom of the tank, and the nozzle at the end of the hose is pointed straight up. The tank cover is airtight, and the air pressure above the water surface is 4...

Define LM Curve and shoe how it derived? Explain in which direction and why LM curve...

Define LM Curve and shoe how it derived? Explain in which direction and why LM curve shifts when there is: a. An increase in money supply b. A decrease in money supply.

describe 2 different inductive factors which play a role in the PNS. which inductive factors derived...

describe 2 different inductive factors which play a role in the PNS. which inductive factors derived from glial cells?

Question-1 Briefly sketch how Bohr derived the Rydberg’s empirical formula for atomic spectra using mix of...

Question-1 Briefly sketch how Bohr derived the Rydberg’s empirical formula for atomic spectra using mix of classical mechanics and some ad hoc quantum assumptions. Indicate which steps in the derivation are motivated by classical mechanics and which are the quantum assumptions. Question-2 Compute ionization energies of H, He+ and Li++ ions (Essentially all of them are one electron atoms) from ground state. Explain the trend.

How is the Phillips curve derived and what are the implications for policy makers?

2. What is a yield curve? Identify the three economic factors that determine its shape. Critically...

2. What is a yield curve? Identify the three economic factors that determine its shape. Critically explain their roles.

IV. a. Derive the IS curve graphically by using the appropriate graphs that are appropriately linked...

IV. a. Derive the IS curve graphically by using the appropriate graphs that are appropriately linked up, and by explaining clearly what you are doing and why. b. Use the graph for the IS-LM model (in i-Y space only) with the original eqm Y being full employment (that is, YFE) to show what will happen if President Trump enacts (another) tax cut. What is the name for this type of policy? What type of gap will exist, if any?...

1.Explain the meaning of the velocity of money and discuss the factors upon which its magnitude...

1.Explain the meaning of the velocity of money and discuss the factors upon which its magnitude depends? 2. Elucidate the expenditure and income approach to measure GDP

1. Discuss how the following factors that determine labour productivity ? ----talents, education, training, and skills...

1. Discuss how the following factors that determine labour productivity ? ----talents, education, training, and skills of workers，and why do economists think highly of labour productivity? 150 word

Question