Monetary and Fiscal
Policy:
Explain with the aid of diagrams, how
an increase in Government spending in a small open economy affects
the Aggregate Demand curve:
a. Assuming a flexible exchange
rate
b. Assuming a fixed exchange rate.
NO HANDWRITINGS PLEASE. I CAN'T READ MOST OF THE HANDWRITINGS,
UNFORTUNATELY. THANKS IN ADVANCE FOR TYPING ANSWERS
Explain with the aid of a diagram how
a compensating wage differential can emerge in a competitive labour
market. Assume two occupations they are identical, except that one
has some undesirable characteristic. Also, assume all workers
dislike that characteristic equally. Assume the labour market is
operating at full employment.
Explain with the aid of a diagram how
a compensating wage differential can emerge in a competitive labour
market. Assume two occupations they are identical, except that one
has some undesirable characteristic. Assume that workers have
heterogeneous preferences vis-a-vis the undesirable job
characteristic.