With reference to an Injections and Withdrawals diagram.

If this diagram is illustrating a Recessionary Gap -

Explain in detailed what this diagram is outlining and what measures a Government may take to correct this economic situation and why Government may take these actions

Suppose that a typhoon occurs each year with a probability 1/12 and that a typhoon will destroy bananas from exactly half the farmers who choose to plant in a particular year. Calculate the expected profit of each farmer (including the planting costs) if exactly 110 farmers enter the market, and each chooses to plant 12,500 kgs of bananas. Explain why you would expect additional farmers to enter the market when typhoons are possible. Discuss what this implies for equilibrium prices in years where a typhoon does not occur.

In your own words, write about 200 - 400 words explaining why Alibaba is one of the most successful corporations in the world and what is their plans to keep on being a successful business for the upcoming years

1. a) How does a depreciation/devaluation of a nation’s currency operate to eliminate a deficit in its current account? (15 points)

b) How do you calculate that a particular currency is undervalued? Explain your answer with a numeric example. (15 points)

c) Explain the process how balance of payments deficit is eliminated in the long-run without government intervention both in the fixed (Central Bank keeping exchange rate fixed) and in the flexible exchange rates system. (20 points)

Where does the modern president get his/her power?

2 paragraphs

How will the future of how businesses will change and be doing business differently in the future after current crisis ends? Both domestically and globally.
Give examples.

3. Discuss why cash flow projections are so important to lenders and investors. What common mistakes are new entrepreneurs likely to make in their cash flow planning?

3. Assume the following information for the United States and Mexico. The United States can produce a maximum of 600 bushels of barley or a maximum of 600 bushels of corn. Mexico can produce a maximum of 200 bushels of barley or 400 bushels of corn. Which country has a comparative advantage in the production of barley? Which country has a comparative advantage in the production of Corn? Show your work for the calculation of opportunity cost. (4 Points)

4.According to the open economy macroeconomic model, which of the following statements is (are) correct?

(x)Capital flight requires the cooperation of the country’s airlines to move precious metals to safe areas.

(y)A large and sudden movement of funds out of a country is called capital flight

(z)Capital flight is frequently caused by an increase in political or economic instability

.A.(x), (y) and (z)

B. (x) and (y) only

C.(x) and (z) only

D.(y) and (z) only

E.(x) only

5.According to the textbook, which of the following statements is (are) correct?

(x)When a country suffers from capital flight, the exchange rate depreciates because supply in the market for foreign-currency exchange shifts right.

(y)When a country experiences capital flight its net capital outflow increases and its real exchange rate falls.

(z)When a country experiences capital flight its real interest rate increases as the country’s demand for loanable funds shifts to the left.

A.(x), (y) and (z)

B. (x) and (y) only

C.(x) and (z) only

D.(y) and (z) only

E.(z) only

6.According to the open economy macroeconomic model, which of the following statements is (are) correct?

(x)The usual effects of capital flight include a rightward shift of demand in the loanable funds marketand a rightward shift of the NCO curve,

(y)Capital flight typically causes a decrease in the domestic interest rate and an increase in NCO.

(z)Capital flight typically causes the real exchange rate of the domestic currency to depreciate because capital flight causes an increase in the supply of the currency in foreign currency exchange markets.

A.(x), (y) and (z)

B. (x) and (y) only

C.(x) and (z) only

D.(y) and (z) only

E.(x)only

. Consider a simultaneous move game between a teachers’ union and a university. Each agent can bargain hard (H) or accommodate (A). If both the parties bargain hard (H,H), each would gain nothing. If only one party bargains hard the accommodating party gets a benefit of $1 million while the bargaining party gets a $5 million, while if they both accommodate (A,A), they each get $3 million in benefit.

a. Draw the bargaining game in normal form (a matrix).

b. Does either player have a strictly dominated strategy? b. Find each party’s best response and the Nash equilibrium in pure strategies.

c. Is this Nash equilibrium Pareto efficient? Why or why not?

d. Describe a scenario in which the union might threaten an action that might ensure they get the outcome they would prefer.

Q.3    

Population growth in a country has increased. The higher population growth will lead to higher living standards. Comment on this statement with the help of a graph derived from the neoclassical growth model.                        

Assuming that the current crisis causes a decrease in the savings rate permanently.

In a neoclassical growth model, does this affects the growth rate of real output? Why or why not?                                

Q.4

As a response to current crisis, the US federal reserve has cut the interest rates. Now what will happen to the level of domestic output as foreign interest rates fallen. Assume that the home country has the flexible exchange rate system and perfect capital mobility? Explain your answer with the help of an IS-LM diagram.

Comment: Fiscal policy is more effective in increasing output, when prices and wages are variable as compared to when (i) Prices and wages are fixed, (ii) Prices are variable but wages are fixed. (Show using the diagram)

The domestic country is US in fact.