Use IS-LM-PC framework to answer this question. Assume the country is in equilibrium, with output at potential and inflation stable. Suppose the Government decides to provide tax concessions for businesses to support the economic growth. What will happen in the medium term to inflation, output and investment?

What benefits are to be gained from countries producing according to the law of comparative advantage? What if a country is absolutely more productive in all goods?

If you owned a business and labour is the only variable input, explain:

a) using numerical examples, how decreasing marginal product of labour will affect your marginal returns and marginal cost.   2 Marks

b) how a change in marginal cost can affect your average total cost and your profit.  

Alex has a lexicographic preference for two goods. Consider a bundle, A = (3, 5).
1. Illustrate the better set for the bundle A on the graph.
2. Is the better set you found in part (A) convex? Explain.

What equation does the FED use to set R according to π? What does m=0.5 mean?

What is the steady state and how it is determined in AS-AD model?

A small school has 100 students. You have been commissioned school photographer.

1. You have been offered to photograph a model action shot for a salary of $100 on the same day as the school photos are scheduled. You can’t do both. What is the limited resource, and as what kind of cost do you consider the missed salary of this photoshoot?

2. Without calculating, do you think parents’ price elasticity of demand for photos of their children is generally speaking price-elastic or price-inelastic (or neither/both)? Give your reason.

3. Since you are the only commissioned school photographer, you are a monopolist for this job. Suppose that you want to charge a uniform price per copy (i.e. be a single-price monopolist). From experience, you know that parents’ demand for copies of each child’s photograph is as given in the table below. Your marginal cost is constant at $2.00 per copy.

a. How much will you charge to maximise your profit? How many copies per child will you sell? Include the steps of your calculations.

b. What is your profit from this job? Show your calculations.

c. How much is the parents’ consumer surplus? Show your calculations.

need the answers immediately!

a. Explain with a graph the effect of a government budget deficit in market for foreign-currency exchange!

b. Explain with a graph the effects when government imposes import quota on imported goods in market for market for foreign currency exchange!

c. Explain with a graph the effect of capital flight in a country!

Question 3: In the light of Purchasing-Power Parity theory explain how inflation rate a county affects its nominal exchange rate?

Question 4: Explain why and how net exports and net capital flow are related to each other. Does trade deficit necessarily create trouble for a county’s economic growth? Discuss.

Explain why and how net exports and net capital flow are related to each other. Does trade deficit necessarily create trouble for a county’s economic growth? Discuss.

Question 1: Elaborate with an example that how commercial banks create money under fractional-reserve banking. Elaborate the tools used by Central bank of a country to increase and decrease the money supply.

Question 2: Based on the material of the chapter “ money growth and inflation” of your text book explain how inflation starts in an economy? Why multinational companies feel unsafe to invest in those countries that have high inflation rate? Write your answer the light of your text book materials.

Based on the material of the chapter “ money growth and inflation” of your text book explain how inflation starts in an economy? Why multinational companies feel unsafe to invest in those countries that have high inflation rate? Write your answer the light of your text book materials

Derive and explain the key features of the flexible price monetary model. What, in your opinion, are its strengths and weaknesses?

1. Explain the two concepts of absolute and relative purchasing power parity. Do you believe that either absolute and/or relative PPP hold?

2. Why does the carry trade offer such attractive returns?

What are the determinants of demand for labor and supply of labor? How is the equilibrium wage rate determined in a labor market? Why a janitor gets lower wage than a heart surgeon? Why wage rates of all types of labor are lower in India and Pakistan than Saudi Arabia?