What is the optimal price cap for a government to impose on a monopoly? Why?

Discuss the effects of a shock that increases oil prices in the AD-AS model. Be sure to explain also the problem of stagflation.

• Discuss the effects of a shock that increases oil prices in the AD-AS model. Be sure to also explain the problem of stagflation.

Show graphically how an increase in US government spending affects the US trade deficit.

Answer All Parts Of The Following Question

A. ) Why, in the absence of technological change, will a county’s steady state growth rate equal its population growth rate?

B.) Show graphically and explain how a decrease in an economy’s depreciation rate will affect both output per worker in that economy and the economy’s long-run growth rate.

• In the New Keynesian Macroeconomics business cycles are driven by demand shocks, while in the New Classical Macroeconomics they are driven by supply shocks. Explain this statement using your knowledge of the AD-AS model.

1. Poverty is mostly a rural phenomenon in many developing countries. In view of this observation, what policies would you recommend for poverty reduction in developing countries.
2. In 1994, the United Nations provided the human security framework as a wider development and security paradigm. Describe any three of the key characteristics of this paradigm that makes it relevant to the contemporary reality.

Assume that investors have a choice between purchasing foreign bonds or domestic bonds. Why does exchange rate volatility cause countries to attempt to keep their interest rates in line with the interest rates of other countries.

Talk about amazon/jeff bezos and how it relates to privilege of the masculine and the ways in which subordination and exploitation are normalized.

Assume that both economies are in the steady state, and they reach an agreement that allows free movement of workers (not capital) across the two countries. What type of migration patterns would you expect across the two countries? Why? Who benefits and who loses from the migration flow?   

A) What is the difference between the marginal tax rate and the average tax rate? What is the difference between the statutory tax rate and the effective tax rate? Explain.

B) Compare and contrast tax deductions and tax credits in terms of both efficiency and vertical equity.

C)Is it possible for the government to impose a tax that causes the market price of the good to fall? Explain.

Consider an economy with two industries: auto manufacturing and aircraft manufacturing.

a. If workers in these two industries require similar amounts of training, and if workers at the beginning of their careers could choose which industry to train for, what would you expect to happen to the wages in these two industries? How long would this process take? Explain?

b. Suppose that one day the economy opens itself to international trade and as a result, starts importing autos and exporting aircraft. What would happen to demand for labor in these two industries? And as a result, what would happen to the wages in these two industries in the short run?

c. Do you think that the wage differential between these industries will continue over the longer time horizon? What would happen to the wages in these industries in the long term period? Explain.

a) Show that when relative PPP holds, r(au) = r(eu). Note: r denotes real interest rate.

b) Assume that worker productivity is expected to increase in European tradables sector in the future. Assume further that worker productivity is expected to stagnate in European nontradables sector as well as in all Australian sectors (tradables and non-tradables) in the future. What implication does this have on the difference between real interest rates in Australia and Europe?

c) Do real interest differences imply unnoticed profit opportunities for international investors? Explain.

There are two major exchange rate systems that a country can adopt: flexible and fixed. Historically we have had each of these in the U.S. Debate the advantages and disadvantages of each of these two systems. Which one do you think is superior?

8. In order to address its Federal Budget Deficit, the Greek Government increased the tax rate by 7% for the top 50^th percentile of household incomes. Included in this law, the government loosened capital requirements for banks lending to start-up businesses in its newly emerging biochemical sector. If all else remains equal, using the concept of Aggregate Demand and Aggregate Supply, what will happen to Greece’s GDP and Price Level?