Question 1

Explain, in words and on a graph, how a fiscal stimulus works in a Mundell-Fleming model with a fixed exchange rate. Is this effective fiscal stimulus policy?

Question 2:

Explain, in words and on a graph, how a fiscal stimulus works in a Mundell-Fleming model with a floating exchange rate. Is this effective fiscal stimulus policy?

The U.S. (Home country) and Japan (Foreign country) are trading with each other in the auto industry. Both are large countries in this market for cars. The U.S. imports cars from Japan.

The U.S. demand curve for cars is given by:             D =210 – 30P

The U.S. supply curve for cars is given by:        S = 30+ 30P

Japan’s demand curve for cars is given by:        D* = 50 – 10P

Japan’s supply curve for cars is given by:           S* = 30 + 10P

Answer the following questions.

The U.S. imposes a tariff of $1.50 per unit on car imports.

1. Compute the new world price of cars.
2. Compute the new domestic price of cars (tariff inclusive price of cars) in the U.S.
3. After the tariff is imposed, compute the new quantities of supply, demand, and imports for the U.S.
4. After the tariff is imposed, compute the new quantities of supply, demand, and exports for Japan.

Why would a firm research the marketing infrastructure of a foreign market prior to entry?
a. To quantify the potential demand for the firm's products or services.

b. To determine whether its prices will be competitive.

c.Marketing infrastructure is more of a concern of the local partner so research ahead of market entry would generally not be required.

d.To better understand the wholesale and retail sectors, local marketing regulations, and distribution options.

e. Primarily to understand the role of the media including TV, print, and Internet.

Why does economic development often coincide with rapid rural -urban migration? Discuss the problems to development created by rapid rural-urban migration

A monopolist faces 300 customers divided into 3 different groups:

1. High-Demand customers each have a demand function given by

Q_H = 18 - P.

2. Medium-Demand customers each have a demand function given by

Q_M = 16 - P.

3. Low-Demand customers each have a demand function given by

Q_L = 14 - P.

There are 100 customers of each type (N_H=N_M=N_L=100).

The marginal cost of producing (one unit of) the product the firm is selling is constant at MC = $4. There is no fixed cost.

1. Determine the optimal two-part tariff for this firm and the resulting profits (it can only select one two-part tariff that is applied to all customers).

2. Do the same for N_H=N_L=50 and N_M=200. Explain briefly the difference between the results in (1) and (2).

1. At the current level of output, suppose the actual price level is less than the price level that individuals expect (i.e., Pt < Pet).

We know that:

A. output is currently below the natural level of output.

B. the interest rate will tend to rise as the economy adjusts to this situation.

C. the nominal wage will tend to increase as individuals revise their expectations of the price level.

D. any subsequent reduction in the aggregate price level will cause an increase in the real money supply and a rightward shift in the aggregate demand curve.

E.none of the above

2. Suppose the minimum wage increases. Given this event, we would expect which of the following to occur?

A. no change in the real wage in the medium run

B. an increase in the aggregate price level as output decreases

C. an increase in the interest rate in the short run

D. all of the above

Identify a major national economic problem that needs fixing. Consider how you would measure the relative success of any measure(s) to fix the problem you identified (e.g., more people being put to work, higher household income, fewer people under the poverty level, increased GDP, greater economic growth, higher overall math/science achievement among high school students, lower pollution, etc. - MAKE SURE you come up with a few of your own measures!). Now, propose fiscal and/or monetary policies to fix the problem you've identified and explain IN DETAIL how you believe your policy recommendations would remedy the problem you identified AND how you would measure the relative success of YOUR economic policy recommendations.150-200 words

A university is trying to determine what price to charge for tickets to football games. At a price of ​$22 per​ ticket, attendance averages 40,000 people per game. Every decrease of ​$22 adds 10,000 people to the average number. Every person at the game spends an average of ​$3.00 on concessions. What price per ticket should be charged in order to maximize​ revenue? How many people will attend at that​ price?

Please show which are which above

5.   Refer to the above table and answer the following questions:

      Consumption expenditure is $________

      Investment expenditure is $________

      Government purchases of goods and services is $__________

      Net exports is $_____________

      GDP is $_________________

Liat 3 mental issues that you perceive to be men's issues? Why are these perceived to be men's issues? How might these issues affect women directly or indirectly?

Question 2

1. Contrast “New-Classical ” and “New Keynesian” models on the relationship of money and output in the short run.

2. Appraise the following statement,

1. “Both new Keynesian and new classical economists recommend against using the stabilisation policy to reduce output fluctuations”.
2. “Monetary policies may not able to fine tune the economy due to long and variable lags”.

1. Assume that a country's production function is Y = AK^0.2L^0.8. Population grows at 4 percent and capital depreciates at 2 percent per year. Technology grows at 1 percent a year. Capital is paid its marginal product. A=100 and savings is 20%.

a) What is the steady-state level of capital per effective worker?

b) At the steady-state what is the marginal product of capital?

c) At the steady-state what are the income per effective worker, consumption per effective worker, and investment per effective worker?

14. Betty consumes leisure and food and both are normal goods. a. Show graphically what would happen to the number of hours that Betty will work if she sees an increase non-labor income. b. Show with a graph and explain how Betty’s hours worked can decrease if she sees an increase in wages.