Assume that there are exactly two countries: The United States
and Australia. Also assume that these countries’ economies are
closed (i.e. they do not trade or otherwise interact with each
other) with one notable exception: The U.S. exports plastic to
Australia, and Australia exports iron ore to the U.S. For this
question, I will abbreviate the currency of the U.S. as USD and
that of Australia as AUD.
a.Suppose that the U.S. imports 100,000 tons of iron at a price...
Complete both parts of this question. Both the Federal Reserve
in the United States and the European Central Bank monitor growth
in the money supply over time, but use nominal interest rates to
implement monetary policy. Provide an example of a situation in
which these two approaches to targeting require different central
bank responses. Provide an example in which these two approaches
are compatible. [Hint: prices are sticky in the short run, so
expected inflation and actual inflation may differ.]...
Assume that both the United States and Germany produce beef
and computers. The U.S. can produce 200 computers or 1,000 pounds
of beef per day. Germany can produce 500 computers or 250 pounds of
beef per day.Graph the PPCs for each country, putting computers on the
horizontal axis. Then identify the slopes of the PPCs. What does
the slope represent?
Explain the different events that led to the entry of the United
States into both the First World War (1914-1918) and the Second
World War (1939-1945). Also pay attention to what specific role the
US played in bringing these two wars to an end.
The table below for the United States and Australia shows
maximum feasible production rates per acre of Wheat if no Canola is
produced and maximum feasible production rates per acre canola of
if no wheat are produced. Assume that the opportunity costs of
producing these goods are constant in both countries.
Output per Acre with Trade
United States wheat 80 tons canola 48 tons Australia wheat 55
tons canola 70 tons
For the United States, the opportunity cost of 1...
Both the United States and India produce two goods: tractors and
rice. The IJnited States can produce either 8 tractors or 16 pounds
of rice. India can produce either 4 tractors or 20 pounds of rice.
Rice Country (pounds) Tractors Now suppose that both countries open
up to trade, and the United States and India completely specialize
in the production of the good for which each has a comparative
advantage. Select... should produce rice. should produce tractors,
and Select... United...