Use the AD/AS model to illustrate what happens to United States equilibrium GDP and the price level under the following scenarios. Also state what happens to national income and unemployment.

1. Canada, the number one destination of U.S. exports, goes into recession.

2. Energy prices rise throughout the economy.

3. Wages fall throughout the economy.

4. Congress passes a law lowering the income tax.

5. Businesses become more optimistic and raise their forecast ROI.

Include a caption! Beside or below each graph, explain why you shifted the curve.

global economic

Scenario 1: This case examines lobbying in the United States on the North American Free Trade Agreement (NAFTA). I argue that economies of scale and production sharing across borders create incentives for firms to seek regional trade liberalization. Statistical analysis demonstrates that sectors with these characteristics were more likely to lobby for free trade in North America; these sectors were also exposed to free trade more rapidly under the tariff-phasing schedule in the NAFTA treaty. However, corporate restructuring to rescale production for the regional market and to increase offshore assembly presented adjustment costs for U.S. workers, which created divisions between labor unions and their employers. I conclude that regional arrangements are an attractive mechanism to liberalize trade for firms in need of larger-than- national markets to take advantage of economies of scale or to develop production-sharing networks. Answer the following questions:

Q1. Identify the extent to which such agreement yield the benefits to the member states that they were originally intended.

Q2. Analyze the advantages of (NAFTA) as regional trade agreement.

Scenario 2: The Middle East and North Africa (MENA) has been slow to integrate, both intra-regionally and internationally. The Greater Arab Free Trade Area (GAFTA) saw tariffs between 17 Arab states rapidly decline from an average 15 percent in 2002 to 6 percent in 2009. But it has failed to bring down trade costs. In fact, it remains cheaper for some Arab states to trade with Europe than between themselves. Bilateral trade costs for industrial products between the Maghreb states and France, Italy and Spain is half that of trading with the GCC, Jordan, Iraq, Lebanon or Syria, according to trade policy and development expert Ben Shepherd. The cost difference also is negligible for trade between Egypt and the rest of MENA versus parts of Europe. The six member states of the Gulf Cooperation Council (GCC), which came into effect in 1981, are well ahead of the rest of MENA in terms of both intra-regional and international trade, however, despite its proximity, costs are still two-fifths higher than between France-Italy-Spain, according to Shepherd. And while intra-GCC trade has risen from $19.8bn to $65.4bn in 2010, it remains a small fraction of the GCC’s $1.3 trillion in total trade. The GCC customs union, which came into force in 2003, eliminates tariffs between the six states and enforces a common 5 percent tariff on imported goods across the region. Citizens also have freedom of movement across borders and the right to employment. Unofficially, the union also has seen the states coordinate in areas such as health, education, security and knowledge But non-tariff barriers have inhibited greater trade between the six states. A GCC railway has been mapped out but is yet to gain much traction, while other early plans for a combined value- added tax (VAT) were put on ice until recently, when the oil price crashed. Answer the following questions:

Q3. Measure the importance of regional trade agreement among GCC countries.

Q4. Explain the UAE type of economy, and how UAE facing competition.

The population of cities in the United States reports 30 crimes per hour. A researcher believes that regions lower in socioeconomic status will have more crimes per hour. A sample of cities crimes per hour are listed below. Compare these scores to the population (? = .05).

Will we need a one- or two-tailed hypothesis test?

State your null hypothesis

State your alternative hypothesis

Provide e t-obtained and the p-value

Did you reject or fail to reject the null hypothesis?

What can you conclude?

Calculate the 95% confidence interval for the sample mean

Calculate the 95% confidence interval for the difference between the means

Calculate Cohen’s d

1. Suppose the Federal Reserve Bank unexpectedly raises interest rates in the United States. How will this impact the foreign-exchange market?

1. How important are communications and computing technologies to the smooth functioning of the foreign-exchange market? If the technological advances of the past four decades were eliminated-for example, no PCs or satellite telecommunications-how would the foreign-exchange market be affected?

1. Do you expect the U.S. dollar to maintain its position as the dominant currency in the foreign-exchange market once the euro is fully established? Why or why not?

1. What would be the impact on world trade and investment if there were only one currency?

How can quality and cost escalation in health care system be improved in the United States? If you do a research for this question, please answer the following questions: 1- Why you will use a qualitative method in your data collections? 2- If you are conducting interviews for data collection what questions will the interview ask and what responses will it collect? expect that this stage of the assignment will run to about 400-600 words

In 2012, many unskilled workers in the United States earned the federal minimum wage of $7.25 per hour. By contrast, average earnings in 2012 were about $28.00 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $140.00 or more per hour.

Instructions: In parts a, c, and d, round your answers to 2 decimal places. In part b, enter your answers as whole numbers

. a. If we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage? .

How many times more productive was a $140-per-hour lawyer compared to a worker earning minimum wage? .

b. Assume that there are 20 minimum-wage workers in the economy for each $140-per-hour lawyer. Also assume that both lawyers and minimum-wage workers work the same number of hours per week. If everyone works 40 hours per week, how much does a $140-per-hour lawyer earn a week?

$ per week.

How much does a minimum-wage worker earn a week?

$ per week.

c. Suppose that the government pairs each $140-per-hour lawyer with 20 nearby minimum-wage workers. If the government taxes 25 percent of each lawyer’s income each week and distributes it equally among the 20 minimum-wage workers with whom each lawyer is paired, how much will each of those minimum-wage workers receive each week?

$ each week.

If we divide by the number of hours worked each week, how much does each minimum-wage worker’s weekly transfer amount to on an hourly basis?

$ per hour.

d. What if instead the government taxed each lawyer 100 percent before dividing the money equally among the 20 minimum-wage workers with whom each lawyer is paired.

How much per week will each minimum-wage worker receive?

$ per week.

How much is that on an hourly basis?

$ per hour.

The following table is taken from the publication 1992 Uniform Crime Reports for the United States. It gives the distribution by region for 1992 motor vehicle thefts. (A sample of 100 records was selected from each region.).Test the null hypothesis that there is no relationship between region of the country, and type of vehicle stolen. Use the .05 significance level

2. The European Union (EU) and United States (US) demand and supply equations for corn are:

QDEU = 70 – 2 PEU             QSEU = 20 + 3PEU

QDUS = 130 – 3PUS QSUS = 30 + PUS

where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country.

a. Graph the US and European Union supply and demand curves for corn (what are     the intercepts?).

b. Determine the US and European Union equilibrium prices in the absence of trade.

c. Find the surplus (or shortage) in both countries at the price of $ 20.

Now assume that there is free trade between the European Union and US.

d. Determine the international equilibrium price of corn (per ton).

e. How much corn is produced and consumed in the European Union and US.

f. How much corn is traded between the two regions. Draw graphs to represent the market situation before and after trade.

Suppose now that the US limits its imports of corn to 14 billions of tons.

g. What will be the new equilibrium prices of corn in the European Union and US? h. What are the new domestic production and consumption levels in each region? How much corn is traded?

2. The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – 2 PEU QSEU = 20 + 3PEU QDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country.

a. Graph the US and European Union supply and demand curves for corn (what are the intercepts?).

b. Determine the US and European Union equilibrium prices in the absence of trade.

c. Find the surplus (or shortage) in both countries at the price of $ 20. Now assume that there is free trade between the European Union and US.

d. Determine the international equilibrium price of corn (per ton).

e. How much corn is produced and consumed in the European Union and US.

f. How much corn is traded between the two regions. Draw graphs to represent the market situation before and after trade. Suppose now that the US limits its imports of corn to 14 billions of tons.

g. What will be the new equilibrium prices of corn in the European Union and US? h. What are the new domestic production and consumption levels in each region? How much corn is traded? ?