Q: The year 2017 closed with the unemployment rate just below 4 percent
The year 2017 closed with the unemployment rate just below 4 percent, real GDP growing at roughly 2.5 percent, inflation slightly below 2 percent, and the federal budget showing a deficit under 3 perc...
See AnswerQ: You have a dozen shirts and your roommate has six pairs of
You have a dozen shirts and your roommate has six pairs of shoes worth roughly the same amount of money. You decide to swap six shirts for three pairs of shoes. In financial terms, neither of you gain...
See AnswerQ: Now raise exports to $650 and find the equilibrium again.
Now raise exports to $650 and find the equilibrium again. How large is the multiplier?
See AnswerQ: In the eighteenth century, some writers argued that one person in
In the eighteenth century, some writers argued that one person in a trade could be made better off only by gaining at the expense of the other. Explain the fallacy in this argument.
See AnswerQ: After the removal of a quota on sugar, many U.
After the removal of a quota on sugar, many U.S. sugar farms go bankrupt. Discuss the pros and cons of removing the quota in the short and long runs.
See AnswerQ: Country A has a mercantilist government that believes it is always best
Country A has a mercantilist government that believes it is always best to export more than it imports. As a consequence, it exports more to Country B every year than it imports from Country B. After...
See AnswerQ: Under current trade law, the president of the United States must
Under current trade law, the president of the United States must report periodically to Congress on countries engaging in unfair trade practices that inhibit U.S. exports. How would you define an “unf...
See AnswerQ: Suppose the United States finds Country X guilty of unfair trade practices
Suppose the United States finds Country X guilty of unfair trade practices and penalizes it with import quotas. So U.S. imports from Country X fall. Suppose, further, that Country X does not alter its...
See AnswerQ: What items do you own or routinely consume that are produced abroad
What items do you own or routinely consume that are produced abroad? From what countries do these items come? Suppose Americans decided to buy fewer of these things. How would that affect the exchange...
See AnswerQ: If the dollar appreciates relative to the euro, will the German
If the dollar appreciates relative to the euro, will the German camera you have wanted become more or less expensive? What effect do you imagine this change will have on American demand for German cam...
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