over 1 year ago

why countries experience high inflation?

Solved

over 1 year ago

Assume that product A is measured on the vertical axis and product B is measured on the horizontal axis. Assume further that product B is an inferior good. Is the coefficient of income elasticity positive or negative?

Assume that product A is measured on the vertical axis and product B is measured on the horizontal axis. Assume further that product B is an inferior good.

abdishakur-salim

almost 2 years ago

Economics

Sunshine is a small open economy described by the following long-run classical equations where Y is the economy’s real GDP, T-taxes, G-government spending, NX – net exports, I-investment, C- consumption, r – domestic interest rates, r* - world intere

Sunshine is a small open economy described by the following long-run classical equations where Y is the economy’s real GDP, T-taxes, G-government spending, NX – net exports, I-investment, C- consumption, r – domestic interest rates, r* - world interest rates. Y=4000 G=1250 T=1,000 C=250+2/3 (Y-T) I = 450-25r NX= 1250 –175ϵ r = r* = 4 a) Required: Select the appropriate answer that represent [i] investment, [ii] national savings, [iii] equilibrium exchange rate and [iv] trade balance. b) Suppose the government of sunshine cut its spending to 2,000. Required: Select the appropriate answer that represent [i] investment, [ii] national savings, [iii] equilibrium exchange rate and [iv] trade balance. c) Now suppose the world interest rate falls from 8 to 3 percent, (G is again 2000). Required: Select the appropriate answer that represent [i] private savings, [ii] public savings, [ii] national savings, [iv] investment, [v] trade balance and [vi] equilibrium exchange rate

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why countries experience high inflation?

Assume that product A is measured on the vertical axis and product B is measured on the horizontal axis. Assume further that product B is an inferior good. Is the coefficient of income elasticity positive or negative?

Sunshine is a small open economy described by the following long-run classical equations where Y is the economy’s real GDP, T-taxes, G-government spending, NX – net exports, I-investment, C- consumption, r – domestic interest rates, r* - world intere

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