describe the differences in the East German and West German economies prior to reunification.

In Chapter 9, the authors describe the differences in the East German and West German economies prior to reunification.  One key difference was found in the quality of goods produced by Eastern and Western producers.  The authors argue that the West German firms had access...

Write the equation for the dynamics of debt-to-GDP ratio and show the dynamics in a graph.

Assume that in an economy the real interest rate equals r=0.05, the rate of growth of real GDP equals y = 0.03 , and the primary deficit-to-GDP ratio equals d=0.03 and is expected to remain constant. a) Write the equation for the dynamics of debt-to-GDP...

Draw the consumer’s intertemporal budget line. Label the endpoints.

Intertemporal Budget choice. During the first period income (m1) is $500. During the second period income (m2) is $2,000. The interest rate ( r ) is 20% both for lending and for borrowing. The consumer's intertemporal utility function is u(c1,c2) = min{c1,c2} Draw the consumer's intertemporal budget line.   Label the...

Policymakers have debated whether banks should be permitted only to do banking business or whether banks should be permitted to engage in other lines of business such as selling insurance or buying and selling stocks and bonds.

Most U.S. banks are privately owned, profit-making organizations. Although they provide a service just as many other businesses, banks differ because of their importance in the macro-economy and are regulated by various government policies. Policymakers have debated whether banks should be permitted only to do...

Calculate a) The equilibrium value of Y, where planned demand equals planned supply in the goods market in an open economy;

1. An open economy with government is represented by the following equations: C = 1000 + 0.9Yd I = 500 G = 300 T = 0.2Y X = 200 M= 100 + 0.22Y Where C is consumption, Yd is disposable income, I is investment, G...

Using your own words, to what extent Russia-Ukraine geopolitical tensions affecting the Indonesian Macroeconomy?

Using your own words, to what extent Russia-Ukraine geopolitical tensions affecting the Indonesian Macroeconomy? Using the aggregate demand (AD), short-run aggregate supply (SRAS) and long run aggregate supply (LRAS) framework, demonstrate the short-run and long-run effects of the following: (a) A fall in demand...

Draw the consumer’s intertemporal budget line. Label the endpoints.

Intertemporal Budget choice. During the first period income (m1) is $500. During the second period income (m2) is $2,000. The interest rate ( r ) is 20% both for lending and for borrowing. The consumer's intertemporal utility function is u(c1,c2) = min{c1,c2} Draw the consumer's intertemporal budget line.   Label the...

Draw the full labor-leisure diagram with the budget line, and solve Larry’s point of optimization

   Budget line 1:  Larry is paid $20 per hour.  All income is tax free.  Labor-Leisure Cobb-Douglas Utility = CR     Draw the full labor-leisure diagram with the budget line, and solve Larry's point of optimization.   B.  Budget line 2:  Draw a new budget line to the...

Draw the supply and demand curves, with tax free equilibrium price and quantity solved.

The market has the following demand and supply curves: Demand:   QD(p) = 1,200 - 8 p Supply:      QS(p) = 2 p - 40 Draw the supply and demand curves, with tax free equilibrium price and quantity solved. Solve both consumer surplus and producer surplus.   Tax = $15 per unit.  Solve...

Critically discuss the following topics and explain how your team would help Walmart’s Cambridge Foods to satisfy its stakeholders.

Materials management includes the job of purchasing. In any industry, purchase refers to the acquisition of necessary equipment, materials, tools, and parts. The relevance of the buying function varies depending on the industry and its size. This duty is performed by the works manager in...