1) If a county becomes less likely to default on its bonds, what happens to that country’s interest rate and exchange rate? Explain.2) PriceRoConsider four perfectly competitive firms. Assume that each firm faces a market price of Po-PriceFirm 1ATCMCAVCQuantityFirm 3Click to select your answer.MCATCAVCGPriceaPoPriceATCFirm 2QuantityFirm 4MCMCATCAVCGAVCvide Question 2 of 5Y10987654321001 234 5 6 7 8 910ltotal income per day.Consider the figure above and suppose the person has 7 hours per day to divide between labour and non-labour activities.A. If non-labour income is $0.50 per day, this individual will choosehours of work andwill have $hours instead and enjoyhours of leisure. Their income from labour will be $B. If non-labour income increases to $2, they will workC. Comparing parts A and B above, the income elasticity of this person's labour is equal tohours of leisure. Their total income per day will now be $(round to two decimal places) which is(elastic/inelastic).Now (ignoring the figure above) suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w).A. Graph the labour supply if L=5w. The (total) elasticity of labour supply isB. Graph the labour supply if L. = 14w. The (total) clasticity of labour supply isper day and they

Interest rate:The interest rate is the fee of borrowing cash or the return on an investment…

Answered: 1) If a county becomes less likely to…

1) If a county becomes less likely to default on its bonds, what happens to that country’s interest rate and exchange rate? Explain.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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Question

1) If a county becomes less likely to default on its bonds, what happens to that country’s interest rate and exchange rate? Explain.

Price
Ro
Consider four perfectly competitive firms. Assume that each firm faces a market price of Po-
Price
Firm 1
ATC
MC
AVC
Quantity
Firm 3
Click to select your answer.
MC
ATC
AVC
G
Price
a
Po
Price
ATC
Firm 2
Quantity
Firm 4
MC
MC
ATC
AVC
G
AVC
vide

Question 2 of 5
Y
10
9
8
7
6
5
4
3
2
1
0
0
1 2
3
4 5 6 7 8 9
10
l
total income per day.
Consider the figure above and suppose the person has 7 hours per day to divide between labour and non-labour activities.
A. If non-labour income is $0.50 per day, this individual will choose
hours of work and
will have $
hours instead and enjoy
hours of leisure. Their income from labour will be $
B. If non-labour income increases to $2, they will work
C. Comparing parts A and B above, the income elasticity of this person's labour is equal to
hours of leisure. Their total income per day will now be $
(round to two decimal places) which is
(elastic/inelastic).
Now (ignoring the figure above) suppose aggregate labour supply is measured as aggregate number of hours worked (L) given wage (w).
A. Graph the labour supply if L=5w. The (total) elasticity of labour supply is
B. Graph the labour supply if L. = 14w. The (total) clasticity of labour supply is
per day and they

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