Which of the following would properly be classified as an unfavorable supply shock?   a)The interest rate decreases, spurring investment spending.   b)The government introduces a set of market reforms that strengthens property rights and makes it easier and safer for buyers and sellers to write contracts.   c)The world price of oil increases rapidly without warning and is expected to remain at the new high level for many years, making it more expensive for all firms to produce goods and services.   d)There is a technological improvement that allows firms to reduce their costs of production permanently.   e)There is an increase in government spending.

NEWS WIRE NORTH KOREA'S ROCKETS DEEPEN FOOD CRISIS   North Korea's Rocket Launches Cost $1.3 Billion   North Korea's rocket program is costly. In December 2012 North Korea successfully launched a long-range rocket carrying a satellite into space. That feat cost $300 million. The entire cost of the rocket program last year - including the failed launch in April - totaled about $1.3 billion according to estimates by South Korea experts. With that much money North Korea could have purchased 4.6 million tons of corn - enough to feed its population for 4-5 years. North Korea's ambitious nuclear program costs nearly triple that amount. The burden of North Korea's military program is evident in widespread poverty and periodic starvation.   Source: News accounts of December 2012 - January 2013.     According to the News Wire, what is the opportunity cost of North Korea's rocket program in terms of corn for North Korea's 25 million people?           million tons of corn

Scenario : The US enters into a new free trade agreement. How does this affect Aggregate Demand and Supply? What are the corresponding effects on Unemployment and Inflation as a result? What fiscal and or monetary policies would you recommend to bring the economy back to Long Run Equilibrium? Why would or why wouldn't you support this trade policy?

If the income in Mexico rises, all else the same, what will happen to the US exports to Mexico? Select the correct answer below: exports will increase exports will decrease exports will remain unchanged it cannot be determined

Can you please answer question 48, please? No explanation needed. Thanks in advance.  48) The trade effect of Brexit for the UK is likely to be      A) a reduction in trade with the EU. B) either a reduction or an increase in trade between the UK and non-EU countries. C) a reduction in both inward and outward capital flows between the UK and the EU. D) A and B E) A, B and C

Discuss In Detail Four Features Of The Traditional And Continuing Features Of The Japanese Economy.

Consider a small, open economy inhabited by a large number of individuals who live for an infinite number of periods and who can perfectly forecast the future. In this economy there is only one good, tradable at no cost, such that its domestic price is determined by the Law of One Price, P(t) 5 S(t)F, where PðtÞ is the domestic price of the good and PF is the foreign price of the good, which we will assume is equal to 1. Time is continuous and the economy is endowed with a constant and exogenous flow of the consumption good. There is perfect mobility of capital in the sense that agents can lend or borrow at the international interest rate of i > 0, which we assume as constant. The real money supply is defined as  where M(t) is the nominal money supply. This economy finances an exogenous fiscal deficit, a. Show that the rate of growth of the real stock of money is equal to the difference between the rate of growth of money supply and inflation. b. Assume that the…

The economy of a hypothetical country has been stable for two or three years with very low unemployment. Wages have been gradually increasing during this time. Now an aggressive policy of increasing tariffs on foreign goods imported into the country results retaliatory actions from the other countries against the country’s products and services. This causes great loss of business in the country and results in significant portion of workers losing their jobs. 1. What kind of economic gap will start to occur (inflationary or recessionary)? 2. What part of the Federal Reserve’s congressional mandate does this scenario trigger (price stability and maximum sustainable employment)? 3. What kind of monetary policy might be helpful to stabilize the economy (expansionary or contractionary)? 4. What specific monetary policy tools does the Federal Reserve have available to use in this scenario? 5. Explain in detail, how should the Federal Reserve use each of these tools to maximize their effect…

8. A) What is globalization? How do we know it is occurring? B) What is the benefits/costs of globalization? C)With current conditions in the world what is happening with globalization? Support your answer.

When incomes rise, imports tend to a) behave in an unpredictable manner b) fall c) rise d) stay the same