Macroeconomics
Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 13, Problem 2AP
To determine

Reason for appreciation of U.S. real exchange rate and drop in Net exports and impact on financial flows.

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As a result of entering the world economy, Neverland experiences economic boom and its GDP goes up to y=13250: The functions that describe consumption and investment are still the same: Cd(,) = 5000 – 1000r+0.25Y and 1d (r) = 500 – 1800r +0.2Y. The government wants to take advantage of growth and increases its expenditures to: G- 190o. What is Neverland's current account balance? Note: Type in your answer approximated to two decimal points, i.e., your answer must be of the form "999.99". I will not be able to fix correct answers that were entered incorrectly, such as "999.999" or "999,99" or "999". In case the last digit in the correct answer is zero, e.g., "999.90" or "999.00", Blackboard will automatically delete it and you should not do anything about it.
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Why has it been politically challenging for governments to refocus efforts on new technology, education, and physical capital investment since the 2008-2009 recession? Select the correct answer below. They have focused on short-term recovery, but not enough on the long-term. O They have focused on long-term recovery, but not enough on the short-term. Efforts have instead been directed towards keeping the exchange rate constant. High-income countries do not prioritize the development of new technology, education, or physical capital investments.
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