ECONOMICS 102 PRACTICE MIDTERM #2 Covered: Chapter 5 Large Open Economy Chapter 7 (No velocity or elasticity) Chapter 9 (No AD/AS model) A. Multiple choice 1. The nominal demand for money is proportional to a. real income. b. the nominal interest rate. c. the nominal interest rate on money. d. the price level. e. None of the above. 2. Lower interest rates increase the real quantity of money demanded a. by changing the distribution of wealth toward the poor‚ who have
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1. Open Economy vs. Closed Economy • Open Economy A country has an open economy if it is joining international trade‚ which exporting and importing are collectively together. Selling or buying of goods or services to a foreign country is allowed in this kind of economy. The Market-economy is mostly free from trade barriers and where exports and imports form a large percentage of the GDP. Imports give citizens of a country access to products and services provided by other nations
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Affairs‚ Lagarde‚ asked Germany to boost the do-mestic demand‚ which stagnated due to the slow growth of the unit labor costs and wages. The unit labor costs are an indicator for a country’s price level. Assume that the French (German) unit labor costs are an equivalent of the domestic (foreign) price level P (P*). a) Explain the term “unit labor costs” briefly in words and use the internet for your research. b) How has the real exchange rate between France and Germany developed (France=Home Country)
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Ariella Dayan (326883881) Quantitative Research Methods- Shani Greenspan November 25‚ 2012 The Correlation of Income Level and Happiness Level This study will investigate the relationship between income and happiness. A very popular question in today’s society is whether money can buy happiness. Happiness has been shown to be related to many things. It is found to be related to social class‚ success‚ power‚ health‚ valued belongings‚ religious beliefs‚ companionship‚ being employed in a secure
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Journal of International Economics 56 (2002) 299–327 www.elsevier.com / locate / econbase Explaining business cycles in small open economies ‘How much do world prices matter?’ M. Ayhan Kose* Graduate School of International Economics and Finance‚ MS-021‚ Brandeis University‚ Waltham‚ MA 02454‚ USA Received 27 May 1998; received in revised form 20 October 2000; accepted 7 April 2001 Abstract This paper analyzes the role of world price shocks – fluctuations in the prices of capital‚ intermediate
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CHAPTER 12 The Open Economy Revisited Questions for Review 1. In the Mundell–Fleming model‚ an increase in taxes shifts the IS* curve to the left. If the exchange rate floats freely‚ then the LM* curve is unaffected. As shown in Figure 12–1‚ the exchange rate falls while aggregate income remains unchanged. The fall in the exchange rate causes the trade balance to increase. e LM* Exchange rate Figure 12–1 A B IS2* IS1* Y Income‚ output 119 Answers to Textbook Questions and Problems
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“DIGITAL ECONOMY” Introduction At present‚ we have devoted an effort to describe the impact of Information and Communication Technologies on income distribution in Thailand. Some concepts have aroused as Digital Development‚ Information Society‚ Knowledge-based societies‚ Network Societies…and above all‚ the needs to make the evolution of these theoretical constructs measurable. This effort has served many purposes‚ being the more relevant (a) explaining what was the impact of
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Economy of Ghana National income determinants and the economy of Ghana NATIONAL INCOME ACCOUNTING National income accounting refers to a set of rules and techniques that are used to measure the national income of a country. In other words‚ National income is a measure of the value of goods and goods produced by the residents of an economy in a given period of time‚ usually a quarter or a year. National income can be real or nominal. Nominal national income refers to the current year
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Disclosure Authorized 65980 V I E T N A M D E V E L O P M E N T R E P O RT 2 0 1 2 MARKET ECONOMY FOR A MIDDLE-INCOME VIETNAM Joint Donor Report to the Vietnam Consultative Group Meeting December 06‚ 2011 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Consultation Draft Vietnam Development Report 2012 MARKET ECONOMY FOR A MIDDLE-INCOME VIETNAM Joint Donor Report to the Vietnam Consultative Group Meeting December 06‚ 2011 VIETNAM
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The Open Economy The External Sector Introduction Global Economic Integration through: – (1) Opening up international trade in goods and services – (2) Opening up international movement of labour – (3) Opening up international movement of capital Macroeconomic policy focuses on (1) and (3) In a globally integrated world‚ macroeconomic policies of a country have repercussions on other economies too Introduction The extent of these repercussions depends on
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