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E4
How is the AD-BT-ERU curve affected by global recession ; regarding
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- What are the automatic adjustment mechanisms for current account imbalances under the classical and Keynesian views? DiscussWhat are the major issues with regard to trade imbalances for the U.S. economy?What are the automatic adjustment mechanisms for current account imbalances under the classical and Keynesian views?
- Explain the term Trade CycleWhat are the automatic adjustment mechanism for current account imbalance under the classical and Keynesiab views? Discuss.State reasons why devaluation only be successful if the imports and exports are elastic and not inelastic, by incorporating a Marshall-Lerner condition diagram followed by explanations.
- What gap would be created on an AS-AD model if the US dollar became weaker against other currencies?Explain how changes in exchange rates impact the economy through the aggregate demand- aggregate supply (AD/AS) model. Explain how fluctuations in exchange rates can influence loans and banks.Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in Aggregate Demand? Will a change in the exchange rate that subsequently increases the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of Real GDP or to a change in Aggregate Demand?
- What are the Cambridge effect, Keynes effect and real exchange rate effect? Compare them. (short answer, just fundamentals)provide a specific statement of the current status of the US Economy - identifying the current status -how are is infaltion hurting our economyIn the Keynesian balance of payments model A. The trade balance is not affected by income changes. B. An increase in income will increase exports. C. An increase in income will increase imports. D. An increase in income will increase the trade balance. E. An increase in income will increase both imports and exports.
