Project #71555 - Political Economy

What are three principal determinants of the level of investment?:

 

Suppose that in country A it takes 100 units of labor to produce a car and 10 units of labor to produce a bushel of corn. Suppose further that in country B the equivalent labor input requirements are 90 and 5 units, respectively. According to the theory of comparative advantage, both countries will be better off if:

 

What are the potential economic benefits of equity markets?:

 

According to Minsky's taxonomy of balance-sheet structures, an enterprise borrowing to finance the purchase of a fixed asset with a long expected life time will be:

 

 

 Answer 2 of the following questions in 300words each

A. What is Say’s Law? How may it fail to hold in a monetary economy?

B. Explain how deficit spending may increase national output in a setting of flagging private investment. How does the propensity of consumers to spend their income shape this effect?

C. What are the three types of financial structure identified by Hyman Minsky? Which of these types would best explain the situation faced by somebody taking out an interest-only mortgage?

D. What are the limitations and possible analytical problems with the theory of comparative advantage?

E. “In order to industrialize and ‘catch up’ economically, developing countries should adhere to the same ‘free-trade’ principles upheld by Britain as it industrialized in the course of the nineteenth century.” Discuss.

F. Suppose that aggregate investment is $18,000,000,000, government deficit spending is $2,000,000,000 (i.e., 18 and 2 billion), labor productivity is $50,000 per year worked, the average annual wage is $40,000, and the propensity to consume is 0.75. What will be the equilibrium level of employment, measured in labor-years? Show all steps of your calculation.

 

I NEED THIS IN 1:20 MIN

 

Subject Business
Due By (Pacific Time) 05/19/2015 12:00 am
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