I need do fast typing clear urjent no chatgpt used i will give 5 upvotes pls full explain with diagram 3. Assume an economy operates in long-run equilibrium. Using an AD-AS diagram, showthe direction of the shift for the AD, SRAS, and/or LRAS for each of the followingchanges in conditions. Show the effect on the price level (P) and GDP (Y). Finally, showmovement back to long run equilibrium.a. The price of crude oil rises significantly (temporary).b. Spending on national defense doubles.c. An improvement in technology raises labor productivity.d. The government passes a law doubling all manufacturing wages.

Detailed explanation: Initial Situation: Long-Run EquilibriumBefore any of the changes occur, the…

Answered: 3. Assume an economy operates in…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter10: Measuring Exposure To Exchange Rate Fluctuations

Section: Chapter Questions

Problem 24QA

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Use the following terms for this question: C = Consumption. I = Capital investment spending. G = Government spending. X = Exports of goods and services. M = Imports of goods and services. BOP = Balance of Payments. GDP = Gross Domestic Product. NPV = Net Present Value. INF = Inflation. R = Real rate of return. The static equation for a country’s GDP is: A. GDP = C + I + G + X – M - (R – INF). B. GDP = C + I + G + X + M. C. GDP = C + I + G + X – M. D. GDP = C + I + X - M + R – INF.
1. If the economy is expected to enter a period of strong growth, which of the following would be the best course of action? A. Purchase Utility Stocks B. Purchase Treasury Bills C. Purchase stocks D. Purchase bonds 2. Which of the following sector rotations would likely occur if it is forecast that economic conditions will decline? A. rotate from discretionary to staples B. rotate from defensives to cyclicals C. rotate from staples to discretionary D. rotate from utilities to tech 3. When a industry is entering a period of rapid expansion, what is generally true of the valuation /multiple of stocks in that industry? A. Multiples / Valuation will increase B. Sales will likely contract C. Multiples / Valuation will decrease D. None of the listed answers are correct 4. Economic indicators can help us formulate our opinion about macro factors, which can help direct our investment decisions. Which of the following is true about economic indicators right now?…
Following an economic trough, the economy will often enter: Group of answer choices a. an expansion. b. a contraction. c. deflation. d. a peak. e. another trough.
Fill in the blanks with the number that corresponds to the correct word or phrse below: 1. Deflation 2. GDP deflator 3. Consumer price index (CPI) 4. base 5. Labor statistics 6. Employment cost index 7. dollar 8. Producer price index 9. International price index 10. Consumer expenditure survey 11. Percentage change 12. indices Price are created to calculate an overall average change in relative prices over time. To convert the money spent on the market basket of goods, to an index number, economists arbitrarily choose one year to be the year, or starting point from which we measure changes in prices. The year, by definition, has an index number equal to 100. The inflation rate is not derived by subtracting the index numbers, but rather through the calculation. Index numbers have no signs or other units attached to them. The most commonly cited measure of inflation in the United States is the The Bureau of is responsible for the computation of the Consumer Price Index. is a national…
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The stage in which the economy hits a peak is called: Group of answer choices a. expansion. b. contraction. c. stagnation. d. recession. e. depression.
answer for part D
Consider the AA-DD model with flexible exchange rates. Assume the economy is initially at full employment. a) Suppose a temporary shock to the money demand pushes the economy into recession. Describe one policy intervention that takes the economy back to its pre- shock equilibrium position.
To calculate a terminal value, one divides the next period's cash flow by the spread between the and discount rate growth rate. a. variable; variable b. constant; variable c. variable; constant d. constant, constant
A country’s current account position moves from a surplus to a deficit. What will be the result? Pick a,b,c, or d A) an increase in real GDP B) a decrease in unemployment C) an increase in the exchange rate D) a decrease in the money supply
Choose the correct answer 1.) Which of the following is/are the possible effects of introducing fresh currency?[S1] Increase in money supply with the public [S2] The rise in the nominal income of public [S3] The fall in the general price level A.) Statement 1 only. B.) Statements 1 and 2 only. C.) Statement 2 only. D.) Statements 1, 2, and 3. 2.) If the quantity of money demanded exceeds the quantity of money supplied, then the interest rate will A.) fall B.) remain constant C.) rise D.) change in an uncertain direction 3.) [Case 1] Mortgagor A earns P50,000 a month while Mortgagor B earns P80,000 per month. [Case 2] Mortgagor C is willing to make a down payment of P3,000,000 while Mortgagor D will make a down payment of P5,000,000. Assuming everything else is held constant, who will have a better credit rating A.) A and C B.) A and D C.) B and C D.) B and D
need only answer not explain 1. Economic theorists expanded on the Keynesian aggregate supply model in the late 1940s, broadening it into a three-part aggregate supply curve. Which of the following best describes that three-part supply curve? a. A flat initial segment, followed by an upward-sloping middle segment until full-employment GDP is reached, and finally a vertical segment at full-employment GDP b. A flat initial segment, followed by a modestly upward-sloping middle segment until full-employment GDP is reached, and finally a more steeply upward-sloping segment beyond full-employment GDP c. A flat initial segment until full-employment is reached, followed by a vertical segment at full-employment GDP, and finally followed by another flat segment once the full-employment price level is reached d. An upward-sloping initial segment, followed by an upward-sloping segment until full-employment GDP is reached, and finally followed by another flat segment beyond full-employment…

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