Russia-Ukraine conflict. 4.1 Suppose this incidence affects Russia’s economy as followed: (1) a sharp reduction in net-export (NX) in the short-run and (2) a decline in capital stock in the long- run. With the aid of AD & AS diagram, elaborate the impacts on both price level and quantity level in Russia (including adjustment process), both in short-run and long-run. 4.2 After the incidence, Russian government wishes to restore the economy back to normal (prior to the conflict). Which policies should the Russian government impose? State the policies. With the aid of AD & AS diagram, elaborate how the initial (prior to the conflict) equilibrium is restored (including adjustment process), both in short-run and long-run.

Russia-Ukraine conflict. 4.1 Suppose this incidence affects Russia’s economy as followed: (1) a sharp reduction in net-export (NX) in the short-run and (2) a decline in capital stock in the long- run. With the aid of AD & AS diagram, elaborate the impacts on both price level and quantity level in Russia (including adjustment process), both in short-run and long-run. 4.2 After the incidence, Russian government wishes to restore the economy back to normal (prior to the conflict). Which policies should the Russian government impose? State the policies. With the aid of AD & AS diagram, elaborate how the initial (prior to the conflict) equilibrium is restored (including adjustment process), both in short-run and long-run.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 8SCQ: State whether each of the following events Involves a financial flow to the U.S. economy or away...

See similar textbooks

Similar questions

"In an economy with a high dependency on imported oil, what is the likely macroeconomic impact of a sustained and significant increase in global oil prices? A) An immediate improvement in the trade balance due to Increased export revenues. B) A decrease in inflation as higher oil prices lead to reduced consumer spending. C) An increase in the general price level and potential deterioration of the trade balance. D) Stabilization of the currency value due to increased demand for domestic currency to purchase oil.
2
Mexico and the United States are trade partners. Each country has a zero current account balance and is operating in long-run equilibrium. Assume that the inflation rate in the United States is slowing relative to Mexico's inflation rate. (a) How will the inflation rate change in the United States affect: (i) Mexico's demand for U.S. goods and services? (ii) net exports of Mexico? Explain. (b) Illustrate the impact of the change you identified in part (a) on a fully labeled AD–AS model for the economy of Mexico. Use arrows to indicate any changes in AD, real GDP, and price level. (c) Ceteris paribus, will the national income of the United States increase, decrease, or remain the same? (d) On side-by-side and fully labeled foreign exchange market graphs, illustrate the impact of the change in relative inflation on the supply of Mexican pesos and on demand for U.S. dollars. Use arrows to indicate the change in the equilibrium exchange rate for each currency.…
(a) Explain, using a diagram, how an increase in the demand for a country’s exports is likely to affect its terms of trade and its balance of trade. (b) Do PEDs for exports and imports come into play?
1. Consider the following information. Exports are $600 million and grow to 15% a year over the next two years. Imports are $1,200 and grow 30% a year over the next two years. What is the trade balance at the end of the second year? Explain in general terms what should happen to the economy over the next two years? (assume that nothing else in the economy changes). 2. Consider the following
14. For this question, assume that equilibrium output is determined in the zZ - Y diagram. Further assume that policy makers' goals are (1) to achieve balanced trade (i.e., NX = 0); and (2) to achieve a target level of output, say Y". Now, suppose that the initial level of equilibrium output is equal to Y' (i.e., Y = Y") and that a trade deficit exists at this initial level of output. Which of the following policy actions would most likely enable the policy makers to achieve their two goals simultaneously? A) a reduction in government spending B) convince the country's trading partners to pursue policies that will cause an increase in foreign income (Y *) C) a reduction in the real exchange rate D) a reduction in taxes E) a simultaneous increase in government spending and reduction in the real exchange rate F) none of the above
Q58. Your text has a discussion of various ways nations can skew income, production, and price-level data. Why would any nation choose to do so? to avoid paying its debts to avoid lower credit ratings or ease concerns of foreign investors to keep the rich from getting richer to increase its external wealth Q17. Suppose that the new international relative price of computers increases from the pre-trade price. If we then subtract the number of computers purchased domestically at the new international price from the number of computers produced, we will get one point on for computers. Shoes 500 225 U, 150 175 200 300 Computers the import demand curve the export supply curve the production possibilities frontier O the indifference curve O O O O
18. A reduction in the marginal propensity to import will cause A) the ZZ line to become flatter and a given change in government spending (G) to have a larger effect on domestic output. B) the ZZ line to become flatter and a given change in government spending (G) to have a smaller effect on domestic output. C) the ZZ line to become steeper and a given change in government spending (G) to have a larger effect on domestic output. D) the ZZ line to become steeper and a given change in government spending (G) to have a smaller effect on domestic output.
Can help me with questions 42? I guess it, but I think it’s incorrect.
Question 5. Assume that the income level in Canada rises at a much higher rate than does the U.S. income level. Other things being equal, how this should affect: 1) The Canadian demand for U.S. dollars (explain both verbally and graphically) 2) Supply of U.S. dollars for sale (explain both verbally and graphically) 3) Equilibrium value of the U.S. dollar (explain both verbally and graphically)
State whether each of the following events Involves a financial flow to the U.S. economy or away from the U.S. economy: Export sales to Germany Returns paid on past U.S. financial investments In Brazil Foreign aid from the U.S. government to Egypt Imported oil from the Russian Federation Japanese investors buying U.S. real estate
D7)