Tag: Economics question

International trade can have big effects on domestic markets. For both an import good and an export good (in other words, address each bulleted item below twice—once for import and once for export), describe how opening up to international trade affects the following:

supply or demand for the particular good,
the competitiveness of that good’s market, and
how the change in competitiveness affects equilibrium price and quantity.
Stepping away from the import/export examples, describe how opening up to trade specifically affects a domestic monopoly. Include an explanation, using game theory, of how even a single additional competitor can lead to a market outcome similar to perfect competition.

The goods market of a closed economy obeys the following equation system: C = 50 + 0.9(Y −T) Z = C + I + G, with the given exogenous values

I = 100, G = 600, T = 500.

Determine the equilibrium values for output at Y = Z, for C, and for disposable income Y −T = YD. Evaluate the fiscal multiplier.
This equilibrium is unsatisfactory, as government expenditures exceed revenues and thus public saving is negative. Determine the values for G and T that are required to fulfill the condition G = T and nevertheless keep output Y at the same level. Evaluate C and YD.
Suppose the government now increases G as well as T by the same amount, say by 100. By how much does Y change if at all? The corresponding value ∆Y/∆G is called the balanced-budget multiplier.
Now re-consider the original economy in (a), i.e. without assuming G = T, but assume that taxes T depend on output T = 0.2Y. Determine the fiscal multiplier for this modified model.

Write a summary of 650 words for the question below, use the APA format (including Times New Roman with font size 12 and double spaced).

The assigned readings for Week 6 focus on economies in transition from one economic system to another. As most economies reopen after the COVID-related shutdowns, we are all experiencing a form of economic transition. In what ways are the economic transitions described in Chapters 12-14 like the present re-openings? If you were the economic minister for a reopening economy, what are the top two things you would do to get your economy on track for fast growth and recovery?

Refer to the textbook below to complete the assignment.

Text Book: Title: Comparative Economics in a Transforming World Economy

ISBN: 9780262037334

Edition: Third