Explain how BOP disequilibrium is restored under
(a) flexible exchange rates.
(b) fixed exchange rates, after you define what a BOP disequilibrium means.
(a) It is restored by exchange rate changes causing traded good price changes.
(b) By allowing a devaluation or using trade restrictions or else central banks must finance deficits.
Economics
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When a particular firm is fully utilizing its capital, its output is given by Y = 10 × . The cost of labor is $1 per unit. To maximize profit, how many units of labor should this firm use?
A) 25 B) 5 C) 3.16 D) 100 E) 50
Economics
Normal profit and the cost of capital are the same concept
Indicate whether the statement is true or false
Economics